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Dealer Wants Car Back - Wants More Money Valley 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.

Gentry & Ware Motor Co
(334) 749-1286
3906 Pepperell Pkwy
Opelika, AL

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Wood's Auto Sales
(205) 387-9858
2501 Viking Dr
Jasper, AL

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Dunnavant Motors
(205) 856-0955
1657 Center Point Pkwy
Birmingham, AL

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Conversion Concepts
(251) 626-0010
2518 Us Highway 98
Daphne, AL

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Cdm Auto Sales
(251) 479-9591
2504 Government Blvd
Mobile, AL

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LaGrange Toyota
(706) 882-2963
1031 Hogansville Rd.
La Grange, GA

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Alabama driving school.net
(205) 937-4473
5716 Park side road
Hoover, AL
 
M & M Auto Sales
(251) 653-3124
7295 Theodore Dawes Rd
Theodore, AL

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

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Lakeside Motor Cars
(251) 661-2264
3502 Government Blvd
Mobile, 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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