What to do if car loan is denied after accepting delivery of the car?

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What to do if car loan is denied after accepting delivery of the car?

I bought a car 2 weeks ago. Now the dealership has informed me the finance company is saying they will not finance my car. Can the dealership just pick it up? Should I sign something releasing the car? Should I wait until I receive written documentation from the FC stating they will not finance before I give the car back? I was told the FC has a new policy that the signer and co-signer must have a TX driver’s license; we do not. All of this after the contract has been signed.

Asked on April 27, 2011 under General Practice, Texas

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You are wise to be cautious with this matter.  I would absolutely not give anything back until you have papers signed releasing you from any contractual obligations and indicating the it was not a breach on your part that caused the termination and that you have no liability on the contract from that moment on.  Also, make sure that when you do turn the car back in you get a receipt for it. I would not "sit and wait" for things to happen but rather be pro-active by starting the ball in motion to return it.Call the finance company.  It sounds so ridiculous that you went through the entire process, signed the contracts and are then refused financing.  Good luck.


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