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Dealership asks me to sign new contract because bank cannot approve x amount?

Finance representative called me 2 days after purchase saying that i need to sign new car loan contract. Will be a smaller monthly payment, They said that it will be the same APR and same lender but they can only grant me $1000 less than the original deal. Today is the 3rd day after purchase and im set to meet with him today. Could he be lying as bait? Will they take the new car? i traded in my old car for $20000, will i have to worry about any of this?

Update:

They are dropping the price on the warranty to meet loan amount.

8 Answers

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  • 9 months ago
    Favorite Answer

    Its common if you purchase a car outside of bank hours (pretty much any evening or weekend or holiday), that the contract you sign was actually a contract authorizing the dealer to obtain financing for you. They take their best guess at the terms (rate, amount, etc) that they'll be able to get you.

    That contract also includes a stipulation that if they are unable to find a bank to finance you at the terms they thought they'd get you, that you will either have to agree to the actual terms offered by a bank or return the car.

    This is common and standard when you purchase a used vehicle at any time when they can't actually communicate with the bank on the spot.

    So yes, you MUST return to the dealer and either sign the new paperwork for the updated loan terms or return the car.

    If the loan amount is $1000 less than planned, then they either have to reduce the price of the vehicle, increase the credit they give you from your trade-in, or demand $1000 from you (or some combination of those 3 which adds up to the $1000 difference).

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  • Anonymous
    9 months ago

    sounds like they lender wont approve the full amount so they are lowering the price by $1000. Which means you probably greatly overpaid.

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  • 9 months ago

    Sign it, if you want the car from him.

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  • 9 months ago

    The bank could not approve you because there's a problem with your credit score or your income, or both. You can either sign a new revised contract or not buy the car.

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  • 9 months ago

    The only way the APR can be the same is:

    Option A- if they are requiring an additional $1000 downpayment,

    Option B- they are reducing the price of the car $1000

    Option C- or they are increasing your trade-in $1000 so it is now $21000

    If it is Option A, do you still want the car?

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  • Anonymous
    9 months ago

    Find out exactly what the changes are and what they are proposing and then come back and ask us.

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  • Anonymous
    9 months ago

    The only way you are going to find out is by TALKING TO THEM. The car sellers wants to sell the car....but it is not what you had initially hoped the bank would agree to so adjustments have to be made. You will only find out what is going on by talking to the dealership(he knows ways to get around bank disapproval and has to work it out with you. Dealer is having to be "more flexible" on the profit he is making(that is my guess). He is not as happy about it either.

    But your new deal will mean lower payments per month so why are you complaining?

    You have to sign new papers to be in agreement to it because right now the former documents are null and void. They have to do the paperwork first otherwise you did not buy the car.

    . Time to be a sheep and not think so hard about it. They do not know if you are a "police plant" to catch them in the act of doing an illegal act or just another average person. They are not willing to be caught in the act of doing something illegal as they would "Lose their dealership license" just for one car sale. The ONE car sale ain't worth it; for them to "possibly lose their license".

    . So you can trust them to be doing it right. [Dot all the "i's" and cross all the "T's".]

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  • Anonymous
    9 months ago

    Do they expect you to pay the $1000 at that time or are they dropping the price by $1000

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