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Dealer Wants Car Back - Wants More Money Mankato 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.

Hickok's Auto
(507) 345-1737
1215 N Riverfront Dr
Mankato, MN

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S & S Motors
(507) 354-8634
133 Zieske Rd
Courtland, MN

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Towlerton Motor Company
(507) 831-2310
1815 1st Avenue North
Windom, MN
Services
SUV Repair,Auto Dealers

Hinkley Chevrolet Pontiac
(507) 553-3121
150 3rd Street Northeast
Wells, MN
Services
Fuel Injection Repair,Radiator Repair,Auto Dealers

Grand Rapids GM
(218) 327-2201
1610 S Pokegama Avenue
Grand Rapids, MN
Services
Fuel Injection Repair,Radiator Repair,Used Car Dealers,Auto Dealers

Affordable Towing
(507) 388-8838
600 Summit Ave
Mankato, MN
 
Duluth Dodge Suzuki Mitsubishi
(218) 720-6123
4755 Miller Trunk Highway
Hermantown, MN
Services
Clutch Repair,Fuel Injection Repair,Radiator Repair,Tune up Repair,Used Car Dealers,Auto Dealers

Dick Olsen Motors
(507) 642-8888
84601 Olson Drive
Madelia, MN
Services
Auto Repair,Van Dealers,Used Truck Dealers,Auto Dealers

Mac Donald Wold Inc
(218) 927-2713
12 Minnesota Avenue North
Aitkin, MN
Services
Alignment Repair,Radiator Repair,Truck Auto Body,Tune up Repair,Van Dealers,Auto Dealers

Mills GM
(218) 829-3504
14138 Dellwood Drive
Baxter, MN
Services
Radiator Repair,Tune up Repair,Truck Dealers,Used Car Dealers,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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