Need help asap!!!!!!!...
tell me how this can happen. My son purchased a new car 10 days ago, all the paperwork was filled out and his dad co-signed only for 6 months, all hubby had to do was show his pay stub. The car dealer said he was approved and that Capital One Bank approved it. He was to start his payments in Sept. They shook his hand and took a pic of him near his new car and gave him the keys and he drove off. Yesterday the dealer called and said the bank declined and he has to bring the car back or they will repo it!!! My son also did a trade in and we have full coverage on the car, full ins etc. We told the dealer we will get a lawyer. How can this happen? All the paperwork is LEGAL. What the hell is up with this? Please I need some info. Thanks in advance.
Answers:
It is legal. It happens when there is a delay in doing a credit report and the car dealer is so eager to get the deal closed they let the person have the car without the proper credit report.
You have several problems here. First is the dealer going to return your trade in or did it "just get sold"? You may need an attorney to get the value of the trade in.
Second, whose credit report showed up as a problem. You cannot co-sign a car loan for just 6 months. A person either co-signs for the entire term of the loan or does not. There is no such thing as a partial co-sign. Someone is fooling you about the finances. If it is your son with the credit problem find out what that problem is now.
In the document that your son signed for this car it said, in legal terms, that if the credit was not approved he would have to return the car. He has no choice. This is common now that car dealers are crying for business. That contract will also say what has happened to his trade in. Your son may have just lost both cars and will be paid only the 'blue book' value of the trade in. The longer you wait to do something the worse it will get. Bring the car back and find out about his trade in.
Next time son wants to buy a car have him read the fine print of the contract and not take the car home until all the credit is approved.
They probably thought it qualified for an automatic bank approval. Maybe once they sent the application into the bank the bank declined it for whatever reason. I would call an attorney asap especially if you have copies of all the paper work and sales agreements etc.
Just me. but shouldn't you call a lawyer and get some actual advice on this since that's your plan?
That happened to my sister, too, and basically the only thing you CAN do is give back the car. If a bank declines it, then they have that right, and there really isn't anything else you can do.
You could probably sue the dealership for the costs you took for the mistake, but that wouldn't really be worth hiring an attorney. Just find another dealership, and another bank -- maybe hit up the bank first this time.
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