Legal Question in Consumer Law in North Carolina

If the deal for the first car did no go through, it means either that you have bad credit or that you were trying to buy too expensive of a car. Nevertheless, the dealer was stupid for "spotting" (giving you a new car without the approval of the lender first) and paying off your trade. I still think it is better to be honest in this case.

How much did you owe on the old car? The car dealer is not a bank unless its a pay here kind of place. If it is, then you may be able to work out something whereby the car dealer can have a lien on your title and you can repay the dealer. If not, the car dealer will find a way to get their money. You may have to go to another credit union or finance company and borrow enough to reimburse the dealer and have the finance compay or credit union put a lien on your car title. Or maybe you can deal with the former lender and get them to reimburse the dealer and put the lien back on the title. Since it was the dealer's screw up in the first place by spotting you a car, I think the dealer fairly can be made to pay for excessive costs for recording the title again.

The other alternative might be for them to sell you a car that you can afford and have you roll the cost of the remainder into the new lien. This is not my preference.