Dealership changing loan terms???

[armedxwithxaxmind]

So I just purchased a brand new 2017 Hyundai Sonata Hybrid SE this past Saturday (3/24/18) & they didn’t let me leave till they made a deal with me within my terms while taking my trade in (2015 Hyundai Sonata still with $15,721 owes) So basically they got me at 84 months 5.39% APR $461 a month which includes gap they waived a down payment even after I offered. I get a call today to come in to finalize the loan, I’m just assuming they probably found a better rate. I go in & get told they got me a loan for 75 months, I’m confused cause this raises my monthly to what I didn’t want it to be at. I refuse to sign the new contact & they’re gonna get the person who made the sale look for options for me later today. I feel so lied to cause they made the terms to what I wanted so I can leave in the car I’ve wanted for awhile. What options do I have for them trying to change the contract terms? I’m from California if curious towards certain laws. I believe I’m able to cancel this loan if the sales person doesn’t make it to my terms I’m comfortable with.

[Kree]

Generally, and this might be different in certain states, what they did is legal. Dealers are allowed to assume that a financing deal will go through, and unfortunately sometimes they don't.

Your options are:

a. accept new deal

b. attempt to find independent financing.

c. return the car.

The good news is that generally you are not responsible for wear/tear on the vehicle, so if you return the car you should owe nothing.

The bad news is that technically the trade-in is a seperate deal, and they do not have to return it to you, however with an outstanding balance I would think they will instead of having to pay-off the remaining balance on it.

Good luck.

[armedxwithxaxmind]

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@Kreewrote:

Generally, and this might be different in certain states, what they did is legal. Dealers are allowed to assume that a financing deal will go through, and unfortunately sometimes they don't.

Your options are:

a. accept new deal

b. attempt to find independent financing.

c. return the car.

The good news is that generally you are not responsible for wear/tear on the vehicle, so if you return the car you should owe nothing.

The bad news is that technically the trade-in is a seperate deal, and they do not have to return it to you, however with an outstanding balance I would think they will instead of having to pay-off the remaining balance on it.

Good luck.

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Thank you it’s good to know I’m not forced to accept the new deal, I’ll be fine with they want to keep my trade in as long they pay off the balance. But I hope things go in my favor I love this car haha

[Kree]

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@armedxwithxaxmindwrote:

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@Kreewrote:

Generally, and this might be different in certain states, what they did is legal. Dealers are allowed to assume that a financing deal will go through, and unfortunately sometimes they don't.

Your options are:

a. accept new deal

b. attempt to find independent financing.

c. return the car.

The good news is that generally you are not responsible for wear/tear on the vehicle, so if you return the car you should owe nothing.

The bad news is that technically the trade-in is a seperate deal, and they do not have to return it to you, however with an outstanding balance I would think they will instead of having to pay-off the remaining balance on it.

Good luck.

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Thank you it’s good to know I’m not forced to accept the new deal, I’ll be fine with they want to keep my trade in as long they pay off the balance. But I hope things go in my favor I love this car haha

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I was wrong, some states also require the dealership to "internally finance" the deal. Because they said you would get X percent for X months, they must honor that promise.  I would look into your local states rules.

Cheers.

[Loquat]

What the dealer did is often referred to as a "spot" delivery.  In this process the dealer lets you leave with the vehicle and terms that they believe they can get you financed for.  When the lender doesn't allow for the deal to be assigned to them then the Finance Manager has to try to hang the deal with another lender.  When this happens sometimes the terms are changed.  This should have been explained to you.  

When I was spinning paper in the box I would always tell my customer that the deal was conditional base on verified info that they provided (required for most subprime deals) and the loan being assigned to a lender.  There was always seperate document that I used and is often referred to as a bailment agreement.  This along with a couple other documents allowed for a spot delivery.

My customers knew that when they left there was a chance that everything we signed could potentially be undone pending loan assignment.  I didn't really care for spot deliveries but I also didn't want my customer to leave and then go buy the same car from the next dealer down the street.  Lots of things can happen if you let a customer leave without a car...and none of those things are rarely good for the dealer.   I can say in my time of financing, I never had to completely unwind a deal...changed terms on lots of them though.  It's just part of the business.  The best thing a customer can do is refuse to take delivery until the deal is done...but most customer wouldn't use that option even if presented to them...after all, they want their new car!  And to be honest, a sales man and myself as the finance manager would do everything to get you out the door in that car...via Spot Delivery.

A good finance manager wouldn't let you leave with any "useful" paperwork until the deal had been funded anyway.  The paperwork you actually need would come to your home via certified mail some days or weeks later.  

Best of luck OP and I hope everything works out for you.