Legal Question in Civil Litigation in North Carolina

Your options:

(1) bring the car back and leave and look somewhere else.

(2) find a way to pay for the car.

(3) see if you can keep the car by making a bigger down payment; or

(4) give the car back but see if the dealer can put you in a less valuable or older model used car such that you will meet the lender's qualifications.

You have been spotted a car. To avoid this problem, you should have lined up financing before you bought the car. If you wanted to get financing from the dealer then do not accept possession of the car and apply for financing first. That way, if you are rejected, then there is no problem other than getting any deposit returned.

If the dealer could not get it financed this could mean one of two things: either you have no credit history or you have a negative credit history. If negative, then you need to work on fixing your credit BEFORE you buy a car. Now that you have been rejected you may be able to get a free copy of your credit report if you get a letter from the lender telling you that it was because of items on your credit. If it was because you have no credit history - I would have to know more but you can get people like your landlord or utility company to report so that you can start to build a credit file. Also, apply for a small credit card and use it sparingly - every other month to buy a tank of gas or groceries and pay the bill in full. After awhile, see if your credit limits can be increased and soon you will have a high credit score. Its good to have a mix on your credit report - mortgage, car loan and no more than 2 credit cards.

For more on credit scores and reports go to www.myfico.com.

Always check your credit report from all 3 major credit bureaus BEFORE you go applying for a car loan.