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Dealer Wants Car Back - Wants More Money Greenfield IN

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.

On Broadway Inc
(317) 485-7788
222 W Broadway St
Fortville, IN

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Ray Skillman Northeast Buick GMC
(317) 300-2007
7550 East Washington Street
Indianapolis, IN
 
Coast To Coast Auto Sales
(317) 596-9500
9200 E 131st St
Fishers, IN

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Indiana Auto Credit
(317) 635-8179
1603 E Washington St
Indianapolis, IN

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Indy Scooters
(317) 322-0541
2145 S Emerson Ave
Indianapolis, IN

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The KAR Lot
(317) 890-8200
9059 Pendleton Pike
Indianapolis, IN
 
Mike's GMC
(317) 352-9311
7750 E Washington St
Indianapolis, IN
 
Trader Paper
(317) 806-0021
11907 Exit 5 Pkwy
Fishers, IN

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Duke Golds Speedway Mazda Subaru Volkswagon Body SHO
(317) 263-0002
1930 W 16th St
Indianapolis, IN

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Troy Motors
(317) 782-3800
521 E Troy Ave
Indianapolis, IN

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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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