What are my options witha dealership and my car regarding a denial of financing?

UPDATED: Mar 11, 2012

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What are my options witha dealership and my car regarding a denial of financing?

I just recently purchased a car they told me that everything was approved as far as financing; all I had to do was give me down payment and sign. I came and I did just that and I drove off in the new car. A week later they said that I was not approved and basically I may have to return the car. I’ve already sold my prior vehicle and it’s the only one I have what are my options. I have all my signed documents from the dealership.

Asked on March 11, 2012 under General Practice, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

In a case like this, where you took an action to your detriment (selling your car) based on reasonable reliance on representation or promise made by another (the representation that everything was approved for the purchase), which promise they either knew or should have reasonably known/expected would cause you to take such detrimental action (i.e. a dealership should know you'd sell or trade in an existing car when you buy another), you may be able to hold that promise (that you could buy the car) enforceable under the theory of "promissory estoplel." It is possible you could force them to sell you the car under the terms discussed (e.g. the dealership itself would have to finance you) or alternately recover monetary compensation for the loss or damage you've suffered (the sale of your other car). It would be worthwhile for  you to meet with an attorney to discuss the situation and your options in greater detail.

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.

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