I traded a vehicle in for a new car from the dealer, but am running into problems.?

Question

I traded my vehicle in and drove off with a new car. The dealership gave me what my monthly payments are with no money down and no payments for 90 days. But I just got a letter in the mail from the bank saying the loan didnt go through. I'm confused on what this means... do I return the car and ask for mine back? What if they've sold it already am I out of a car or do they have to give me the money back for my trade or get me into another car?? Please help.

Answer 1

Bottom line.....you signed a contract. What does that say about financing? Go back in and see if they can help you get financed through another lender, or, find out what options you have. Good luck to you!

Answer 2

This happened to me im sure the dealership will call you and they will find somebody else to finace you else they lose alot of money on the deal

Answer 3

A friend of mine had a similar experience about two years ago when he traded in his old car for a new car. After signing the contract documents, he droved off, only to be contacted about a week later that the loan didn't go through.

After explaining this situation, I decided to accompany him to the dealer’s office, in Virginia, USA. The dealer explained that my friend's loan application was declined by the bank because his FICO score at the time was 570.

My friend then asked the dealer what were his options: Should he return the new car and collect his old car since the deal didn't go through….The dealer interrupted, saying that he would forward my friend’s auto application to other lenders to see what could be done.

Two weeks later, my friend was contacted by the dealer who asked him to come to his office for update on his auto loan. On reaching the dealer’s office, the dealer told my friend that he had found a new lender for his auto loan but that the interest rate almost doubled the one he had signed on the loan application.

Giving the above scenario, the question then comes: Isn’t it the responsibility of an auto dealer to ensure that an auto loan application goes through before allowing the buyer drive-off the car?

My advice to you is this: If the dealer gives you a higher interest rate, that is, far more than the one you had earlier agreed to, and signed for, please, don't accept. Insist on the interest rate that was given to you earlier (or on a more moderate rate, not on a doubled rate).  If the dealer is unwilling to accede to this request, insist on taking his company to court for not checking to make sure that your auto loan application goes through before allowing you sign the contract documents and driving-off the new car.

The further truth here is that once a contract has been signed, sealed and delivered (as in your own case) it is binding.  A new agreement can only be drawn (or amended) unless the parties involved mutually agreed.

Good luck!

Answer 4

I reckon the dealer will contact you 'shortly' and arrange alternative payment...he wants to sell cars as much as you want to buy one....best of luck...

Answer 5

It doens't necessarily mean you were actually declined.  We also got a letter from GMAC saying we were not qualified when we actually were.  If you were, in fact, declined, the dealership may offer you another option.  You are not obligated to accept the new deal!  Stick to your guns and tell them you will only accept the exact deal as you originally agreed to.  If they cannot make that same deal for you, they have to either return your car, or give you a check for the amount they gave you for the trade.  Don't let them bully you!  Some dealerships are not reputable and will try to send you off with a new contract with higher interest rates and higher payments.  If they get you a new rate that is less than 1% higher, you may want to consider accepting that offer, but try to get the original deal first.  Good luck!

Answer 6

Take them the car back and they have to give you yours back.

Answer 7

Why don't you tell us what the LETTER SAYS to do.  I am very curious about this.

Surely, when they sent the letter, they must have asked you to do something.

Answer 8

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