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Dealer Wants Car Back - Wants More Money New Canaan CT

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.

Vail Buick Pontiac GMC Inc
(914) 666-7537
606 Bedford Rd
Bedford Hills, NY
Services
Auto Repair,Clutch Repair,Truck Dealers,Used Car Dealers,Auto Dealers

Maritime Motors of Fairfield
(203) 259-5221
985 Post Road
Fairfield, CT
Services
SUV Repair,Auto Dealers

Island Park Auto Sales
71 VIRGINIA RD
N White Plains, NY
 
Engelmann Sales Corp
345 ROUTE 25A
Northport, NY
 
Enterprise Car Sales
1141 EAST JERICHO TP
Huntington, NY
 
Adzam Auto Sales Inc
(914) 241-2000
519 Bedford Road
Bedford Hills, NY
Services
Clutch Repair,Fuel Injection Repair,Radiator Repair,Van Dealers,Used Car Dealers,Auto Dealers

North Auto Sales Inc
150 NORTH ST
Harrison, NY
 
Trade Wholesalers Inc
3 SUMMIT VIEW DR
Bayville, NY
 
W2P2 Auto Sales
1801 VILLAGE DR
Brewster, NY
 
Park Ave Auto Sales Inc
733 PARK AVE
Huntington, NY
 

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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