car loan contract

i recently purchased a car at a dealership, signed the contract with a bank that had approved the loan. a week later the dealer called and said the bank backed out of the deal and wanted me to come in and sign new loan papers with a different bank the terms of the loan changed to the tune of 53 dollars more per month. (my question) is the bank bound to the original contract since they did approve the loan once and the contract was signed?

I don't believe that the bank actually approved the loan. And since your purchase was subject to financing, you really have no fulfilled contract yet. The bank papers that you signed were probably the loan application papers and not the final loan docs.

[Edited by HomeGuru on 01-06-2001 at 10:02 AM]

the paper states it is a pennsylvania motor vehicle installment sale contract

rolling rock said:

the paper states it is a pennsylvania motor vehicle installment sale contract

Click to expand...

HomeGuru response: yes and please read the fine print on that paper that states something like "this transaction is subject to lender's approval and financing.."