Question: After signing a loan contract with a car dealer for 8.99%, they now tell us, nine days later, that we have to sign a new contract at 10.25%. What can we do?
February 09, 2006
Hi Tony
We bought a car on February 1, 2006. Today the car dealer called us back to tell us they could not get the car loan picked up for the 8.99% interest rate on our signed contract.
They want us to come in and sign new papers for a 10.25% interest rate. We know this is wrong and this as we dropped the car off at the service dept. for an alarm system to be installed.
It has been suggested to us to let them keep the car. What are our options? We have a signed contract with the dealer on February 1, 2006 for the 8.99% rate.
Thanks,
Angela
Answer:
Hi Angela,
This is a typical situation that I get emails about all the time. You got caught up in what's called a "Spot Delivery."
I've written extensively about this problem. You can get a better understanding of this horrendous car dealer ploy by reading the following:
The second article listed above is from my Questions & Answers section of my website. You may want to search through some of the questions there for additional information.
The bottom line is that if there is no valid loan contract signed by you then the dealer can't get paid for the deal. Whether or not you can just give the car back may depend on many factors like if you gave them any money down, or if you had a trade involved in the deal, because then you have to get that stuff back.
There may also be legal aspects involved which I am not qualified to advise you on.
Your best option is to arrange your own financing. One excellent source is RoadLoans
. My daughter recently arranged car financing through them, and they were a pleasure to deal with.
The dealer is not looking out for your best interests when arranging financing for you, because they make a lot of money from the banks by doing this. It's better to take them out of the loop entirely when it comes to financing your vehicle.
I hope this helps . . .
All my very best . . .
Tony Iorio
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