If I purchased a used car from a reputable dealer and they raised the financing rate that was agreed upon, what are my rights?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I purchased a used car from a reputable dealer and they raised the financing rate that was agreed upon, what are my rights?
They offered me 3.99% APR financing and all papers were signed that way. However, they called me today (a day later) to tell me they are going to charge me 10%, not 3.99%. Can they do that after papers have all been signed? Is there anything I can do?
Asked on September 26, 2011 under General Practice, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Contracts are enforceable as per their terms: if the contract of sale specified a certain interest rate, that rate is enforceable and the dealer may not thereafter change it. You need to check the contract and any other documentation carefully, though--you need to see if it had any disclaimers or qualifications which would legally let the dealer alter the rate (for example, if it said "3.99% APR to qualifying customers," that could give them an out--if you did not meet the criteria for a 3.99% rate, they could off you a different rate).
However, if the contract is firm, it is enforceable, and you could bring a legal action to do so, and possibly to collect other damages, too (e.g. it may be the the dealer has committed consumer fraud, which would entitle you to additional compensation). You should first check the contract; and if you think that the dealer breached it's plain terms, you should speak with an attorney to explore your options further.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.