Question about auto financing & dealerships

[396_WAYS_TO_SPIT]

If you make a down payment and a dealership changes your loan do you have any rights? What if they no longer have the contract? Can they keep your down payment because they misinformed you about a particular loan? I recently had an issue with a dealership and they are trying to screw me :(

[KahunaJuice]

If you make a down payment and a dealership changes your loan do you have any rights? What if they no longer have the contract? Can they keep your down payment because they misinformed you about a particular loan? I recently had an issue with a dealership and they are trying to screw me :(
Once you make a down payment, it should be because you have a written CONTRACT. After that, it depends on what is written in that CONTRACT IN WHICH YOU AGREE. A CONTRACT is a CONTRACT!!!!!!!!!!!!!!!!!!!!!!!!

[Pheelin Phroggy]

That happend to us about 8 years ago... they called us 4 days later saying they needed to "unwind" the deal, unless we were willing to raise our interest rate by 2%, it was an end of month deal and they made the deal to get there sales, they figured we would do it because we had the truck. We brought the truck back to them used (as we were in Vegas celebrating our new truck), got our down payment back and filed with ever agency we could find a complaint for improper business practices. Of course nothng happened.. but we hate unethical foookkers! We have not bought a chevy since.
I would try to unwind the deal, dont leave without your down payment and go buy a vehicle from someone with some integrity.

[BoatPI]

You need to supply more details. They may have to unwind it if they could,not sell your loan at the rate tha tthey quoted. You may have an out depending on the State that you are in, or the contract that you signed. Either way if they have to change the contract tearms, it is almost 100% certain that if you return the vehicle immediately you are entitled to a full refund of the down payment. In CA I believe that they have to inform you in writing as to why your credit is being denied. You may be able to work it out if say your credit report is innacurate, etc.

[TheCarDudes]

When you buy a vehicle and do a "SPOT" delivery the dealership makes their best judgement on what terms the bank/finance company will purchase your loan at. If they estimate the correct interest rate and terms, you don't hear from the dealership at all. If they are incorrect, they do have the right to request that you agree to a change in terms and sign a new contract. At that point, unless the dealership wants to carry the paper on the loan themselves, you also have the right to cancel said contract/deal and get a full refund of any money you have given them for a down payment or deposit UNLESS you specifically signed a seperate contract about your down payment or deposit being non-refundable.
The last option the dealer has is to buy down the interest rate with the bank to keep you in the vehicle with the same terms you originally left their dealership with. This obviously means they will be writing a check to the bank to keep the deal together. All in all, you just need to understand that if it is the car/truck that you want, telling the first dealer to pound sand ,give the car back, and get your down payment back might not be the best way to go if you plan on going to another dealer to try and buy a similar vehicle. You would just be starting over from square 1 with the second dealer and ultimately end up in a similar position if not exactly the same position as the first with twice the work. Try and work it out with the first dealer.
TCD

[cruser]

I don't understand how the dealer can change the contract. Once signed, it is an agreement between the dealer and the buyer to transfer the ownership of the vehicle for $xx down and $yy per month. It is not the buyers fault that the dealer made a mistake and can't unload the loan, given that the buyer did not mis-represent his status. The dealer does have access to the buyers credit info and uses this to guage the buyers status. Will the dealer inform the buyer if the dealer is able to get a better deal than the one originally negotiated? Never had that happen or heard of it happening to anyone I know.
I have had the dealer come back after a day or two and ask for more money down. My response was the deal was made when I signed the contract, sorry no more money.

[boatsnblondes]

When you buy a vehicle and do a "SPOT" delivery the dealership makes their best judgement on what terms the bank/finance company will purchase your loan at. If they estimate the correct interest rate and terms, you don't hear from the dealership at all. If they are incorrect, they do have the right to request that you agree to a change in terms and sign a new contract. At that point, unless the dealership wants to carry the paper on the loan themselves, you also have the right to cancel said contract/deal and get a full refund of any money you have given them for a down payment or deposit UNLESS you specifically signed a seperate contract about your down payment or deposit being non-refundable.
The last option the dealer has is to buy down the interest rate with the bank to keep you in the vehicle with the same terms you originally left their dealership with. This obviously means they will be writing a check to the bank to keep the deal together. All in all, you just need to understand that if it is the car/truck that you want, telling the first dealer to pound sand ,give the car back, and get your down payment back might not be the best way to go if you plan on going to another dealer to try and buy a similar vehicle. You would just be starting over from square 1 with the second dealer and ultimately end up in a similar position if not exactly the same position as the first with twice the work. Try and work it out with the first dealer.
TCD
What he said:D

[Miss Perfect]

I don't understand how the dealer can change the contract. Once signed, it is an agreement between the dealer and the buyer to transfer the ownership of the vehicle for $xx down and $yy per month. It is not the buyers fault that the dealer made a mistake and can't unload the loan, given that the buyer did not mis-represent his status. The dealer does have access to the buyers credit info and uses this to guage the buyers status. Will the dealer inform the buyer if the dealer is able to get a better deal than the one originally negotiated? Never had that happen or heard of it happening to anyone I know.
I have had the dealer come back after a day or two and ask for more money down. My response was the deal was made when I signed the contract, sorry no more money.
On most finance contracts, at least all of the ones I have seen, it says that the seller has the right to cancel the contract if they cannot find financing.

[TheCarDudes]

Believe it or not, it does occassionally happen. The deal could call the consumer back to resign at a lower interest rate but the dealer is also making more money in doing so. The reason would be that the finace company or bank bought the loan at a lower rate than the dealer had anticipated. Most banks have a cap on what they can mark up the loan. If you signed at 8.99% and the bank bought the loan at 5.75%, the dealer will call you back in, sign you up on a new contract at let's say 8.25% (most banks usually let you mark up a loan max 2.5 points), you leave with a lower payment and are very happy.
Remember, everyone is entitled to make money. With the ever shrinking margins on new cars, and the technology of the interenet to shop and compare used cars, the dealer does have the right to broker the loan and make money doing it. If you don't like that side of the deal, get your own financing at the credit union or your local bank. Most of the time, it will not compete with what the dealer can obtain for you for MANY reasons. I could write a book abou this but hopefully, I have summed it up for you.
George

[TheCarDudes]

On most finance contracts, at least all of the ones I have seen, it says that the seller has the right to cancel the contract if they cannot find financing.
You are correct. There are lots of disclosures on today's contracts. Read what you are signing. If you don't understand it, have them explain it to you. If you still think you are getting taken for a ride, spend an hour with your family attorney and let them review your contract before you sign it. Any reputable dealer would allow you to fax it to someone for review before you sign.
Good luck.
George

[Miss Perfect]

Believe it or not, it does occassionally happen. The deal could call the consumer back to resign at a lower interest rate but the dealer is also making more money in doing so. The reason would be that the finace company or bank bought the loan at a lower rate than the dealer had anticipated. Most banks have a cap on what they can mark up the loan. If you signed at 8.99% and the bank bought the loan at 5.75%, the dealer will call you back in, sign you up on a new contract at let's say 8.25% (most banks usually let you mark up a loan max 2.5 points), you leave with a lower payment and are very happy.
Remember, everyone is entitled to make money. With the ever shrinking margins on new cars, and the technology of the interenet to shop and compare used cars, the dealer does have the right to broker the loan and make money doing it. If you don't like that side of the deal, get your own financing at the credit union or your local bank. Most of the time, it will not compete with what the dealer can obtain for you for MANY reasons. I could write a book abou this but hopefully, I have summed it up for you.
George
This exact thing happened to me when I bought my Honda. They had me come in and sign a new contract at a lower interest rate. They also told me that I had to purchase an extended warranty for the bank to do the loan. I knew this was a lie, but I played it cool and went in and signed at a new lower interest rate and also signed to purchase the extended warranty that was WAY overpriced. I waited until I got my financing paperwork from Honda, then I went down to the dealer and canceled the extended warranty, told them they were a bunch of creeps and laughed because I saved about $2000 on my car.

[Pheelin Phroggy]

Believe it or not, it does occassionally happen. The deal could call the consumer back to resign at a lower interest rate but the dealer is also making more money in doing so. The reason would be that the finace company or bank bought the loan at a lower rate than the dealer had anticipated. Most banks have a cap on what they can mark up the loan. If you signed at 8.99% and the bank bought the loan at 5.75%, the dealer will call you back in, sign you up on a new contract at let's say 8.25% (most banks usually let you mark up a loan max 2.5 points), you leave with a lower payment and are very happy.
Remember, everyone is entitled to make money. With the ever shrinking margins on new cars, and the technology of the interenet to shop and compare used cars, the dealer does have the right to broker the loan and make money doing it. If you don't like that side of the deal, get your own financing at the credit union or your local bank. Most of the time, it will not compete with what the dealer can obtain for you for MANY reasons. I could write a book abou this but hopefully, I have summed it up for you.
George
As a business owner I fully understand that everyone is entitled to make money... and have no problem what so ever with honest problems when they occur...
But when they intentionally sell you a vehicle, knowing that they can not honor the contract.. just to make their sales numbers.. they should be casterated! I should have paid attention when they had protesters outside who had the same thing done to them... not 1 or 2.. but about 30 of them.
We went elsewhere and got exactly what they offered... just like every other place we have bought from, except this one... and yes it is a major dealer in the High Desert. Bottom line ..... they will never see me or my friemds business.. wont hurt them, but I feel better.

[Havasu1986]

If you make a down payment and a dealership changes your loan do you have any rights? What if they no longer have the contract? Can they keep your down payment because they misinformed you about a particular loan? I recently had an issue with a dealership and they are trying to screw me :(
You would not of had this problem if you had bought from Photoglou. ;)

[ratso]

Jbb had that problem with a Jeep...:idea: We all know how he handled that one.:jawdrop:

[Ziggy]

On most finance contracts, at least all of the ones I have seen, it says that the seller has the right to cancel the contract if they cannot find financing.
In California, there is a 10 day window for the dealer to assign the loan with a bank or rework the contract to fit what the buyer qualifies for. Most stores will run credit report and make their own judgement by virtue of the persons score.....I personally do not allow this at my dealership so there is never an issue. In todays electronic world you can get credit answers from banks within minutes in most cases...then you can apply the correct APR on the first contract.

[396_WAYS_TO_SPIT]

Well I bought a jag from a dealership(no names) and put x ammount of $ down. I clearly asked them if the deal was confirmed. The sales manager said"yes you dont have to worry about comming back". THen 2 weeks later they called and told me to come back to put more $ down. I told them that there were several issues with the car and they need attention. They told me "its a used car, if you want new then go buy a new car". Thats what pissed me off. I couldnt buckle my family in the car because the seatbelts in the back didint work:mad: Not to mention that the manager was very rude to me. I simply told him to just refund my $ and we will squash it. he told me that there is a restocking fee and they are keeping my down payment! I told them to provide legal documents that state this. He said that they didnt have any......
What do I need to do to get my $$$ back????

[Havasu1]

Well I bought a jag from a dealership(no names) and put x ammount of $ down. I clearly asked them if the deal was confirmed. The sales manager said"yes you dont have to worry about comming back". THen 2 weeks later they called and told me to come back to put more $ down. I told them that there were several issues with the car and they need attention. They told me "its a used car, if you want new then go buy a new car". Thats what pissed me off. I couldnt buckle my family in the car because the seatbelts in the back didint work:mad: Not to mention that the manager was very rude to me. I simply told him to just refund my $ and we will squash it. he told me that there is a restocking fee and they are keeping my down payment! I told them to provide legal documents that state this. He said that they didnt have any......
What do I need to do to get my $$$ back????
You may want to try the BBB. They do most of the lemon law transactions without an attourney I believe.

[delemorte]

Well I bought a jag from a dealership(no names) and put x ammount of $ down. I clearly asked them if the deal was confirmed. The sales manager said"yes you dont have to worry about comming back". THen 2 weeks later they called and told me to come back to put more $ down. I told them that there were several issues with the car and they need attention. They told me "its a used car, if you want new then go buy a new car". Thats what pissed me off. I couldnt buckle my family in the car because the seatbelts in the back didint work:mad: Not to mention that the manager was very rude to me. I simply told him to just refund my $ and we will squash it. he told me that there is a restocking fee and they are keeping my down payment! I told them to provide legal documents that state this. He said that they didnt have any......
What do I need to do to get my $$$ back????
molotov cocktail???

[Biglue]

Well I bought a jag from a dealership(no names) and put x ammount of $ down. I clearly asked them if the deal was confirmed. The sales manager said"yes you dont have to worry about comming back". THen 2 weeks later they called and told me to come back to put more $ down. I told them that there were several issues with the car and they need attention. They told me "its a used car, if you want new then go buy a new car". Thats what pissed me off. I couldnt buckle my family in the car because the seatbelts in the back didint work:mad: Not to mention that the manager was very rude to me. I simply told him to just refund my $ and we will squash it. he told me that there is a restocking fee and they are keeping my down payment! I told them to provide legal documents that state this. He said that they didnt have any......
What do I need to do to get my $$$ back????
I tend to buy cars a year or two old just out of hating to take the depreciation on a new car. Usually you get enough time to look the car over as much as you want and find issues with it. Then you sign an agreement as part of your paperwork that says in writting what they have agreed to pay to have fixed. You have be careful of dealership and their "as in no wwarranty" deals. Once you bought it, I think you're fairly focked. I don't see how they can not help out on the seat belts not working properly tho. Try contacting the owner. Good luck.
BTW, how the hell are you going to tow your boat? If you're going to tow it with a Jag, post some pics. LMAO.

[USCFAN]

molotov cocktail???
LMAO.....

[PHOTOGLOU]

I don't understand how the dealer can change the contract. Once signed, it is an agreement between the dealer and the buyer to transfer the ownership of the vehicle for $xx down and $yy per month. It is not the buyers fault that the dealer made a mistake and can't unload the loan, given that the buyer did not mis-represent his status. The dealer does have access to the buyers credit info and uses this to guage the buyers status. Will the dealer inform the buyer if the dealer is able to get a better deal than the one originally negotiated? Never had that happen or heard of it happening to anyone I know.
I have had the dealer come back after a day or two and ask for more money down. My response was the deal was made when I signed the contract, sorry no more money.
Article "K" on the contract.. Dealer has 10 days to "sell" the contract or recind... Sorry

[OverKill]

Mike IMO it's kind of like the Kachina Boats un sea worthty vessle. If they sold you a car that was un road worthty, like seat belts not working properly. I would call them on it, in fact it is an automatic ticket for not having your seat belt on. I also would tell them they need to as mentioned earlier buy down the interest rate. If that's the hold up.
Let me tell you every time my wife and I buy a vehicle, we go right to the fleet department. They work on a flat hourly wadge, not commision, or by sales volume. With all the deals the car manufactures are making these days, it's just as good to go new.
Also get yourself signed up with a Federal Credit union. They have interest rates that will beat almost every bank around, and is easier to qualify for a car loan.
Hope this will help
OverKill

[Some Kind Of Monster]

molotov cocktail???
:idea:

[396_WAYS_TO_SPIT]

BTW, how the hell are you going to tow your boat? If you're going to tow it with a Jag, post some pics. LMAO.
as of right now I could care less about the boat. Im just trying to get back into a reliable piece of transpertation. Ill worry about a tow vehicle when I get my settlement;)

[396_WAYS_TO_SPIT]

molotov cocktail???
Not a bad idea :D :D :D

[396_WAYS_TO_SPIT]

Mike IMO it's kind of like the Kachina Boats un sea worthty vessle. If they sold you a car that was un road worthty, like seat belts not working properly. I would call them on it, in fact it is an automatic ticket for not having your seat belt on. I also would tell them they need to as mentioned earlier buy down the interest rate. If that's the hold up.
Let me tell you every time my wife and I buy a vehicle, we go right to the fleet department. They work on a flat hourly wadge, not commision, or by sales volume. With all the deals the car manufactures are making these days, it's just as good to go new.
Also get yourself signed up with a Federal Credit union. They have interest rates that will beat almost every bank around, and is easier to qualify for a car loan.
Hope this will help
OverKill
I am with the credit union. They denied me when I was trying to purchase my denali......

[Boatcop]

I did a pre-approved Credit Union deal when I bought my first ('04) 'Hoe.
Did the same when I bought the '07, but Jay beat the interest rate by .5 points. Get pre-approved, but let the dealer (an honest one) try to beat it.
Sometimes they can.

[Oldsquirt]

Well I bought a jag from a dealership(no names) ....................... I couldnt buckle my family in the car because the seatbelts in the back didint work:mad:.......
What "didn't work" with the rear seatbelts? Was this car purchased from a Jag dealer?

[CBadDad]

molotov cocktail???
Excellent solution...
...but I like fire. :D

[cruser]

Article "K" on the contract.. Dealer has 10 days to "sell" the contract or recind... Sorry
Not in all states and certainly not on a contract I will sign. I have bought a few new and used cars in a few different states in my time, not a lot, but a few. I have yet to see such a clause in any of the contracts I have signed. I have no doubt though that this is a standard clause for contacts in common use in California. No dis-respect intended.
Why does the purchaser only get 72 hours while the dealer gets 10 days?

[Ziggy]

Not in all states and certainly not on a contract I will sign. I have bought a few new and used cars in a few different states in my time, not a lot, but a few. I have yet to see such a clause in any of the contracts I have signed. I have no doubt though that this is a standard clause for contacts in common use in California. No dis-respect intended.
Why does the purchaser only get 72 hours while the dealer gets 10 days? I mentioned the same clause as Jay but specified "In California". You also have a "no cooling off" period in California unless you pay for a 3 day 250 mile return option on used cars under $40k.....in other words you buy it, its yours.

[396_WAYS_TO_SPIT]

What "didn't work" with the rear seatbelts? Was this car purchased from a Jag dealer?
The car was purchased from a dealership that sell Jags,Benz,BMW,etc. The seatbelt wouldnt lock.

[396_WAYS_TO_SPIT]

Its all good. I ripped up the contract so they cant stick me with the car. They have no contract;)

[Antisocial]

I wouldnt take a jag to a rock fight.....

[Biglue]

I wouldnt take a jag to a rock fight.....
lol

[Caljamr]

When you buy a vehicle and do a "SPOT" delivery the dealership makes their best judgement on what terms the bank/finance company will purchase your loan at. If they estimate the correct interest rate and terms, you don't hear from the dealership at all. If they are incorrect, they do have the right to request that you agree to a change in terms and sign a new contract. At that point, unless the dealership wants to carry the paper on the loan themselves, you also have the right to cancel said contract/deal and get a full refund of any money you have given them for a down payment or deposit UNLESS you specifically signed a seperate contract about your down payment or deposit being non-refundable.
The last option the dealer has is to buy down the interest rate with the bank to keep you in the vehicle with the same terms you originally left their dealership with. This obviously means they will be writing a check to the bank to keep the deal together. All in all, you just need to understand that if it is the car/truck that you want, telling the first dealer to pound sand ,give the car back, and get your down payment back might not be the best way to go if you plan on going to another dealer to try and buy a similar vehicle. You would just be starting over from square 1 with the second dealer and ultimately end up in a similar position if not exactly the same position as the first with twice the work. Try and work it out with the first dealer.
TCD
Exactly. I purchased a Z71 in California and the next day went to Lake Tahoe on a week long ski trip. Monday they called me saying they need more money down and rewrite the contract. I said no and that i'll bring the truck back in a week. They weren't happy about that but i believe in Cali you initial a box on the loan that says if they can't abide by the contract you have the option to return the car.
Good luck

[talkinghead]

These issues are the reason I buy only at Carmax - no surprises at all.
All of this will not happen at Carmax.

[suckin&pumpin]

this happened to me 2 years ago, after 7 days they called me in, when I refused to agree to a higher rate, we went round and round but in the end they lowered the selling price to compensate for the interest hike resulting in the same payments for the same term.

[meaniam]

I don't know about AZ laws. But in Ca. a dealership is unable to fund a loan according to contract. trades/ down payments have to be returned.
A contract is a contract. If dealership cannot honor contract customers money has to be returned. And customer must return car. I don't know about ripping up the contract. What good did that do. Unless they refunded all your cash.
The only way I see a down being held is if car is damaged. No restocking fees, No hit on mileage. But you cant keep a car beyond reasonable period of time a dealer ask to unwind.

[ULTRA26 # 1]

Its all good. I ripped up the contract so they cant stick me with the car. They have no contract;)
Michael,
If the dealer has no contract how would you expect them to obtain finance????
I thought the return of your down payment was the issue here. For future reference, it is never to your benefit to rip up a contract unless it's at the time of signing and all copies are destroyed. Without knowing all of the specifics, I would suggest that you ask your Attorney for some advice. Sounds like a mess to me.
John M

[396_WAYS_TO_SPIT]

Michael,
If the dealer has no contract how would you expect them to obtain finance????
I thought the return of your down payment was the issue here. For future reference, it is never to your benefit to rip up a contract unless it's at the time of signing and all copies are destroyed. Without knowing all of the specifics, I would suggest that you ask your Attorney for some advice. Sounds like a mess to me.
John M
They had a contract. I left with the vehicle and they called me 2 weeks later talking smack and being rude. They wrote up a new contract and changed the terms. I wasnt going to sign it unless they lowered the price of the vehicle. Then they got extremely rude,rejected my refund so i ripped up the contract..........
Im calling to police to day and report them for fraud....

[squirt'nmyload]

I'm surprised there haven't been 30 posts telling you to just pay cash.
or to tell you to just give em tha boot to tha chest :D

[BadKachina]

I'm surprised there haven't been 30 posts telling you to just pay cash.
What he said. Just pay cash...........:)
Seriously, you don't have to buy it and they have to give your trade or cash back if you don't want to agree to the terms of the new contract.
When I bought my Ford I had to basically tell the finance guy to go f himself because he wouldn't let me sign the contract without purchasing his service contract. We argued for a good hour, he brought his team in, his boss, my sales guy, the manager, I think I spoke to everybody in the building that night including the janitor.
I gotta say, they finally broke me down and I bought it...........:(
I just wanted to leave at that point. I wish they would have called me back.

[Jbb]

Jbb had that problem with a Jeep...:idea: We all know how he handled that one.:jawdrop:
You gotta know when to hold em.....and know when to fold em....:D

[Baja Big Dog]

Article "K" on the contract.. Dealer has 10 days to "sell" the contract or recind... Sorry
The question was the down payment.....if the dealer exercises his article K rights, the down payment has to be returned, correct?

[cave]

Dam bro sorry to read this. Sometimes you got to tell them calmly, You ever here of the internet? You dealership is gunna be all over it! :idea:
Contact the AZ Attorney General. Terry Goddard via email. They will investigate.
Also there is complaint.com
Back in the Service days people would always through that at me and corporate would go apes sh!t and tell me to settle. There a few more also.