If my car loan was rejected after I already received the car, can they take it back?
Question Details:
I was approved for a car loan 9/27/10, signed the contract, and picked up my new car. However, on 10/18//10 the same bank is now requesting that I show $300 per month of additional income. Can they take the car even after I signed the contract stating that I was approved?
Car dealerships when working with motor vehicle loan lenders, have two methods whereby a consumer can drive away with the vehicle the very same day. Either the consumer obtains financing immediately or comes in with a check ready to purchase or the consumer signs a document allowing the consumer to take possession of the motor vehicle with the understanding that the consumer must immediately return said vehicle if financing is not able to be obtained. In your situation, you were apparently approved for a loan (make sure you have your retail installment contract to prove it) and got the vehicle but now the lender has thought it may have made a bad deal. In essence, it is trying to subject you to additional proof of income when you have already entered into this agreement. There are quite a number of contractual implications (like potential breach of contract on the lender's part or even anticipatory repudiation) and quite a few outside of contract law (like detrimental reliance -- you relied to your detriment on this deal). You should immediately contact the entity who regulates your retail seller (banking department or attorney general) and file a complaint. The lender cannot now ask you to bring additional monies to the table.
