Question regarding car purchase....hoping it's not a SCAM!

[KvnDBrwN]

What is the name of your state (only U.S. law)? California

Can a car dealership ask you to pay more monthly for a vehicle and raise the interest rate, after you have the vehicle a couple of days in California?

I purchased a vehicle at 11% interest, with $1000 down @ $320/month. The car company calls me 5 days later and says that I was approved for financing. but at 13% interest, with $1000 down and $378/month. Is this legal? I have a contract with them stating the original terms, but now they want me to hurry to come in and get this taken care.

 

[LdiJ]

What is the name of your state (only U.S. law)? California

Can a car dealership ask you to pay more monthly for a vehicle and raise the interest rate, after you have the vehicle a couple of days in California?

I purchased a vehicle at 11% interest, with $1000 down @ $320/month. The car company calls me 5 days later and says that I was approved for financing. but at 13% interest, with $1000 down and $378/month. Is this legal? I have a contract with them stating the original terms, but now they want me to hurry to come in and get this taken care.

I hope that someone local to CA will know the answer to your question. I know that in at least some other states, it would not be possible for a car dealership to successfully do that.

 

[Zigner]

Read your contract - you will see that they have a certain time-frame in which to do this. I believe it's 10 days...

 

[Antigone*]

What is the name of your state (only U.S. law)? California

Can a car dealership ask you to pay more monthly for a vehicle and raise the interest rate, after you have the vehicle a couple of days in California?

I purchased a vehicle at 11% interest, with $1000 down @ $320/month. The car company calls me 5 days later and says that I was approved for financing. but at 13% interest, with $1000 down and $378/month. Is this legal? I have a contract with them stating the original terms, but now they want me to hurry to come in and get this taken care.

This is perfectly legaly. You do have the option of completely unwinding the deal or paying out the contract by obtaining your own financing.

 

[sandyclaus]

What is the name of your state (only U.S. law)? California

Can a car dealership ask you to pay more monthly for a vehicle and raise the interest rate, after you have the vehicle a couple of days in California?

I purchased a vehicle at 11% interest, with $1000 down @ $320/month. The car company calls me 5 days later and says that I was approved for financing. but at 13% interest, with $1000 down and $378/month. Is this legal? I have a contract with them stating the original terms, but now they want me to hurry to come in and get this taken care.

Many dealers practice SPOT DELIVERY, which effectively has you sign a contract and drive the car away. Then, they will come back several days later and tell you that they were unable to obtain financing at the agreed upon rate. You are told that you need to come up with a larger down payment, agree to a higher interest rate, or come back with a co-signer. They are counting on you having fallen in love with the car by that time and giving in to their demands. Read more here about it: http://www.edmunds.com/car-loan/dont-fall-prey-to-spot-delivery-scams-and-yo-yo-financing.html

In California, the law gives the dealership 10 days to find financing according to the contract terms. If they are unable to do so, they have to notify you before that 10 days is up - and you have the choice of accepting the new terms, or returning the vehicle. If you return the vehicle, they must return your down payment and any trade-ins, but they can charge you fees according to the contract.

 

[Antigone*]

Many dealers practice SPOT DELIVERY, which effectively has you sign a contract and drive the car away. Then, they will come back several days later and tell you that they were unable to obtain financing at the agreed upon rate. You are told that you need to come up with a larger down payment, agree to a higher interest rate, or come back with a co-signer. They are counting on you having fallen in love with the car by that time and giving in to their demands. Read more here about it: http://www.edmunds.com/car-loan/dont-fall-prey-to-spot-delivery-scams-and-yo-yo-financing.html

In California, the law gives the dealership 10 days to find financing according to the contract terms. If they are unable to do so, they have to notify you before that 10 days is up - and you have the choice of accepting the new terms, or returning the vehicle. If you return the vehicle, they must return your down payment and any trade-ins, but they can charge you fees according to the contract.

This generally happens only to people with very spotty credit history. In fact an 11% auto loan today is an indication that this person has very spotty and blemished credit.