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How much time does a auto dealer have to deny you financing after contract has been signed?

Colorado Springs, CO |

I signed contract on 29 July 2010 understanding my vehicle would be financed through a specific financal instution. I traded in my vehicle and my after-market stereo was ripped out by me due to the trading in of this vehicle. Three weeks later Im being contacted being notified that the loan has been denied and I need to come in asap to work out issue. Im still being denied financing and being told to "standby" until they work it out. The dealer has offered me less expensive vehicles in which I show no interest. Do I have any options? Any legal advice would be helpful.

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Attorney answers 1


If the financing is declined, the dealer is required to return your downpayment and trade in unless you agree to a new deal. The dealer is not allowed to sell your trade until the financing is approved. You may be charged for the use of the vehicle you have been driving depending on the contract you signed.