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Dealer Wants Car Back - Wants More Money Decatur 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.

River City Auto Sales Inc
(256) 340-1557
3420 Highway 31 S
Decatur, AL

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Robert's Auto Sales
(256) 751-3654
2092 Highway 31 NW
Hartselle, AL

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Auto Tech Of Mobile
(251) 660-1284
3943 Government Blvd
Mobile, AL
 
Brown Joel Auto Sales
(256) 739-6111
5285 Al Highway 157
Cullman, AL

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Whitten Motors
(256) 739-0070
1000 Brunner St NW
Cullman, AL

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Smith Motors
(256) 350-9937
3211 Highway 31 S
Decatur, AL

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Dexter's Auto Sales
(256) 751-3500
3139 Highway 31 SW
Hartselle, AL

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Alabama Auto Brokers
(256) 927-7433
1205 W Main St
Centre, AL

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Hyuandai Of Daphne
(251) 626-6363
1204 Us Highway 98
Daphne, AL

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Tony's Quality Cars LLC
(251) 459-7919
5711 Highway 90
Theodore, 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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