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Is it considered "deceptive" if a car dealer is unable to provide proof of denial for financing from a bank I know I'm financed

Mesa, AZ |

I have received financing from my bank for a vehicle. The car dealer and I settled on a price for a thousand dollars more than what I was approved for. They said they should be able to get the same rates with the extra thousand dollars. The next day I called my bank and up-ed my financing a thousand dollars to meet the requirement just to see if my rates would change and they didn't. So I know I am approved and that the car dealer should have no problem financing me for the agreed amount. They then called back today trying to pull a yo-yo financing trick saying that they were unable to finance me for that amount and they need more money down. However, they have no letter of denial or proof of denial. Is this considered a deceptive trade practice? Also, they used the same bank as me

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Filed under: Credit Used cars Car loan
Attorney answers 2


I assume this is a used car dealer, and not a new one?

They make money off playing the financing games.


Then, have your financing in place before you go to the next place, and don't discuss financing with them, nor prices above your approval.


Since you have financing lined up you are not really damaged by these sharp sales tactics because you do not have to accept what the dealer says--you can just use your external financing. The dealer is, however, required to provide you certain information pursuant to the Fair Credit Reporting Act. The dealer must supply the name of the credit bureau they contacted. Some dealers send these notices by mail a few days after a denial. You also have the right to get a free copy of your credit report (the one they pulled). If you don't receive either of these after request, you might have a cause of action. I know of no requirement in the law that a dealer provide you "proof of denial" but I agree with you that these types of practices are suspect. It sounds like you are an educated consumer and will end up getting the financing you desire.

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