April 07, 2007

Hey Tony!

Unfortunately, I stumbled across your site the day AFTER I signed all the paperwork for my 2005 Ford Explorer . Basically, the reason I'm writing to you is because I received a call from the dealership a couple days ago. The Finance Manager told me that the first bank did not approve my loan and that they found another bank who would. As a result, he needs me to come in ASAP to re-sign for the car.

Now this happens to be just the opportunity i was praying for because, I'm a first-time buyer and after reading the fine print in that contract, I realized I made a mistake in purchasing the car.

So my question to you Tony is, now that the ball is back in my court, what options do I have? If I tell them that I don't want the car anymore, what consequences do I face? Also, I gave them a trade, my 95 Nissan Maxima (in working condition) and I'm guessing they still have it. I realized that I want a cheaper car . . . one that does not burn so much gas!! PLEASE HELP.

Frank Z.

Answer:

Hi Frank,

While it's true that the "ball is back in your court" to some extent it may not be that easy to just walk away from the deal. My advice to you is to contact the General Manager or the owner of the dealership - not the Salesman, Finance Manager or Sales Manager, because they are only thinking about their commissions - and explain that you made a rash decision in choosing the car you bought and that you want them to reverse the deal.

It depends on the fine print in the Buyer's Contract that you signed, and whether or not the dealer is willing to go along with your request in the hope that you may do business with him in the future. If they give you a hard time you may have to consult an attorney to find out what your legal rights are in your particular state.

As long as you don't sign the new loan papers the dealer can't get his money. This could be leverage for you providing they didn't already sell your trade and pay off any outstanding loan you may have had on that vehicle. If that's the case, well . . . good luck!

Just go talk to them and see if you can get them to be reasonable with you. You may or may not be legally bound to the deal.

All my very best...

Tony Iorio

An Update From Frank:

Wow, thanks for the fast response Tony. Let me give you an update on what has happened. Today I went to meet with the Finance Manager and they told me that the second bank would only finance $17,000 of the $19,000 needed for the car. He then asked me if I could put down an additional $1,200 on top of the $1,500 check and the $3,000 trade-in I already gave!

I told him that I did not have any extra money and they took the car back. They returned me my check and my keys to my old 1995 Nissan Maxima. I feel a combination of relief and disappointment - I'd already gotten used to the Explorer, but boy am I relieved that I don't owe them any money . . . or do I?

Frank

My Final Comments to Frank:

You should be OK. It sounds like they realized the deal couldn't be put together. The fact that they gave you back your check and trade and voided the deal shows that this dealership does indeed have some honor. A rarity . . . believe me!

Good luck, and next time you buy a car make sure to take plenty of time to think it through so you make the right decision. Car dealers operate under the mind set that there is no tomorrow. They are trained to get you to make an emotional decision on the spot.

Read Beware of the Spot Delivery! to find out what happened to you. I'd say God was watching over you.

May God continue to bless you,

Tony Iorio