I got a new car on Sep 28. I traded in my car and the difference from the price of the car got added onto my new car price. Yesterday they tell me they couldn’t find a bank to finance me and wanted me to resign a new contract with 9.5%, up from 6.9% they quoted me. I heard other say that the dealers want to take the car back, but with me the dealer wants to keep it. It seems they will be making a killing of my trade in since it has a sound system, rims, and new lighting. So they are trying to get me finance. I don’t want to deal with it anymore. Can I just go in there and get my old car back, or better yet have them keep my old one too! I called my bank and so far it has not been paid off, so I assume they were waiting to see if the loan went through for the new car before they pay off my old car. I am afraid that they might keep my old car since I signed away liability, and me keep the loan since I see nothing that says that they will pay it off and they added that old car’s price onto the new car’s loan. What to do?
Ok, I went back to the dealer and after about 3 hours of them actually giving me a better deal I got my old car back. The reason I kept it instead of other deal is cause they lied to me 3 times. Anyways, I forgot to ask about my down that I placed on a CC. I should be able to get that back right? Also, they took back all the paperwork. I still have a copy of the main contract. And to get my old car back they just made me sign a release of liability form. They said that is all that was needed and all the rest was voided. So I don’t need to worry about the DMV, bank, or anything for ownership of my old car? I am worried I might get screwed out of my car or they will keep the 600 down.
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{ 3 comments… read them below or add one }
If you don’t sign the new contract you can return the car unless you signed a form stating you would secure financing in the event the dealer could not get it approved. They spot delivered you and now they have a problem. Get your trade back and go on. I would contact a local bank or credit union and see if you can get preapproved for a loan it would be better for you.
On the back of the contract you signed, you’ll see a phrase exactly like or very similar to: "Contingent upon bank financing". In other words, if the bank does not sign off on the loan, there is no deal.
Go get your car back, and restart by getting pre-approved for a lower rate first. If the bank has not signed off on the deal, then your trade-in still belongs to you. You don’t just walk away from a negative equity trade-in. To add, your car having a sound system, rims, and lighting is actually a negative to car dealers. Vehicles like that are hard to sell, and do not bring more in resale. Nothing adds to the value of a car. You can gold-plate the whole thing, it’s still worth book value. The dealer can tell you anything he/she would like. My guess is that you’re being told this in order to keep the deal going.
OR — Go back, tell them you’re not signing any deal that’s not 6.9%, and see what happens. If they cannot honor that, then get the keys to your trade-in and drive away.
(**Note — you didn’t "sign away liability" on your vehicle. You signed a power of attorney form that gives the dealer the rights to your car and the right to transfer the title, PENDING BANK FINANCING and completion of the deal.)
You can definitely get your other car back. Don’t let the dealer pressure you, threaten you or try to make you feel guilty. You older car is still yours. The new car still belongs to them. The loan was never funded. That means the contract you signed is void and unenforceable. It no longer exists.
The papers you signed transferred liability to them but DID NOT transfer ownership to them. The only way that could happen is if they got the deal bought by one of their lenders at the rates printed on the contract. That would then allow them to pay off your car. None of that happened. The dealer can NOT pay off your car since the lender did not pay them.
As for transferring liability, all that means is that you were no longer liable for the car if it got a parking ticket, was involved in an accident or got towed while in their possession. If the dealer tries to weasel its way into keeping your car, go to the police immediately. They’ll get it back for you.
You’re showing some very good judgment in not wanting to sign a new contract at 9.5%. That would greatly increase your monthly payment and total finance charges.