T
tnj654
Guest
I live in Illinois. On 11/15/02 I purchased an auto at a new car dealer, the terms of the contract was for me to obtain approval of a smart buy program (a kind of lease program) through GMAC for financing.
When I took delivery of the auto I signed the contract and a form called 'Supplemental Agreement to retail installment contract', this contract states that if the dealer is unable to obtain financing under the terms of the contract and notifies me of the denial, that I must return the auto to them as soon as possible or enter into a new contract for the purchase.
Due to the fact that this deal was not completely approved yet and I was currently in desperate need for a new auto, because the lease on my current auto was soon to expire. I decided to look for another auto that would be my second choice if this deal was denied.
After calling the dealer day after day to get a status of the loan, I finally received a call from the dealer on 11/22/02 and they told me that the smart buy financing was denied. I asked them what my options were, they said they could do the deal under different terms making my payments $60 more a month. I told them I would like to just turn in the auto. They told me to come in and we can discuss some alternative options.
That same day 11/22 when I arrived at the dealer I was told that there was no one there from the finance department and I would have to return the next day. At this point I was very upset given that fact that the dealer was located 25 miles away from my home and they told me earlier that day to come in. I told the dealer I would be in on 11/23 to return the auto.
Given the fact that I was informed by the dealer that the financing was denied and the contract stated that either I enter into a new contract or return the auto thus rendering the contract void. I went to the second dealer and purchased an auto with on the spot approval for financing and decided turn in the 1st auto the next morning 11/23.
11/23 I went to the original dealer to turn in the auto and they insisted on convincing me to look at some other financing options. I was not in the least bit interested in what they had to say and told them I just wanted to turn in the auto. They continued to press me and I finally told them I had already purchased an auto and am no longer interested in purchasing their auto.
The dealer then took the stand that they could still attempt to get the original financing approved and hold me to this contract. I told them that was not fair given the fact that they already notified me on 11/22 that I was turned down for the financing. Since they told me I was turned down and the contract stated that the contract is null and void if the terms of the financing were not approved and they notify me of that fact. Witch in fact was the case.
The Finance manager refused to take the auto back and insisted that he had a friend at GMAC that could maybe get the approval for the original financing. Here it is 9 days later and I was already told that the financing was denied. now they are changing thier minds and telling me that maybe they can get approval.
A few questions:
Is this contract still valid if they already told me that I was denied, and then get approval from GMAC after the fact?
Is there not a limit on how long a dealer can take to obtain financing? They have had me dangling since 11/15/02 on the financing and I still don’t have approval.
Is the purchase of the second auto legally binding given the fact that the 1st dealer is now attempting to hold me to this contract after telling me that I was denied and voiding the origianl contract.
What if any, are my options?
When I took delivery of the auto I signed the contract and a form called 'Supplemental Agreement to retail installment contract', this contract states that if the dealer is unable to obtain financing under the terms of the contract and notifies me of the denial, that I must return the auto to them as soon as possible or enter into a new contract for the purchase.
Due to the fact that this deal was not completely approved yet and I was currently in desperate need for a new auto, because the lease on my current auto was soon to expire. I decided to look for another auto that would be my second choice if this deal was denied.
After calling the dealer day after day to get a status of the loan, I finally received a call from the dealer on 11/22/02 and they told me that the smart buy financing was denied. I asked them what my options were, they said they could do the deal under different terms making my payments $60 more a month. I told them I would like to just turn in the auto. They told me to come in and we can discuss some alternative options.
That same day 11/22 when I arrived at the dealer I was told that there was no one there from the finance department and I would have to return the next day. At this point I was very upset given that fact that the dealer was located 25 miles away from my home and they told me earlier that day to come in. I told the dealer I would be in on 11/23 to return the auto.
Given the fact that I was informed by the dealer that the financing was denied and the contract stated that either I enter into a new contract or return the auto thus rendering the contract void. I went to the second dealer and purchased an auto with on the spot approval for financing and decided turn in the 1st auto the next morning 11/23.
11/23 I went to the original dealer to turn in the auto and they insisted on convincing me to look at some other financing options. I was not in the least bit interested in what they had to say and told them I just wanted to turn in the auto. They continued to press me and I finally told them I had already purchased an auto and am no longer interested in purchasing their auto.
The dealer then took the stand that they could still attempt to get the original financing approved and hold me to this contract. I told them that was not fair given the fact that they already notified me on 11/22 that I was turned down for the financing. Since they told me I was turned down and the contract stated that the contract is null and void if the terms of the financing were not approved and they notify me of that fact. Witch in fact was the case.
The Finance manager refused to take the auto back and insisted that he had a friend at GMAC that could maybe get the approval for the original financing. Here it is 9 days later and I was already told that the financing was denied. now they are changing thier minds and telling me that maybe they can get approval.
A few questions:
Is this contract still valid if they already told me that I was denied, and then get approval from GMAC after the fact?
Is there not a limit on how long a dealer can take to obtain financing? They have had me dangling since 11/15/02 on the financing and I still don’t have approval.
Is the purchase of the second auto legally binding given the fact that the 1st dealer is now attempting to hold me to this contract after telling me that I was denied and voiding the origianl contract.
What if any, are my options?