pauljvalle
Junior Member
What is the name of your state (only U.S. law)? California
I traded in an 2007 Scion tC with an existing loan still on it for a used 2012 mazda3. I was under 1758 on the loan and put down 1500 as a down payment, so only 258 got tacked onto the new loan. To get financed for the Mazda 3, the dealership told me the bank said I have to get a warranty and Gap insurance for the car. So eventually got to the paperwork and signed the contract w loan amount and financing terms and also one selling my 2007 tc to the dealership. Few days later the dealership calls saying that the financing wasn't approved at that I either have to take the warranty off or put down a higher down payment because the lender didn't want to approve the amount financed. I've been researching online, and I'm wondering if this is a "spot delivery scam". And I want to know what my rights are in this situation. If I return the car, do I get my Scion tC back with the existing loan since I handed over the title to the dealership?
Ps... The contract had a sellers right to cancel clause on the back that says contract is contingent upon approved financing and if not approved the seller has the right to cancel and that the buyer is entitled to a refund of any funds deposited as well as the trade in.
I traded in an 2007 Scion tC with an existing loan still on it for a used 2012 mazda3. I was under 1758 on the loan and put down 1500 as a down payment, so only 258 got tacked onto the new loan. To get financed for the Mazda 3, the dealership told me the bank said I have to get a warranty and Gap insurance for the car. So eventually got to the paperwork and signed the contract w loan amount and financing terms and also one selling my 2007 tc to the dealership. Few days later the dealership calls saying that the financing wasn't approved at that I either have to take the warranty off or put down a higher down payment because the lender didn't want to approve the amount financed. I've been researching online, and I'm wondering if this is a "spot delivery scam". And I want to know what my rights are in this situation. If I return the car, do I get my Scion tC back with the existing loan since I handed over the title to the dealership?
Ps... The contract had a sellers right to cancel clause on the back that says contract is contingent upon approved financing and if not approved the seller has the right to cancel and that the buyer is entitled to a refund of any funds deposited as well as the trade in.