Can I Return A Used Car That I Signed For & Gave Down Payment For & Havent Been Approved For By Loan Company

Posted in Used Car Loan | Asked on Jun 26, 2010

I just called the bank that was on the “contract” i signed with the dealer and i have been declined, since i am not going to be paying monies for the vehicle to this bank can i try turning in the car on the grounds that the contract is between me and that bank???

There are 6 Answers for "Can I Return A Used Car That I Signed For & Gave Down Payment For & Havent Been Approved For By Loan Company"

  1. ideratherbefishin says:

    You should not even have the car if your loan has not gone through…return the car but the dealership is probably going to give you a hard time with your down payment.

  2. Mike B says:

    Would depend on the state and the wording of the sales contract.
    You may need to forfeit some or all of the down payment.

  3. Janet says:

    If you signed contracts with the dealer and took the car, then if they find financing, you have to keep it. Once you drive it off the lot, its your unless they can’t get you financed. When you sign spot papers, that means that unless they can’t get you a loan, the car is yours. Why would you want to return it?

  4. Vince M says:

    Frankly, no, unless you bough it from a very unique car dealer. If you signed for the car and have the ownership transferred to you, then you are finacially responsible for paying for the vehicle.

    Something about this deal sounds vary shady. I don’t understand what kind of reputable dealer would sell you a car without checking on your ability to pay for it. How were you trying to finance it? Was it someone at the dealership that offered to find a lender?

    If it was, then you may be the victim of a scam. The dealer promises to get you financing at one interest rate, and then, when the “lender” does not approve your credit, the dealer, who has no obligation to take the car back, will find ANOTHER lender who WILL finance you at a higher rate. It’s possible that the dealer is getting some kind of “kick back” from the lender, for steering you to the higher interest loan.

    There is nothing, legally, wrong with a dealer that helps you find financing, or, even, financing the purchase himself. But a legitimate dealer would make sure you had the ability to pay BEFORE you signed for the car.

    In your case, it looks like you can, either, continue to be taken for a “ride” by this dealer, and sign whatever loan papers they put in front of you, or, you can find some other way to pay for the car, including finding your own lender. In either case, you probably cannot return the car. (why should the dealer take the car back? They SOLD you the car. They don’t want to give you any money back)

    The only other option is to let them repossess the car for non payment. They take the car back, but you STILL owe them the money. AND you ruin your credit in the process and it will be a long time before ANY lender will finance a car, credit card, home, etc, for many years to come.

  5. thorno74 says:

    Apparently Vince M. has no idea what he’s talking about.
    Dealers frequently place customers in vehicles before the financing is done. It’s called being spot delivered.
    Imagine your credit score is 800. You find a car at 3pm on Saturday that you want. The banks are closed and you want the car now. Since there is little chance that the bank will turn down the deal, the dealership “spot delivers” the car knowing everything will be fine come Monday morning.
    However, there are times when a person is borderline the same technique is used. RARELY does this happen when the finance manager is doubtful that the deal will get approved.
    As far as a down payment goes, you are legally entitled to a 100% refund. A downpayment is used to lower the financing total in order to lower you payment. The dealership has no right to it.
    BUT, if you put down a deposit–not a downpayment—you are subject to the terms in which the deposit was made.
    You agreed to buy the car at the terms that were discussed. The dealer was unable to secure financing and live up to THEIR end of the bargain. Therefore, they forfeit any interest in the deposit and must return it to you.