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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?

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Attorney answers 4


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

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


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.


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?

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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.

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