Legal Question in Credit and Debt Law in California

Hi,

I bought a new car from SF Honda, I was told that I was approved for a 0.9 APR if I put down $13,000 which I did. We signed the contract and 2 week later I get a call saying that the bank (which is Honda) looked at my credit and they can't approve 0.9 and it's going to be 3.9...AFTER they had already checked my score and approved the 0.9. Is this legal.

Thanks,

Cal


Asked on 9/24/10, 11:28 am

1 Answer from Attorneys
Steven Simons Law Office of Steven A. Simons

No it is not legal - - but it is a very common practice. My office sees this practice all of the time.

Many times the dealer will "roll" the car and rely upon the language on the back that says they have 10 days to place the contract. Then, after you get home and show all of your friends the new car they will call and say they can not get the financing as agreed. Knowing that you will be embarased by telling your friends you did not qualify, the dealer then offers to let you have the car at different terms.

Your options are to 1) Return the car and obtain your 13K back (then go shop elsewhere); 2) Agree to the changes in the contract; or 3) Consult an attorney that can review the facts and contract and determine if there is a basis to force the dealer to stand by the contract.

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Answered on 9/29/10, 12:19 pm


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