Used Car was Purchased and Dealership wants it back

[nythng4mygrl]

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

My little brother just bought a used vehicle from a big dealership in our area. He was approved by the local credit union, signed a purchase agreement, and the loan documents to show 11.1% interest with the credit union as the lien holder. the dealership received instant online approval and congratulated him on his vehicle purchase. He drove off of the lot this past Saturday. Today he received a call that he had to go to dealership to re-sign the papers that another bank approved his vehicle. When we got to the dealership in my vehicle they told him that he was not approved for the 2003 Explorer, but was approved for a 2009 Toyota Yaris which would require a bigger down payment that my brother does not have. The dealership advised my brother that the credit union would not approve a late year model such as the Explorer. I asked for the denial letter from the credit union and they got hostile with me and told me they were sending a tow truck to pick up my brother's vehicle that they were the lien holder. What I later found out was that the vehicle was sold to another customer under the table and was not removed from inventory so they wanted to make 2 sales instead of lose 1. My friend sold my brother the vehicle and gave us the inside information. Since my brother already signed the loan documents and was given the keys to leave the lot, I would like to know if my brother must surrender the vehicle even though they won't provide a denial letter, however we have the approval code from the credit union. Does he stand a chance of keeping this vehicle? He asked them for something comparable to the Explorer but they would only offer him the 09 Yaris.

thanks,

 

[George1776]

If everything went fine by the first bank, I don't see where they can demand it back & even in that event, read the contract (have you done this???). If it has no contingency for this then he can either get another loan (bank of his choosing) or pay cash.

 

[TheGeekess]

George, how's that lawsuit against Axe™® going?


OP, have your brother call the credit union and check with the loan officer that the deal was completed and the dealership has the money. I would think the CU owns the vehicle now (until brother pays it off), and if CU does, brother can tell dealership to pound sand.

http://www.leaseguide.com/articles/finance.htm

 

[nythng4mygrl]

Thank you both. I have read all of the fine print and there is nothing that says it is a temporary contract. They are basically saying that they floated the car to him until they reached final approval from the Credit Union. When i asked for denial letter they got in our faces and told my brother to bring the car back or they would call the police. They did not give him the option to finance on his own, and basically told him the Explorer was now off limits period. We know that another salesman took a deposit on the side from another customer, however he did not do any paperwork or have another purchase agreement signed. The dealership gave my brother the keys and now they are telling him that they will not put the paperwork through the credit union and are pulling the contract. I placed a call to the General Manager and my brother left a voicemail for the credit union. I would think that if they were unable to finance through the credit union, they would have tried other banks until the deal went through. It is very shady what they are doing and unethical. They still will not provide a denial letter although we have the approval code from the credit union. Anyway, who would let a teenager with NO credit walk out of the dealership with keys in hand knowing that it may not be approved???

 

[xylene]

Please - Please - Please

What matters is what is in the purchase contract.

Stop harping on the keys. Just because your brother has the keys does not mean it is impossible for the sale to be rescinded.

 

[nythng4mygrl]

Xylene, are you on your period? The reason for me "harping" on the keys is because the dealership was trying to say that they sold to another customer 4 days before my brother walked in the door. They gave my brother the keys instead of the other customer who was not even financed nor did he sign any paperwork or contracts with the dealership. Any hoo, after a long day on phones with Attorney General's Office, Better Business Bureau, and the Federal Trade Commission, I placed a phone call to the Owner/General manager of the dealership. The dealership did not follow proper protocol, and after speaking to the Owner, my brother went from a $358 a month note, to a $258 a month note same terms and interest rate. My brother is now the owner of his vehicle. Thank you everyone for the advice. xylene, i think you need a hug....

 

[George1776]

George, how's that lawsuit against Axe™® going?


OP, have your brother call the credit union and check with the loan officer that the deal was completed and the dealership has the money. I would think the CU owns the vehicle now (until brother pays it off), and if CU does, brother can tell dealership to pound sand.

Car Financing - Dealer Financing - How it Really Works

Thats OK but I have a new problem with another product ... I don't want to be premature so I am checking it out further before I post a new thread ...

 

[xylene]

if they car was truly sold to another first - and not some hogwash like it turned out - then it would not matter that the dealer gave you the keys.

 

[nythng4mygrl]

The car was never sold. The Salesman took a deposit from his friend, and did not write up any paperwork. It was never a Sale for the 1st customer as the Salesman was doing a favor for his friend behind the scenes and failed to tell the staff. If it truly was a sale for the 1st customer, the dealership would have removed the car from the inventory as well as lock the keys up until the 1st customer was ready for delivery. All is good now and my brother is the proud owner of his first vehicle and gets to KEEP his keys.