Can a car dealer change the APR/payment terms once paperwork is signed and a purchase made?

I just purchased a new car and signed all of the paperwork at a certain APR with a certain payment listed and now, a week later, the dealer is telling me that the APR and payments will be higher than what we agreed upon. Is this legal?

Asked on July 21, 2012 under General Practice, Colorado

Answers:

Terence Fenelon / Law Offices of Terence Fenelon

Answered 8 years ago | Contributor

You would have to read your paperwork carefully.  Many times, a dealership will quote an APR based upon the assumed creditworthiness of the borrower at the time the financing is agreed upon.  A potential or eventual lender might not agree to the same terms if there is a problem with your credit and bump up the rate.  You may, depending upon state law, have the option of cancelling the transaction and giving the car back.


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