What are my rights if I bought a new car that I was able to take home but now I find out that my loan was not approved?
Question Details: I bought a new car almost 10 days ago. I was told that I was approved through a credit union and they let me drive the car home. However, today I received a call stating that the credit union would not approve me due to the loan amount. I was then told by the dealer that they got me approved through another bank but the interest rate would be higher, thereby making my payment go up. I have not gone back to sign the new documents. I'm wondering what my options are to get out of this vehicle now. I traded in a car and was wondering if I would be able to get back in that? I am not sure how they let me drive off in a brand new vehicle when was not secured.
Whether or not they *should* have let you drive off in the new vehicle, you did: you signed a contract/purcahse agreement for and purchased the car and therefore must pay for it--you are contractually obligated to pay for it. If your original financing fell through, you have to find alternate financing--e.g. the higher-interest-rate financing they found for you. If you don't find alternate financing, you will be in breach of the purchase agreement and they can both repossess the car and sue you. Say, for example, that the car costs $20k; say that due to depreciation, if it were repossessed, it would be worth $16k; they could repossses the car and sue you for the extra $4k. You have no right to get out of the contract because the financing feel through; it is your obligation to find a way to pay for the car you purchased.