Legal Question in Business Law in California
Auto loan financing is very shady-how can I protect myself
I have a bankruptcy 4.5 years ago, so I'm trying not to be taken
advantage of by the finance dept. The dealer said I qualified for 2.9
percent interest, so I
signed the loan paperwork. It took a few days to get insurance, and
during
that time I learned they have 10 days to arrange financing or take the
car
back and return my $3500 deposit. If I can't get 2.9 percent, I don't
want it. I
called the finance manager and he said my paperwork had yet to be
approved, 5 days after signing. I told them I couldn't take posession
until I
had it in writing I was approved at 2.9 percent. A few days later I got
a fax
from him saying I was approved by the manufactrer at 2.9 percent,
and he signed it
and back dated it to the day I signed the contract. They're still acting
fishy
and won't give me a loan id number, saying I have to take the car
before they
can submit some more mysterious paperwork. I'm going to wait until
after
10 days from the date of signing and I get a verifiable loan ID
number, or a
payment book, or a letter from the lender before I take posession.
Am I being
paranoid or prudent? Anything else I should do or watch out for?
Thanks!
1 Answer from Attorneys
Re: Auto loan financing is very shady-how can I protect myself
I can understand your paranoia. In my experience, the dealer has not secured a loan until the new owner takes possession. However, it depends what your agreement with the dealer says. There should be a provision that says that if they can't secure a 2.9% loan to include the full term of the loan, the buyer, at his/her option, may unwind the deal without any penalty. Also, you should make sure that, if you get a 2.9% loan, it's for the entirety of the term, and not for a shortened period. Good luck to you!
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