Auto Financing Help

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

Ok here is my problem -

I financed a vehicle from a dealership with a trade-in, all of the paperwork was completed and I was handed the keys to the new car and all of the paperwork. The trade-in I gave them was sold shortly after (a week or so).

I have had the car for almost a month with no word from the dealership on whether or not a bank has agreed to finance me or not.

What happens next?

It almost seems as though the dealership rushed the process and sold/gave me the car without it being approved completely for finance. Also they have already sold my car that I traded in to them.

Please help any information would be greatly appreciated in helping me prepare myself for this situation.

What happened when you looked at the paperwork which likely includes all of the loan agreements?

The loan documents were all filled out and signed by me and the dealership.

I think it is the bank that is backing out on the deal now because of lack of communication/information between them and the dealership.

The bank, nor the dealership have called me with any information or regards to this matter yet and I have had the vehicle for a month now.

ratch3t said:

The loan documents were all filled out and signed by me and the dealership.

I think it is the bank that is backing out on the deal now because of lack of communication/information between them and the dealership.

The bank, nor the dealership have called me with any information or regards to this matter yet and I have had the vehicle for a month now.

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Why haven't you called the dealership?

You can always take your contract to the lender of your choice and see if they will finance the vehicle for you.

I have called the dealership, offered to bring a down payment and monthly note as agreed in the contract but all they said is they would call the bank and give me a call back... With no call back.

The dealership had 10 days (under CA law) to find a bank to finance you at the rate that was agreed upon in the contract they signed with you. After 10 days, they are obligated to honor the contract that you signed, along with the finance terms that were agreed upon in that contract.

If it's been longer than that, you can assume that the financing is going through as indicated on the contract. Now you just need to get an answer from the dealership as to which bank they are using to provide that financing so you can start making your car payments to them.

Do NOT, under ANY circumstances, let someone at the dealership try to convince you that the bank won't finance you at the rate you agreed to, nor force you to pay more of a down payment or raise the monthly payment on that contract. DO NOT sign a new contract with them that changes the terms under which you already agreed. Some dealerships try to do this (it's called Yo-yo financing) and get you attached to the car, then try to convince you that the bank didn't finance the deal, you would need to pay them more, give them a higher down payment, raise the monthly payments, etc., etc., in order to keep the car that you have had long enough to start getting used to.

By law, they had that initial 10 day period to either secure financing at the agreed rate or advise you that they could not finance you. After that time has passed, it is THEIR responsibility to honor the contract they signed. The fact that they dragged their feet is not your problem.

You can read more about Yo-Yo Financing here Yo-Yo Sale, Spot Delivery Fraud and Conditional Delivery Scams