If I bought a used car but 2 weeks later still don’t have a bank approval for a loan, can I return it and will I get my down payment back?

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If I bought a used car but 2 weeks later still don’t have a bank approval for a loan, can I return it and will I get my down payment back?

I bought a used car (my dad’s name and me as co-signer)’ we have bad credit. What if the dealership finds me a bank and wants me to sign another contract with much higher rate again?

Asked on April 9, 2012 under General Practice, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

I presume that the purchase conttact that you have for the car you purchased has a set interest rate for a period of time prpeared by the auto dealership. If so, and without seeing the actual document for the purchase of the car that you have written about, it would appear that if you cannot get a loan at the agreed upon interest rate and term with the dealership that you can return the car and cancel the purchase.

The result would be some fair rental for the time you had the car in your possession. The key is to carefully read your purchase contract in that it controls the obligations owed to you by the auto dealer and vice versa.


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