If it has been over 30 days since my vehicle purchase but the loan is still not finalized, how can I protect myself?

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If it has been over 30 days since my vehicle purchase but the loan is still not finalized, how can I protect myself?

I purchased a vehicle at a small dealership over 30 days ago. I was told that the due date of my first payment was 6/6. Around the 6th I realized I hadn’t received anything from the finance company. After speaking with them, I was told that my loan didn’t go through and the dealer was resubmitting the paperwork. Do I have to resign loan documments? What can I do to protect myself from not having a late payment show up since the loan still isn’t finalized and I technically don’t have anywhere or anyone to send my payment to?

Asked on June 11, 2012 under General Practice, California

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You have what is called a spot delivery. You probably signed something indicating you are taking possession of the vehicle while financing is located. If so, you need to return the vehicle and get back any monies you paid to the dealership. Call it a day and move on as the contract was not fully executed. If you really want the car, look for financing yourself to mitigate your damages or just sit tight and see what happens. Who has the lien on the car currently? If it is the dealer, then simply pay the dealer with verifiable proofs of payment and get receipts.


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