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What can happen if the dealership can not find a lender for the full amount of the loan?

Waldorf, MD |

I signed a loan contract two weeks ago for my car. Today I received a call from the finance guy telling they can only get a loan for $25,000 which is $5,000 short. They now want me to go to my credit union and get a loan for the full amount. I also traded in a truck with negative equality. My truck has not been paid off yet. And I had to make another loan payment on the truck. Tags for the truck have been turned in. I also had to get a Maryland inspection on the new car which it failed ($87 + $20) Is this legal?

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Attorney answers 2


A few things here: first, there's sometimes a clause in the contract that allows you to cancel if you cannot get fully financed. So if you cannot get the full balance, then you may have that right. But you'll need to carefully read the contract. If you purchased the car from a dealer, they should have already had the inspection complete. They do not have the right to sell a car with a bad inspection because it cannot get tags through the MVA. You may be able to cancel the contract on this ground as well. It's tough to say without reading through your paperwork. Start there.

This is not legal advice nor does it create an attorney-client relationship. This is for education and informational purposes only. It is always recommended that you contact an attorney with any concerns as each individual case is unique.


You just agreed to spend $30,000 for a car that can't pass inspection? What am I missing?

You have a complicated set of facts here. I suggest you consult a local consumer protection lawyer with experience in vehicle sales. You can find some on the website of the National Association of Consumer Advocates,

Disclaimer: This site exists to provide information only. It is not legal advice. Answering your question does not create an attorney-client relationship. I am a Massachusetts lawyer. Any information provided on this site does not, except as explicitly stated, imply familiarity with laws or procedures peculiar to your state which may differ from those where I practice.

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