Dealer says we may have to Renegotiate the Loan

[ahedgpe]

Jurisdiction

Colorado

Hello All, On 9/26/15, we bought a 2015 Honda Pilot directly from a Honda dealer. We left and then yesterday, after I dropped off the down payment, the finance officer said he was having trouble getting the loan financed. He said we may need to renegotiate if they cant get it financed. I read over the sales contract and there is a "Seller right to Cancel" section (that is not signed by either party) which talks about how if the loan can't be financed, it may need to be negotiated, or the vehicle turned in. Im waiting for a call back from an attorney currently. I understand I dont have to renegotiate, but since the section regarding "Seller right to Cancel" is not signed, do they have a legal right to try to get me to renegotiate?

Id rather know my options before getting the call back from the dealer!




(Please keep your question CONFINED to ONE thread. I have corrected the EXTRA posing, OP.)

 

[army judge]

Hello All, On 9/26/15, we bought a 2015 Honda Pilot directly from a Honda dealer. We left and then yesterday, after I dropped off the down payment, the finance officer said he was having trouble getting the loan financed. He said we may need to renegotiate if they cant get it financed. I read over the sales contract and there is a "Seller right to Cancel" section (that is not signed by either party) which talks about how if the loan can't be financed, it may need to be negotiated, or the vehicle turned in. Im waiting for a call back from an attorney currently. I understand I dont have to renegotiate, but since the section regarding "Seller right to Cancel" is not signed, do they have a legal right to try to get me to renegotiate?

Id rather know my options before getting the call back from the dealer!

You can try to cancel, ask the dealer and see what response you receive.

Cases like your happen everyday.
Belinda buys a car, signs contract, drive sit home.
A week, ten days later the dealer calls Belinda and tells her the deal fell through.
The dealer might say, we've tried to get another lender to do the deal, no takers.

That's where you stand.
Those purchase contracts have an area that addresses what happens if Belinda takes the car back.
The dela can generally be voided, but at a cost.
The cost is assessed per language in the contract.
The cost is for RENTING the car for a week, three weeks, two months; however long Belinda (and YOU, OP) have enjoyed use of the dealer's car.

That's where you stand, OP.
No doubt the contact is voidable, but someone is going to be stuck with a bill.
How much will it cost?

Read the contract, as its described with great specificity in your contract.
Its at least $500, often a $1,000, or more!!!!

YMMV

 

[txls]

I've never seen or even heard of a dealership charging rent for the use of the car in this situation. Granted I've only worked for 5 dealerships in 2 states. As far as the rest, since you have already contacted an attorney, you really don't need anything from us.

 

[ahedgpe]

I've never seen or even heard of a dealership charging rent for the use of the car in this situation. Granted I've only worked for 5 dealerships in 2 states. As far as the rest, since you have already contacted an attorney, you really don't need anything from us.

Thank you for the posts, I would always like to have as much insight as possible. So, we will see how it turns out.

 

[army judge]

I've never seen or even heard of a dealership charging rent for the use of the car in this situation. Granted I've only worked for 5 dealerships in 2 states. As far as the rest, since you have already contacted an attorney, you really don't need anything from us.

I call it rent,
The contract calls it a penalty.
Normally the dealer will want some money for the mileage the person has put on the car.

It might not happen, but it very often does.
Most of the truly reputable dealers, high volume dealers, only want the car returned in a timely manner.

Others, well YMMV.

This explanation offers more insight:

OK folks, 25 year industry vet here. Here's how it works. Many times a dealership will "spot" deliver a vehicle to you on a loan or lease contract, even if the lender hasn't approved the deal. (Happens evenings and weekends.) They have personnel whose responsibility it is to grade a deal by looking at a credit app and credit bureaus (I did a bit of that in my career). These folks will figure out what bank they think will buy the deal, and have you sign contracts from that lender. 99% of the time they are right; it's that other 1% that we are discussing. If the F&I person can't convince the bank to approve the deal that they contracted, they may be in trouble, but usually not. One of the documents in your package (it's in the glove box where you left it) is probably a "spot delivery" form. This document informs you that your loan is not yet approved, and your vehicle may be subject to recall if the bank denies the deal. The document is legally binding if properly prepared, which it probably was. So, if you get this call, what do you do? You can tell the dealer that you have no interest in any deal that is not identical to the one you signed, under any circumstances. He can then offer you a deal with another bank (he may have to lower the price of his rate markup to meet the terms; he probably will). If he refuses, tell him that he can come to get the car, but you won't release it until you get a certified check for the amount of money you put down. If there is no spot delivery form, the dealer is in trouble. He has no legal right to take the car back. If you like the car and the deal, tell the dealer he is screwed. You want the deal you signed and don't care about his problems. Do not go back to the dealership; you have more leverage at home or work. Let him sweat; he's in a compromising position and will make major concessions to get you to agree...

LPT: If after financing a car and driving it off the lot, the dealer calls you and tells you the financing fell through and you have to sign a new contract/put more money down, it's a scam solely designed to squeeze more money out of you. • /r/LifeProTips







Buying a Car with Bad Credit - What NOT to Do


What are the ins and outs of car loans? | Personal Finance @ Duke