I live in California. Bought the vehicle February 5 now March 3. Got letter from bank that the loan was denied. Is the 10 day rule in effect? Also I traded my old truck in. They have paid off that loan. If I have to give the new truck back. What and how will the dealer deal with the loan issue with my old truck? If they did get the bank to give the money back. I would be behind in the payments for close to two months now and am I liable for late fee's and will that go on my credit report. I personally think the bank I had the loan would simply be Nope we are not giving you the money back and not reinstate the previous loan. Or at least I think.
I am not licensed to practice law in your state.
This is quite common. The dealership wants to make the sale so bad they will have you sign a contract with "projected" monthly payment and interest rates; let you take the car home; and then try to get the financing at the terms they projected. Sometimes they can't get that done and multiple credit applications are made on your behalf which drops your credit score in the process. Some Toyota dealerships have a special notice page warning that this may happen. You should check your contract for such warning. If it is there, you may have already agreed that you would sign a new contract in this situation. If you are unsure, use the "Find a Lawyer" feature to connect with an attorney in your area. Many will offer free initial consultation.
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