Who is responsible for a vehicle if financing falls through?

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Who is responsible for a vehicle if financing falls through?

I purchased a vehicle, or at least I thought I was however it seems like the dealership was trying to pull the okey doke and didn’t follow through with financing. The vehicle was totaled in an accident before financing was secured. I was paid X amount by my insurance but it does not cover the amount on the contract. Can I still be held to the terms of that contract or can I renegotiate some of the terms of the contract. For instance, sales tax and all the other fees, the financing was never complete so essentially I never bought the car?

Asked on September 24, 2018 under Business Law, Maryland

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

No, if you signed the contract to buy the car, it is yours and you are responsible for it. Your obligation is to pay for it *somehow*. If the predicted or expected financing fell through or wasn't completed in time, you'd have to look for an alternative way to pay for it--the failure of financing does not void or terminate the contract. So you are still responsible for the full cost of the vehicle, including mandatory fees and taxes


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