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Dealer Wants Car Back - Wants More Money Brewton 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.

Conversion Concepts
(251) 626-0010
2518 Us Highway 98
Daphne, AL

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Ellison Auto Sales
(256) 362-7212
412 Fort Lashley Ave
Talladega, AL

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Midas Auto Service Experts
(251) 342-0491
3710 Airport Blvd
Mobile, AL
 
Colony Motor Cars Inc
(251) 626-8881
2007 Us Highway 98
Daphne, AL

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Paramount Auto Sales
(205) 714-8100
921 2nd Ave N
Birmingham, AL

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McGraw-Webb Chevrolet Inc
(334) 682-4258
29 Camden Byp
Camden, AL

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Taylor's Used Cars
(334) 863-5552
6520 Hwy 431
Roanoke, AL

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Action Auto
(334) 393-1725
1240 Rucker Blvd
Enterprise, AL
 
Kia Store Anniston
(256) 831-7122
1401 S Quintard Ave
Anniston, AL

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Sexton Auto Parts
(205) 674-9916
17347 Highway 269
Quinton, 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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