We traded in our car last week at a local Honda dealer. Everything went fine but I got a call this morning

Question

They where asking for 5000$ in down payment. I said I did not have that much money. When we got there they said that I was approved for no money down and we left with the car. Now they want me to return this new car. I fell in love with the new car but I do not have a choice but to return it. My question is, is there any way other from putting down 5000$ to keep this car or if I do not have a choice will I be able to receive compensation? Am I late for my monthly payment? (I was supposed to pay for my old car on the 1st) and how would this affect my credit score?

Answer 1

It sounds as though you were sent home with your new car without having financing secured by the dealership. They've probably run your paperwork past a dozen lenders and the only way you can get financed is by putting down a large down payment. It's too bad they do this, because this is what can happen. Not everyone can qualify for no money down, as you are finding out. Why should you receive compensation? It isn't the dealerships fault they could get you financed, that's a result of your credit situation. No, you can't keep the car.

Answer 2

If $500. dollars would keep you out of the car, they don`t won`t to sell it very badly, DON`T pay it, call and tell them you are returning it, only speak with the general manager, he might relent.Also call and ask your car finance company about the payment on your trade-in, explain the situation, and write down the name of the person you spoke to.As for compensation, I doubt it. Do you have an attorney friend you could ask? Hope it works out!

Answer 3

If you used your old car as trade-in, then you didn't have to pay for the old car payments since your old car was technically "SOLD" to the dealer and they would pay the agreed trade-in value to the old car's lending bank. You, of course, would be liable for the difference. Then you would have the choice to roll in that difference into the new car or pay it up front as part of a "down payment". I'm guessing that wasn't really how it went. And I'm also guessing you leased since no one should do "no down payment" on a purchase.

Now I suspect that you're being asked for $5000 because you either owed more on the old car than than they thought you did, OR you didn't qualify for financing. If where you, I would return the new car, get your old one back and get yourself a new deal. Your credit will probably get hit because the dealer probably ran your credit all over the place to get a loan.  Make sure you return the car though, or things will get more serious. A car is a car at the end of the day, don't fall in love with metal and rubber.

Answer 4

If you read the fine print on your agreement when you picked up the car, the sale is not final until they get the final approval on your financing.  The lender came back and required the $5K to make the deal acceptable to them, so there is no choice.  Their decision is based on credit and the amount of risk they are willing to take.  Obviously they want $5K worth of comfort built into the deal, (plus that would make the payment lower and easier for you to keep up with.)  You have to pay the down payment or there is NO deal.  

As to compensation, are you kidding? or what???  You want to be compensated for disappointment and for not having good enough credit to get the car with zero down?  Not very likely.  They are not going to compensate you for driving around for a week in their new car, (for free.)

As for the payment on the vehicle you still own, of course you still owe it and if you are late you better get busy and get it paid.  If it shows as a late payment on your credit reports it will make it even MORE difficult and more costly for you to get a deal on something later.  

I would call the lender that you owe on your current vehicle, explain the situation to them and see exactly where you are.  You may need to hand deliver or express mail your payment depending on the terms of your loan.

Answer 5

Is there any kind of a legally opposing document issued by the dealer saying you're approved for no money down?!

If it is you can definitely sue them.

With a good lawyer you can win, I'm sure.

You should check with an attorney in any case...