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Dealer Wants Car Back - Wants More Money Washington DC

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.

Fairfax Autobody
(703) 273-1850
9610 Lee Highway
Fairfax, VA
Services
Collision Repair,Auto Dealers

Jimmy's Auto Inc
(202) 842-3242
418 New York Ave NW
Washington, DC

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AIM Auto Repair
(202) 234-1686
601 Rhode Island Ave N.W.
Washington, DC
 
Mercedes and Volvo Motor Cars, Inc
(202) 265-7235
1525 15th St., NW
Washington, DC
 
Mega Motors Inc
(202) 234-4600
1740 14TH St NW
Washington, DC

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A & A Motor Sports & Imports
(202) 640-5724
307 New York Ave NW
Washington, DC
 
American Honda Motor Co
(202) 347-2139
1001 G St Nw # 950w
Washington, DC

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3 D Motors
(202) 667-3433
200 Florida Ave NW
Washington, DC

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Capitol Fidelity Insurance
(202) 544-6800
626 8th St NE
Washington, DC
 
U S Auto Sales
(202) 299-0920
2221 14th St NW
Washington, DC

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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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