If a car loan never went through at the bank but I have vehicle in possession, can i return the vehicle?

About a month ago I made a car purchase with my mom being a co-signer, due to my credit. I was waiting for a letter in the mail from the bank so that I could make my first payment. However no letter came, so I called the bank and found out that the loan never went through. They car lot said it was a signing error and we just need to come back in a re-sign the loan papers. However I don’t feel that I want to resign the papers and I would rather just return the car? That being said: is that possible; can I get my $1000 down payment back; if my trade-in was not sold yet can I get it back?

Asked on July 18, 2012 under Bankruptcy Law, Indiana


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Whether or not you can return the car that was purchased without recourse depends upon what the purchase contract states. As such, you need to carefully read it to determine whether or not the purchase of the car was subject to a loan being made within a certain period of time.

Given the fact that the car is in possession of you and your mother, I suspect that you will not be able to return the vehicle. I suggest that you consult with an attorney that practices in the area of consumer law for further questions that you may have.

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