Finance loan on new car
UPDATED: Oct 1, 2022
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Finance loan on new car
Bought a new car on 01/17 was told I was approved through a credit union and they let me drive car home. Received call today 1/28 stating credit union would not approve me due to loan amount. I was then told by the dealer they got me approved through another bank but interest rate would be higher making my payment go up higher. I have not gone back to sign new documents. I’m wondering what my options are to get out of this vehicle now. I traded in a car and was wondering if I would be able to get back in that? I am not sure how
they let me drive off in a brand new vehicle when was not secured
Asked on January 28, 2019 under Business Law, New Hampshire
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
Whether or not they *should* have let you drive off in the new vehicle, you did: you signed a contract/purcahse agreement for and purchased the car and therefore must pay for it--you are contractually obligated to pay for it. If your original financing fell through, you have to find alternate financing--e.g. the higher-interest-rate financing they found for you. If you don't find alternate financing, you will be in breach of the purchase agreement and they can both repossess the car and sue you. Say, for example, that the car costs $20k; say that due to depreciation, if it were repossessed, it would be worth $16k; they could repossses the car and sue you for the extra $4k. You have no right to get out of the contract because the financing feel through; it is your obligation to find a way to pay for the car you purchased.
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