signed legal contract for buying a car, now learning we were not approved

[mrshill22509]

I live in Missouri. My husband and I bought a car through a car dealership a week ago. We signed the finance papers and were told what bank financed us. The name of the bank and the address and everything is on the agreement we signed. The car lot told us that everything went through just fine and as i stated before we signed a legal contract.I just got a letter telling me that the bank didn't approve us for the auto loan. We had a jeep that we traded in as well, signed the title over to the car lot already. What can we do legally to fix this problem without my husband and I being jacked around?

 

[latigo]

I live in Missouri. My husband and I bought a car through a car dealership a week ago. We signed the finance papers and were told what bank financed us. The name of the bank and the address and everything is on the agreement we signed. The car lot told us that everything went through just fine and as i stated before we signed a legal contract.I just got a letter telling me that the bank didn't approve us for the auto loan. We had a jeep that we traded in as well, signed the title over to the car lot already. What can we do legally to fix this problem without my husband and I being jacked around?

How do you want it "fixed"?

Are you fixing to keep the purchase and pay the dealer the same as the bank if it approved the loan? Or wash the deal and get back the Jeep?

You really ought to have your attorney read the purchase agreement to learn your options. If it does not expressly provide that the sale is conditioned upon credit approval, it could end up an in-house-financing.

But that could in turn create some other problems. Like maybe the car is security under a flooring plan and the dealer can't get the title until it is released from flooring. Or the dealer has or gets the title, has it reissued by DMV with the dealer as the secured party, but the dealership goes out of business before you pay it off and you end up wondering why the title disappeared.

Maybe best fix is to find an outfit that will finance the sale. Or get the Jeep and shop elsewhere where you can be jacked around some other way.

See how simple it is?

 

[mrshill22509]

How do you want it "fixed"?

Are you fixing to keep the purchase and pay the dealer the same as the bank if it approved the loan? Or wash the deal and get back the Jeep?

You really ought to have your attorney read the purchase agreement to learn your options. If it does not expressly provide that the sale is conditioned upon credit approval, it could end up an in-house-financing.

But that could in turn create some other problems. Like maybe the car is security under a flooring plan and the dealer can't get the title until it is released from flooring. Or the dealer has or gets the title, has it reissued by DMV with the dealer as the secured party, but the dealership goes out of business before you pay it off and you end up wondering why the title disappeared.

Maybe best fix is to find an outfit that will finance the sale. Or get the Jeep and shop elsewhere where you can be jacked around some other way.

See how simple it is?

the contract doesn't now say sale is conditioned upon credit approval.. the contract does say that seller assigns its interest in this contract to (the banks name). Not sure which way we want to go on this as far as getting the keep back or trying to keep the new car. Thanks for your advice. I think I will contact my attorney and see what they say.

 

[latigo]

the contract doesn't now say sale is conditioned upon credit approval.. the contract does say that seller assigns its interest in this contract to (the banks name). Not sure which way we want to go on this as far as getting the keep [sic] back or trying to keep the new car. Thanks for your advice. I think I will contact my attorney and see what they say.

Okay, but if it were I, the only reason I would hassle over whether or not the dealer needs to eat the financing is that it might motivate them to find another source of the money.

Because as I mentioned earlier if you end up making payments to the dealer as the secured party on the title, you will be at their mercy as far as their keeping accurate records of your payments. And again, no assurance that once it is paid off that the dealer will still be in business and able to sign off and deliver the title.

Anyway, that is what I think. Let us know what your lawyer thinks.
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[SUP]I once overheard a crust old lawyer remark with marked disgust," I wouldn't have a (make of automobile) up my (body orifice) if there was room for Chicago!" And those are my sentiments on Jeeps. Which, when hwy driven give the sense that you are in the "Windy City". [/SUP]