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Dealer Wants Car Back - Wants More Money Davison MI

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.

Clio Ford Inc
(810) 686-5900
4325 W Vienna Road
Clio, MI
Services
Truck Auto Body,Used Car Dealers,Auto Dealers

Rpm Auto Sales Inc
(810) 785-6776
6120 N Dort Hwy
Flint, MI

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Budget Auto Sales
(810) 238-0208
3318 Fenton Road
Flint, MI

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Champion Auto Sales
(810) 785-3320
G4315 Clio Rd
Flint, MI

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Lane Car Co
(248) 627-8000
2200 S Ortonville Rd
Ortonville, MI

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Hank Graff Chevrolet Davison
(810) 653-4111
800 N. State ST.
Davison, MI
 
Palm Tree Auto
(810) 245-2616
1313 Imlay City Rd
Lapeer, MI

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Olympic Auto Sales
(810) 787-1700
G4315 Clio Rd
Flint, MI

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Be Real Auto Sales
(810) 789-2277
G4113 Clio Rd
Flint, MI

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C & C Auto Sales
(810) 423-1062
7213 Coldwater Rd
Flushing, MI

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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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