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Dealer Wants Car Back - Wants More Money Chaska MN

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.

Cargo Van-Go Inc
(952) 445-0182
7380 Hwy 101 E
Shakopee, MN

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Jim Lupient's Used Cars
(763) 513-5444
7100 Wayzata Blvd
Golden Valley, MN

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Golden Valley Auto Sales
(763) 544-0600
9010 Highway 55
Golden Valley, MN

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Dodge Of Burnsville Inc
(952) 894-9000
12101 Highway 35w S
Burnsville, MN

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Budget Car and Truck Rental
(952) 888-2928
1217 South Clover Dr
Bloomington, MN
 
Walser Buick Pontiac GMC
(952) 400-7987
4601 American Blvd W
Bloomington, MN
Parking
lot

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Hooked On Classics
(952) 955-2706
701 Jefferson Ave SW
Watertown, MN

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Kassick Motors
(952) 884-9555
1000 West 94th St.
Bloomington, MN
 
Freeway Ford, Inc.
(952) 888-9481
9700 Lyndale Ave. S.
Bloomington, MN
 
Poquet Auto Sales
(763) 522-2000
800 Lilac Dr N
Golden Valley, MN

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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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