Legal Question in Credit and Debt Law in Pennsylvania

The question makes no sense as posted.

Legal standing to do what? I think I know what you are asking. The answer is NO. You were "spotted" a car it is a legal practice. You have an obligation and responsibility to either pay in full for the car if you wish to keep it or return the car if you cannot. Anything else is theft. You cannot expect the dealer to take your monthly payments.

A car dealer is in business to sell you cars. However, they do not loan you money to buy cars. You fill out an application for a loan. But the dealer will "spot" the car to you and let you leave with the car because the dealer assumes that the loan will be approved by some lender in most cases. The dealer also hopes that by allowing you to leave with the car, you will not want to bring the car back if you are not approved and that you will have to find some other way to pay for it.

If you have been rejected for a car loan, then you have 3 options: (1) return the car; (2) find another way to pay for the car (either get a loan with another lender, get a co-signer (I am not a fan of this) or put more money down); or (3) if you are trying to buy too much car, see if the dealer will let you buy something cheaper, assuming that you could get approved for that.

I don't know why you were not approved, but the reason is that you either have no credit (possible but not as likely) or bad credit (very possible).

The way to avoid this whole game is to get your credit report in advance and work out any problems with your credit so that you will not have a problem. The next step is to go and get approved for a car loan - credit unions are a great place to start because they give much better rates than car dealers and will give you pre-approval of up to a certain amount. You then take the pre-approval amount and go car shopping and find something in your budget. There are no surprises. The other way to avoid this is to avoid car spotting. If you want to use the dealer financing, then you apply for the car loan but do not take possession of any car. If you are rejected, then you are rejected and go elsewhere. If you are approved, then you go back to the dealership and sign the paperwork and pick up your new car.

You do not detail any of the circumstances here surrounding the loan. I suggest you go and talk to someone at the dealership. Before you do, you had better get a copy of your credit report to see what is on there if that is why you cannot get approved for a car loan. You can then see if the dealer can shop you around to another lender or put you in another car. Or you can just return the car and smarter about this the next time.