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?

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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

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 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?


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