Community Forums

New Hobby · 06-02-2015, 09:38 AM

Is there any legal action to be had if a dealership runs your credit
(736), negotiates a deal with you, takes your deposit, says congratulations, puts a sold sticker in the windshield, you sign a complete contract, they say ready for pick up in 2 weeks after their PDI and safety check then they cant get you financed?
Doesn't seem right to me, this is what they do everyday.

Big-Foot · 06-02-2015, 09:43 AM

Sounds like a case for your State's Attorney General's office.
Rights do vary from state to state, but in my state, if the financing falls through, you get your deposit back and the deal is off the books. I don't know how they can report you to the credit bureaus for bad credit when credit was apparently never established in the first place.

**CLIFFTALL** · 06-02-2015, 09:44 AM

Sounds like they got a better offer. :(
I'd want a better explanation .

Knightab · 06-02-2015, 09:47 AM

Sounds like a camping world experience

MaverickBBD · 06-02-2015, 09:57 AM

Did they mention you were 'approved' for financing? There is probably a contingency clause in there somewhere. Otherwise probably not.

oakcreekeric · 06-02-2015, 10:00 AM

Not sure what your recourse is... However... that unit is yours until you get the deposit back..

Not sure where you're located.. but a call to the Attorney General's office would be a start... and I'd let the dealership know what you're doing.. As a person who previously worked at an Auto Dealership (many moons ago).. there are two people a dealer principle doesn't want snooping around his lot.. and that's the Attorney General's office and the Insurance Commissioner's office..

IF they are trying to "scam" you due to a better offer, as someone suggested, you could "screw up" their deal by telling them you still want it and will attempt to secure your own financing... Just let them know you want the deal continued "CONTINGENT" upon you getting financing.. I would suggest putting a time limit on it... lets say 7 days... IF they tell you no, chances are, they may have gotten a better deal..

Truth be told.. you may have better luck trying to get financing thru your Bank or Credit Union..

Good Luck !!!

plasma800 · 06-02-2015, 10:09 AM

Further, contact Jim Pena at Essex Credit, and see if he can get your financing done. He's FAST!!!!!! If he can get it quickly, then you might could salvage the deal.

A lot of dealers work something like this.

Check his credit. Good? Yes?
->
Take his down payment money. Money good? Yes.
->
Put his paper out to 15 banks, choose bank with best kick to dealer.
->
No banks took it? Kill the deal.

They are essentially "assuming" that some bank they work with will buy the paper, but if for some reason the banks decline to take your paper, they just kill the deal.

half of that fictitious 2 week PDI is time the finance guy schmoozes your assumed loan out to the banks they use, and it takes a little time.

He promises you a rate of whatever, 4.9% - then he sells the paper at a rate of 3.9% - 4.6% whatever, and he keeps that interest in the middle.

wa8yxm · 06-02-2015, 03:54 PM

Most vehicle dealerships are governed by the department of motor vehicles,,But if that is the case a call (or letter) to the Atty General will get you a form response to contact DMV.

This is a popular "Bait and Switch" game... Sign a contract then call you back and say "oh we could not get financing at that rate it's going to cost more".. It is illegal.

However Can you fight the battle and win? That I do not know.. Dealers who do this stuff have lawyers who advise them on how to get away with it.... Sometimes.. they fail.

IF you start legal action please mention it.. Some forums (not sure which ones) once the court case or official investigation starts... The thread will be closed.. I fully understand the reasons for this by the way.

KerrTx · 06-02-2015, 07:16 PM

Who was the dealer?

WSRG · 06-02-2015, 07:36 PM

I'm sorry that this happened, but this is the way almost all motor vehicle dealers work. You did not mention whether your deposit was refunded. It is fairly common for some banks to want more money down than what was noted on the contract. In this case ,it is your option to say yes or no to the new terms. If you say yes, a new contract would be signed, and you go down the road with your new vehicle. If you say no to the new terms, the contract is voided, your deposit returned, and the deal is done. Keep in mind that in most states, no matter what is signed or said, you don't own the vehicle until you take delivery. That is, drive it away from the dealer.

Bill

SteveLevin · 06-02-2015, 10:20 PM

As others have said, as long as they give you the deposit back, you don't have any recourse. Even if technically you had some recourse, any reasonable attorney would tell you that, practically speaking, you don't want to bother.

Practically speaking, if they could roll the deal, they would. They don't make money sending you away.

Steve

Mr_D · 06-02-2015, 10:40 PM

736 is not that great a score BTW.
And yes the dealer did exactly what most dealers do. If you got your deposit back then you really have no damages.

Tha_Rooster · 06-03-2015, 05:32 AM

Ask for if you don't receive a letter from the company that turned you down for the loan.

Jim28730 · 06-03-2015, 07:45 AM

There is no recourse. The dealer did exactly what he should have done and it's not his fault that the banks they reached out to would not take the paper. As long as you have your deposit back, no harm...no foul.