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The car was bought yesterday and all the papers were signed. Financing was successfully arranged through the dealer. However, the car has yet to be driven off the lot. (The plan was to go to the dealer tomorrow to pick it up and drive it home.) Unfortunately, the buyer is simply in no position to afford the deal, and was misled about his ability to finance a cheaper used car. (Even though the buyer has a good credit score (700+), he was told that there was no way he could get a used car loan on a car worth < $10-12k. Meanwhile a quick search shows many lenders including CapitalOne giving loans on old used cars worth as little as $4k. Unfortunately the buyer did not even shop around for financing before going to the dealer. In any case, regardless of whether he could in fact get a car loan for a cheaper car, he cannot afford the payments + insurance on this car.)
Is it too late to back out of the deal? If the buyer refuses to pick up the car, does the dealership have to unwind the deal, even though financing has already been done? What should the buyer do to maximize his chances of unwinding the deal?
I don't know if this is relevant, but this deal was made at a less-than-upscale used car lot that is not associated with any particular manufacturer.
Contact your local consumer advocate news agency. They'll get the dealer to reverse the deal or make it right for the buyer. They hate bad news publicity.
If you are beyond the 3 day window you are SOL, so do this today.
That's only for sales that occur in the buyer's residence:
Where goods or services having a sale price of twenty-five dollars ($25) or more are sold or contracted to be sold to a buyer, as a result of, or in connection with, a contact with or call on the buyer or resident at his residence either in person or by telephone, that consumer may avoid the contract or sale by notifying, in writing, the seller within three full business days following the day on which the contract or sale was made and by returning or holding available for return to the seller, in its original condition, any merchandise received under the contract or sale.
To the OP - if the vehicle has not been registered or titled in the buyer's name then the dealer may unwind the deal. But he is under no obligation to do so. PS - I'm not a lawyer.
If you are beyond the 3 day window you are SOL, so do this today.
You should read your link and get through the first three sentences. That does NOT apply to car sales completed at the car lot.
Nice try, though.
OP, you have a car to sell now. Besides, the interest on a car sold for $4000 has to border on felonious sexual assault as that caris worthless to a lender in case of loan default. Take what you got.
Nothing is final unless the financing is approved, so not sure what the OP is asking. Is he approved for the loan and can't afford it or he is waiting for approval.? If the latter, it's all talk.
So small car lots make you buy cars you can't afford?
No, but they usually have cars that aren't worth the loan value, and trick people into getting some outrageous loan at a high interest rate. These guys, IMO, are lower scum that some new car dealers.
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