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

Answers:

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.


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