I purchased a car from a large dealer two weeks ago and I have received letters today saying I am declined for a loan. What happens next?
My trade in was paid off by the dealer within days of the purchase and that vehicle has since been sold to someone. I am receiving multiple letters saying I am declined from lenders, hence my vehicle is not financed and a payment is due within 3 weeks based upon the contract I signed when I purchased the vehicle. What happens next? What if the dealer can’t find me approval? I am in Florida if that helps.
- DaveLv 55 months ago
Without knowing what the contact says there is no way to determine what happens. Read the contract, it very likely covers what happens if you are unable to obtain financing.
- don rLv 75 months ago
Write back to them demanding your down payment be returned or work harder getting financing. There has to be a good reason they're messing with the contract you both agreed to and signed. Demand they tell you why the financing isn't going through- in writing.
- Anonymous5 months ago
Well, you are in possession of the vehicle right now. As for purchasing it, that has not happened..and if a lender cannot be found then you have to return the vehicle. Most times these vehicles never leave the lot until a lender is assured. You would still be driving your old beater. No lender means no one loses. You just can't have what you want.
- ElGrandeLv 75 months ago
TheReal is 100% correct, and this is coming from my experience in the industry as well.
All of the other "call a lawyer, oh my God" answers can get bent.
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- KayleenRLv 75 months ago
If your loan has been declined, you have to give the car back or find the money. You are doing everything **** about face here, get your loan organised, then find a car
- TheRealLv 55 months ago
The dealer submitted you loan application to numerous lenders. Any time a lender denies a loan application, by law, they have to notify you in writing as to the reason for the denial. The dealer will not pay off your car unless they've been funded for the deal. Therefore, if your trade is paid off, then the deal was funded, and the loan is done. If the dealer couldn't get you bought, they would have contacted you within days to either 1) come up with more money down, 2) come in and resign with different terms, or 3) return their vehicle. Relax, it's your car...Source(s): 20 years retail auto sales experience.
- AlCaponeLv 75 months ago
You apparently have credit or income issues, or both, such that the dealer cannot find a finance company or bank who will finance your car loan. He might be still trying but it appears he's likely not going to have any luck,
What does this mean? It means you either find financing on your own (very unlikely) or you return the car to the dealer, since it's still his car and hasn't been paid for it -- regardless of what you signed. You don't owe a payment because there is no finance company or bank to send it to.
As for your trade-in vehicle, if it's been sold already, the dealer owes you the money for it. He can't get it back.
The lesson to be learned here is that if you know you have credit or income issues, do not accept a dealer's offer to let you have the car. Wait until you receive notification that your loan has been approved.
- Mr.357Lv 75 months ago
Sounds like you will have to find some independent financing.
- Anonymous5 months ago
The dealer should have known if you were approved for a loan before selling and handing the car over to you. You also should have known whether you would qualify for a loan or not. You know what your financial situation is.
But, yes, the dealership’s remedy will be to repossess the car.
- DavidLv 75 months ago
The dealer will repossess the vehicle.