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OT: Can a dealership take back a car a month after the sale?

Posted on 3/21/18 at 4:27 pm
Posted by jangalang
Member since Dec 2014
36541 posts
Posted on 3/21/18 at 4:27 pm
My brother has the bill of sale, written agreements, car insurance, new tags, etc, but he said the dealership called today and said that the financing bank would no longer approve the sale and that my brother needs to come back in and refinance. Is my brother required to refinance? Seems like the dealership is trying to shake more money out of him...
This post was edited on 3/21/18 at 4:33 pm
Posted by ThaiTiger24
Member since Jan 2016
4117 posts
Posted on 3/21/18 at 4:44 pm to
They can only take it back if there is a provision in the contract giving the bank the right to not approve the sale. Just read the contract carefully and you should be able to find the answers in there.

Disclaimer: I am not authorized to practice law in the state of Alabama so no attorney client relationship is formed by the giving of said advice. blah blah blah, etc... etc... etc... :)
This post was edited on 3/21/18 at 4:48 pm
Posted by jangalang
Member since Dec 2014
36541 posts
Posted on 3/21/18 at 5:14 pm to
Still seems a bit shady but I’ll be looking through the fine print. I will also be demanding that my brother speak to the original bank that approved the car loan iot verify their hand into sudden reneged agreement. I’ve been googling and apparently some dealerships are wrong in doing such and have been sued.
Posted by ThaiTiger24
Member since Jan 2016
4117 posts
Posted on 3/21/18 at 5:15 pm to
I would tell your brother to demand the dealership state which part of the agreement they are using to base their decision off of.
Posted by jangalang
Member since Dec 2014
36541 posts
Posted on 3/21/18 at 5:32 pm to
Thanks. May God be with you and your mastery of the Napoleonic Code.
Posted by ThaiTiger24
Member since Jan 2016
4117 posts
Posted on 3/21/18 at 5:35 pm to
We get made fun of all the time for that. Other lawyers from other states hate us because they don't know what the hells our laws say.
Posted by HailToTheChiz
Back in Auburn
Member since Aug 2010
48961 posts
Posted on 3/21/18 at 5:38 pm to
That doesn't sound right, but read the contract.

Like others said, tell your brother to ask the dealership where it states in the contract that he must refinance. Make the dealership show him proof of something other than "hey we want more money plz come back"
Posted by jangalang
Member since Dec 2014
36541 posts
Posted on 3/21/18 at 6:05 pm to
quote:

We get made fun of all the time for that. Other lawyers from other states hate us because they don't know what the hells our laws say.

The historical aspect of it is pretty neat not going to lie. Would be worried if I had to relocate or had to transfer credits to a different law school in a different state though. Do you have a practice or do you just sift through paperwork for a big company all day?
Posted by ThaiTiger24
Member since Jan 2016
4117 posts
Posted on 3/21/18 at 6:08 pm to
1. Immigration

2. Corporate transactions

3. Commercial litigation

Mainly....my policy is if you pay me enough money I will figure out how to get it done.

Did you end up applying to law school?
This post was edited on 3/21/18 at 6:10 pm
Posted by JamalSanders
On a boat
Member since Jul 2015
12135 posts
Posted on 3/21/18 at 6:18 pm to
I would absolutely not take the car back to the dealership under any circumstance until everything is final.
Posted by jangalang
Member since Dec 2014
36541 posts
Posted on 3/21/18 at 6:23 pm to
quote:

Did you end up applying to law school?

Nope. Scored a 153 which was disappointing because I needed scholarship money plus spent a shite ton of money on Testmasters prep. Just went ahead and went to work since I already have two kids.
Posted by jangalang
Member since Dec 2014
36541 posts
Posted on 3/21/18 at 6:27 pm to
quote:

I would absolutely not take the car back to the dealership under any circumstance until everything is final.

This is exactly what I’m thinking. My brother is a smoker and I told him to hotbox that car if he has to take it back.
Posted by JamalSanders
On a boat
Member since Jul 2015
12135 posts
Posted on 3/21/18 at 8:15 pm to
quote:

This is exactly what I’m thinking. My brother is a smoker and I told him to hotbox that car if he has to take it back.


That's a bad idea.

I did just talk to my dealership guy and he said that occasionally the dealership just messes up the paperwork. If your brother hasn't made a payment yet it might be worth a trip down there to try to get it all straightened out.
Posted by TheJones
Member since Nov 2009
33345 posts
Posted on 3/21/18 at 8:45 pm to
Any dealership worth their salt will send that financing to several banks in the event financing falls through. I’ve only financed one car and I setup the financing myself through a credit union. I’d recommend he do that if he does go back in. Some of these dealers get crazy kickbacks by pushing customers to certain banks
Posted by MikeAV8s
Member since Oct 2016
1740 posts
Posted on 3/21/18 at 9:00 pm to
I work at a dealership. Still too many questions. New or used car? Who financed, bank or manufacturer(like Ford Credit)? If this is a new car dealership, they are not out to make a buck. I’d like to know exactly what they told your brother. I don’t think it’s shady, it absolutely is irregular.
Posted by jangalang
Member since Dec 2014
36541 posts
Posted on 3/21/18 at 9:11 pm to
quote:

I did just talk to my dealership guy and he said that occasionally the dealership just messes up the paperwork.

A whole month to figure out their own problem? The dealership and the bank both approved the deal and apparently assumed they’d have a lender. They couldn’t find one so now the dealer is essentially the lender. If it’s true that there is a 10 day rule to where businesses can rescind the contract, then my brother has every right to keep his current agreement and doesn’t have to accept any difference in interest rate. His credit is more than likely already shite, so there is no way he can afford to let the bank go higher. Any alterations or voidance to the agreement would have to follow being up front with a set criteria and letting said criteria form the base of his negotiations imo.
Not to mention if he goes in and refinances, he puts himself back into that 10 day window. Maybe it’s best he doesn’t go back in.
LINK /
This post was edited on 3/21/18 at 9:42 pm
Posted by jangalang
Member since Dec 2014
36541 posts
Posted on 3/21/18 at 9:18 pm to
quote:

Any dealership worth their salt will send that financing to several banks in the event financing falls through. I’ve only financed one car and I setup the financing myself through a credit union. I’d recommend he do that if he does go back in. Some of these dealers get crazy kickbacks by pushing customers to certain banks

My brother is dumb as bricks when it comes to money. More than likely all of the other banks denied him( and you know these banks are bottoming out his credit score rerunning his credit the past month.) He’s a great person and can do all things plumbing, electrical, mechanically inclined, etc, he’s just dumb with life skills... It was a reputable dealership that sold him the car though which is surprising.
Posted by MikeAV8s
Member since Oct 2016
1740 posts
Posted on 3/21/18 at 9:21 pm to
There is also the possibility that there was incorrect information on the loan app. If his credit is bad, this may be secondary financing. If that is the case, it “could” be that the secondary finance company found inconsistantcies in the info provided and therefor the contract is voided.
Posted by Tickytiger
Auburn, AL
Member since Sep 2015
1263 posts
Posted on 3/21/18 at 9:22 pm to
I manage a car dealership. Most dealerships have you sign a bailment agreement when there is financing. It essentially states that if the contract is not funded you will return the car or work with them to secure financing through another source. A lot of finance contracts are spot delivered. Meaning they have a preliminary approval but there may still be additional stipulations or verifications necessary to get the deal funded. Agressive dealerships will spot deliver cars and work out the details later. Sometimes this happens. There is a certain amount of leverage though that the customer has. Especially, if it was a new car that now has been titled. Trust me, the dealership doesn't really want the car back. Work with them. Many times the new deal will be better than the original because they want to keep the car in the street.
This post was edited on 3/21/18 at 9:27 pm
Posted by Fear The Thumb
Coastal, AL
Member since Nov 2012
3368 posts
Posted on 3/22/18 at 7:29 am to
Sounds shady to me but if they want to make me come back in to refinance the only way I would go through the hassle is if they lower the interest rate.
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