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Dealer Wants Car Back - Wants More Money Bainbridge Island WA

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.

Lynnwood Dodge
(425) 771-2255
20612 Highway 99
Lynnwood, WA
Services
Clutch Repair,Radiator Repair,Tune up Repair,Used Car Dealers,Auto Dealers

Good Chevrolet Inc Parts Department
(425) 235-2000
325 SW 12th Street
Renton, WA
Services
Clutch Repair,Radiator Repair,SUV Repair,Tune up Repair,Auto Dealers

Magnolia Motors
(206) 283-1546
2410 34th Ave W
Seattle, WA

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R K Motors
(206) 526-5226
9603 Aurora Ave N
Seattle, WA

Data Provided by:
Independence Auto Sales
(206) 524-3345
8110 Aurora Ave N
Seattle, WA

Data Provided by:
Seaview Chevrolet Pontiac Gmc
(425) 742-1920
17909 Highway 99
Lynnwood, WA
Services
Radiator Repair,Tune up Repair,Auto Dealers

Affordable Used Cars & Marine
(360) 373-3333
3890 Wheaton Way
Bremerton, WA

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Carter Motors
(206) 783-4877
5221 15th Ave NW
Seattle, WA

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Midas Auto Service Experts
(360) 698-2217
10726 Silverdale Way Nw
Silverdale, WA
 
Auto Glass Plus
(360) 697-5555
20205 Viking Ave
Poulsbo, WA
 
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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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