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Dealer Wants Car Back - Wants More Money Auburn AL

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.

Gentry & Ware Motor Co
(334) 749-1286
3906 Pepperell Pkwy
Opelika, AL

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Firestone Complete Auto Care
(251) 478-8902
1516 Government St
Mobile, AL
 
Pelham Imports Incorporated
(205) 663-6838
2670 Pelham Pkwy
Pelham, AL

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Jerry's Used Cars
(256) 775-2883
10474 Us Highway 31
Hanceville, AL

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M.C.S. Mortgage and Loan Center
(334) 567-2223
401 South Main Street
Wetumpka, AL
 
Maxwell Motors
(334) 262-3925
410 Air Base Blvd Ste A
Montgomery, AL

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Captain Ron's Auto Sales
(251) 675-2800
609 Highway 43 S
Saraland, AL

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Roebuck Honda
(205) 833-1233
300 Gadsden Hwy
Birmingham, AL

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F-1 Sports Car Center Inc
(205) 957-2626
4750 Hwy 280 S
Birmingham, AL

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Lexus Of Mobile
(251) 544-1343
3024 Government Blvd
Mobile, AL

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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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