possible switch

[kahmyah]

i have heard this happening..was wondering has anyone else experienced it..  This happended to a coworker of mine.  he recently bought a new car, we actually both were shopping for new ones at the same time..well anyway, he found his car, was and had lined up financing through my suggestion from Capital One which gave him a rate.  well, the dealership asked to see if they could lower is his rate if they could find financing for him.  well, they did by 2% points.  the rate they got was contingent on if they put it through since the transaction was done over the weekend.  he signed the papers and all with the new rate and everything seemed good.  well howevr, he gets a call back from the dealership saying that the bank somehow or another did not approve of the rate and he would either a have to get a cosigner or go with what he had from cap one at the higher rate that he walked in with.  never mind he signed all the paper work for the car under the rate that the dealership had approved off.  sounds crazy to me.  but has anyone experienced anything like that and if so, ah is that even legal or what..thanks..

[diva0969]

Stuff like this happens all the time. It happened to me last year. In my case, the deal was approved over the weekend and I kept calling to make sure things were ok. On Wednesday of the following week,  I was told that the financing fell through.  I politely brought them their truck back and picked up my trade-in.  Thankfully it was still there!! 

Most dealers now send the customer off with their new vehicles after having them sign a fuzzy document that states that the deal is contigent upon "final bank approval." If you can't get financing through your bank or credit union before you go to the dealership, I suggest not taking possession of the vehicle until the bank has given it's final ok and/or you get your payment book.  Otherwise, you're stuck with the car. And a high interest rate or payment, with practically no recourse.  

[kahmyah]

soif that is the case, is this legal.  even after they have gone and made inquiries on the credit report.  what about all the paper work that was signed under the new lower interest rate..what happens to all that..

[Anonymous]

Some states have laws that keep dealerships from pulling financing after a person takes possession of the car....but most do not and it is completely legal for them to do this.

[Anonymous]

anybody happen to know if this is legal in CA?

[kahmyah]

So what are his options then especially since he already took delivery of the car..any ideas?

[Anonymous]

Pay on the loan for 6 months to a year then refinance with a CU.