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Can a Dealership take a car back after a purchase if you sign a contract after financing approval?

Chicago, IL |

We purchased a car, put the down payment and signed the contract after getting approved. The Dealer then called 2 weeks later saying the Lender backed out and they didn't get funded so we have to return the car. I contacted the lender and they said they did no such thing, and that the Dealer submitted another contract for another vehicle the same price. Present day, now almost a month after the purchase, they sent 2 thugs to my house to try and take the vehicle from us. They keep saying we didn't get approved, but the Lender is not saying this. So do we need to return the car and get our money back, or allow them to put us into another vehicle? Or do we hold on to the vehicle and fight with litigation?

Attorney Answers 4


  1. Yikes. Contact an attorney that deals with consumer rights matters. You should be able to find several here on avvo.com.

    Please note that this answer is for informational purposes only and should not be construed as legal advice or an offer to form an attorney-client relationship. It is always advisable to seek the help of an attorney licensed in your state before proceeding on any legal matter. Please feel free to contact me with the information listed below. Good luck! Napleton Law, Ltd. 312.255.0115 jerry@napletonlaw.com www.napletonlaw.com


  2. Something definitely sounds wrong here. Make sure the car remains i a safe place where repossessors cannot get to it. Call a consumer rights attorney immediately.


  3. Certainly sounds like either shenanigans or a case of the right hand not knowing what the left hand is doing. So, does the lender have a loan booked for the car? In other words, according to the lender, do you owe them money at this point?

    By the very nature of Avvo, you have only provided limited facts and no documentation, therefore, our response to your question is treated only as a hypothetical, and as such it is merely general in nature. You should not rely on this response in taking or forgoing action in your circumstances without discussing this matter with an attorney. If we had the opportunity to ask you sufficient questions and review relevant documents so that we were satisfied we had all of the relevant facts and circumstances, our response might differ significantly. Without the opportunity to ask you questions, and review all relevant documents and memoranda, we are simply unable to provide any form of legal advice. Our response to your question does not create any attorney-client relationship between us, and we are not acting as your attorney. We reserve the right to decline representation in any case. By answering your question, we are under no obligation to answer further questions. There are very specific deadlines for filing a lawsuit, replying to a lawsuit filed against you, or taking other action in order to preserve your legal rights. You should contact an attorney immediately in order to be fully advised of your rights, and so that you are aware of those deadlines. If you fail to act within the required time frame, you might be forever barred from asserting your rights or defending your position. The attorney answering this question is licensed in Illinois and Iowa only.


  4. You should see a consumer law attorney and have them review the documents. They cannot force you to sign a new contract, and car dealers often play this type of game to try to convince you to agree to worse terms. If they truly couldn't find financing on the original terms, you would have to return the car, and they would have to return your downpayment. They would also have to send you an adverse action notice about the denial of credit. The failure to send an adverse action notice is a violation of a federal consumer protection statute, which could give you a claim against them for statutory damages. Your strategy at this point should depend on whether you think you got a good deal under the original contract, and whether the lender has paid them for the original contract and thinks you have loan with them. A consumer law attorney can help you sort all of this out.

    The above response is not intended to create, nor does it create either an attorney-client relationship or an ongoing duty to respond to questions. It is intended to be solely the educated opinion of the author and should not be relied upon as legal advice. Some responses may be advertising material. The response given is based upon the limited facts provided by the inquiring person and additional or differing facts might change the response. Attorney is licensed to practice law only in the state of Illinois. Responses are answers to general legal questions and the inquiring party should consult a local attorney for specific answers and advice. Answering this question does not create a duty to keep information confidential, nor does it prevent me from representing an adverse party. Advertising Materials.

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