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Dealer Wants Car Back - Wants More Money Iowa City IA

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.

Deal Connect
(319) 330-8681
1017 N Summit St
Iowa City , IA
 
Kelly's Auto Ctr
(319) 337-0500
510 S Riverside Dr
Iowa City, IA

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Dale Howard
(641) 648-4691
600 Brooks Road
Iowa Falls, IA
Services
SUV Repair,Auto Dealers

Witham Auto Center
(319) 234-4200
2033 Laporte Road
Waterloo, IA
Services
Clutch Repair,Truck Auto Body,Truck Dealers,Used Cars Dealers,Auto Dealers

Leading Edge Ford
(641) 732-5551
1326 Main Street
Osage, IA
Services
Fuel Injection Repair,Radiator Repair,Tune up Repair,Used Cars Dealers,Auto Dealers

All Iowa Auto
(319) 354-0081
605 Highway 1 W
Iowa City, IA

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Mercedes Benz Chezik Sayers
(319) 358-2122
2331 Mormon Trek Blvd
Iowa City, IA

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Fischer Chevrolet and Implement
(641) 756-3511
113 E Main Avenue
Rockford, IA
Services
Truck Service Station,Auto Dealers

Rydell Chevrolet
(319) 234-4601
1325 E San Marnan Drive
Waterloo, IA
Services
AC and Heating Repair,Truck Auto Body,Used Cars Dealers,Auto Dealers

Keast Auto Center
(712) 755-2116
2101 23rd Street
Harlan, IA
Services
Fuel Injection Repair,Radiator Repair,Tune up Repair,Auto Dealers

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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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