What to do if the finance company says my loan was denied but the dealership says it wasn’t and now I don’t have the car or the $5,000 I put down?

UPDATED: Mar 3, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Mar 3, 2012Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What to do if the finance company says my loan was denied but the dealership says it wasn’t and now I don’t have the car or the $5,000 I put down?

I purchased a car about 3 weeks ago from a dealership. The whole purchase and process has been hectic and screwed up from the beginning. Needed a cosigner. Used my dad. He somehow got placed as “owner/main applicant”. I am cosigner. I called Finance company yesterday to check loan status and was told the loan was denied and to take the car back to the dealership and get my down payment back. Dealership says the loan was not denied and I cannot leave with the car unless I tell the finance company I want the car. And I will be charged for the time I had the car out of my down payment.

Asked on March 3, 2012 under General Practice, Tennessee


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If your purchase contract for the car you are writing about was subject to a condition of you getting a lon for it and the loan was denied, then you should be able to return the car to the dealership and get your money back. As such, you need to carefully read the purchase agreement for the car.

For the dealership to let you take the car off the lot without having a loan in place does not make a whole lot of sense. I suggest that you go back to the dealership to discuss the situation with its manager after you have carefully read your purchase contract. If you do not have a loan in place for the car, how will the dealership get paid for it?

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 AttorneyPages.com 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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption