Can I just had the dealership the keys & walk away from this "invalid" car contract

[kxlot79]

Can I just had the dealership the keys & walk away from this "invalid" car contract

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

I financed a car in Illinois under mostly agreeable terms, signing a contract. Two days later, the dealership called me back, and asked me to sign a new contract for a higher percentage because I hadn't "actually qualified for that rate and the old contract is invalid." It so happened that this same day I got an approval note through an independent auto financing company with a much lower interest rate. I had already checked to see that the dealership was on an approved list with my independent lender. The finance guy said he wasn't sure his dealership could accept my independent financer they had worked with in the past and that he would have to "double check with the dealership manager when he's back in the office tomorrow." Since this strikes me as predatory lending (given how shocked this finance guy was I had a better interest approval, and how slick he became when I came back to his office) and I would rather end my relationship with this dealership and take my business elsewhere. Since I've already been told this contract is invalid, can I just refuse to sign a new contract and give them their car back scot free? (I had a $0 down deal.)

 

[OHRoadwarrior]

No, you will be responsible for usage fees. You can bring your own financing to the table.

 

[swalsh411]

They can't "not accept" your financing and force you to use theirs. If they try this, then walk away. But wait until they actually try and tell you that you can't use your own financing, not just a "maybe not".

 

[latigo]

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

I financed a car in Illinois under mostly agreeable terms, signing a contract. Two days later, the dealership called me back, and asked me to sign a new contract for a higher percentage because I hadn't "actually qualified for that rate and the old contract is invalid." It so happened that this same day I got an approval note through an independent auto financing company with a much lower interest rate. I had already checked to see that the dealership was on an approved list with my independent lender. The finance guy said he wasn't sure his dealership could accept my independent financer they had worked with in the past and that he would have to "double check with the dealership manager when he's back in the office tomorrow." Since this strikes me as predatory lending (given how shocked this finance guy was I had a better interest approval, and how slick he became when I came back to his office) and I would rather end my relationship with this dealership and take my business elsewhere. Since I've already been told this contract is invalid, can I just refuse to sign a new contract and give them their car back scot free (sic)? (I had a $0 down deal.)

The trouble with your suggestion of surrendering the car and thereafter ignore “Scott-free” your contractual commitment to purchase the vehicle is that you are assuming that the purchase agreement is “invalid” without any “valid” reason to do so.

My point being that neither the seller nor the buyer to an otherwise enforceable purchase agreement can render the contract “invalid” and non-binding by simply requesting the other party agree to changes in its terms.

In other words, just because someone at the seller’s establishment told you that the “old contract is invalid” did not and does not nullify the contract. And the seller’s proposal that a new agreement be drawn and signed is nothing more than an offer that you have the right to accept or refuse. But neither the seller’s act of making that offer or your refusal to accept it effects the validity of the original contract.

Obviously both you and the dealer can agree to cancel the sale, but it cannot be cancelled by just one of the parties.

So the risk is that if you were to treat the sale as void, commit to a purchase from another source, there is the "likelihood" that the seller could still hold you to the original purchase agreement.

I say "likelihood" because there may be factual features here creating an "equitable estoppel" that could prevent the seller from urging the original contract. But these are complex legal issues that I don't think we have enough information to anticipate their application.

But you want some suggestions as to how to deal with the dealer from here, let me know.

 

[Proseguru]

This is all going to depend on the CONTRACT that the OP signed, nothing more.

Unless the OP wishes to post the entire contract, no one will be able to offer advice based on the facts...just suggestions based on what they think the contract says.

Take the contract to a lawyer and have him review it...then the lawyer can write a letter (if its appropriate) saying that you will surrender the vehicle or other such actions deemed appropriate.

 

[swalsh411]

A contract that says they must use dealer financing would be unenforceable.