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Dealer Wants Car Back - Wants More Money Aberdeen SD

When you sign a contract to buy with a loan, or to lease, the dealer attempts to find a finance company or bank that will approve you under the terms you agreed to in your contract. Somewhere in your contract or in a separate document, often called a bailment agreement, this condition is spelled.

Chase Auto Connection
(605) 945-2277
2003 E Wells Ave
Pierre, SD

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Williams Automotive Inc
(605) 335-7000
2223 W 12TH St
Sioux Falls, SD

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The Auto Port
(605) 977-0670
701 S Minnesota Ave
Sioux Falls, SD

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McKie Nissan Hyundai
(605) 391-0714
404 Campbell St.
Rapid City, SD
 
Auto Advantage
(605) 347-8277
1650 Lazelle St Ste 1
Sturgis, SD

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Rorvick Auto Sales
(605) 886-4800
603 9th Ave SE
Watertown, SD

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Zomer Motors
(605) 336-6161
1400 W 12TH St
Sioux Falls, SD

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Wheel City Auto-East
(605) 338-1078
6001 W 12th St
Sioux Falls, SD

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JT ELITE AUTO AND SPORTS
(605) 352-2649
2111 DAKOTA AVE S
HURON, SD
 
Aberdeen Chrysler Center Inc
(605) 225-1656
901 Auto Plaza Dr
Aberdeen, SD
 
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Dealer Wants Car Back - Wants More Money

It happens every day. You buy or lease a car from a dealer. He calls you a few days or a couple of weeks later and wants his car back, or asks you to sign a new contract with higher payments. Is this a scam? Is it legal?

First, let's understand some fundamentals of car financing. Car dealers don't finance or lease cars. When you sign a contract to buy with a loan, or to lease, the dealer attempts to find a finance company or bank that will approve you under the terms you agreed to in your contract. Somewhere in your contract or in a separate document, often called a bailment agreement, this condition is spelled out.

Essentially, it says that you agree to let the dealer arrange your car financing on your behalf, and that, if he can't find a finance company or bank to approve you and accept your loan or lease, then the deal isn't final. In this case, you will either be asked to return your car, get a co-signer, or sign a new contract for new terms that are acceptable to a finance company the dealer has contacted. Most likely, the option to return your vehicle won't be mentioned because the dealer does not want to lose this deal.

This is perfectly logical since the dealer wants to paid for his car and if a finance company can't be found who will accept the deal and pay him, the car still belongs to the dealer.

We often get emails from consumers who are in this situation and they frequently ask if they can simply keep the car and refuse to sign a n...

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