Can a car dealership legally increase my monthly payment after I’ve already signed the agreement?

I recently leased a vehicle with a co-signer and we signed all the papers almost a week ago. However, now they’re calling and telling me that the credit wasn’t approved so I have to go back in and resign papers and my monthly payment could increase if I don’t put more money down. Can they legally increase my payment after I signed all of the documents?

Asked on June 1, 2012 under General Practice, New Hampshire


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

I hate to throw this back in your lap but you need to read the agreement that you signed.  DOes it state that it is "subject to" approval for the financing?  If it does then there may be cause for the new agreement.  It may also give you the right to cancel the contract which you may want to consdier.  You are right that generally speaking, contracts are binding but I get the feeling here this was was contingent upon your being approved.  Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.