Can a dealership change the terms of a contract on an automobile after both seller and buyer parties have signed contracts?

On the 23rd I bought a car from a dealership. They said I was approved for a set amount through the bank which would finance my car. I agreed to the percent interest rate, monthly payments and term that was outlined in the contract. On the 27th the dealership called me and said that the bank financing my car wasn’t going to except me for a loan. The dealer said he could get me financed somewhere else but there would be a higher interest rate. I don’t want to keep the car if my terms are going to change. I signed and agreed on the ones stated in the contract.

Asked on June 27, 2012 under General Practice, Kansas


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Under the laws of all states in this country a car dealership cannot unilaterally change the terms of a written contract between the seller (dealership) and the buyer. That is why there are contracts to memorialize the agreement between the two parties on an item that was negotiated for.

The problem is that possibly your purchase of the car was subject to you getting a loan on stated terms which did not happen. As such you need to carefully read the terms and conditions of your purchase agreement in that the document sets forth the obligations owed to you by the seller and vice versa. After that, you should consult with an attorney that practices in the area of contract law if you have further questions.

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