What happens if an auto finance company denies you after you already have the car?

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What happens if an auto finance company denies you after you already have the car?

My husband and I got a car last month. We were told everything was okay but today we received a letter for the lender saying they did not approve our loan. We have already payed $1000 down, plus our trade-in and we just paid the sales taxes on the car.We do not want to let the car go; we want to keep it. Do we need to find a loan elsewhere to make sure we secure the car? We both have okay credit and we both work full-time.

Asked on June 18, 2012 under General Practice, Wyoming

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you obtained the motor vehicle with a spot delivery (keeping the car is contingent on financing), you must either obtain financing on your own and show to the dealership or return the motor vehicle, and you get back the car you traded in, the down payment and the sales tax. It becomes a null and void contract and everyone has to go back to where they were before the contract.


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