After car loan papers are signed & car delivered, can the loan be kicked back by the loan company?

We purchased a new car. The finance person at the dealership worked with the finance company. We signed papers (purchase contract), the dealer representative signed papers, we drove the car home. A week later we got a call from the dealer and the loan company asking a question regarding an item on our credit. I answered the question to the loan company, the representative said everything was fine. Now, 2 weeks later the dealership is calling us saying the loan company kicked the loan back to the dealership and he's looking for alternate financing. What are our rights? We have a signed contract, insurance on the car & have gotten rid of the car we were replacing. What do we do if the dealership wants the car returned to them?

There is a rescission period where the dealership can cancel the contract if they are unable to find financing. The dealer does have the right to request you return the vehicle. If the dealership didn't send out a rescission letter in time (10 days in CA) then they are basically required to finance the loan themselves. The dealer might call and say they found financing at a higher interest rate, you can return the vehicle for no penalty if this is the case or you can resign at the higher interest rate. If they didn't send their letter out in time, tell them you don't want to pay the higher interest and you don't want to return the car and you have a valid contract. Tell them they should "buy down the interest" from the lender. Basically, they would give the lender money upfront to charge you a lower interest rate.

Also, credit unions tend to have better interest rates so see if a local cu can give you a loan. Source(s): http://www.CarLoanAdvisor.info

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http://insurancess.notlong.com

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