Why is the Dealership Asking Me to Sign a New Contract?
Typical scenario: You purchase a car and drive it home. A few days later, you receive a call from the dealership, informing you that you did not qualify for financing and you will either need to return the vehicle or sign a new contract. What should you do?
In fact, the dealer can cancel the purchase contract within 10 days. If they cancel the deal, you will have to return the car, and the car dealer must give you back any down payment or trade-in that you gave with the purchase.
However, if the dealership does not contact you within 10 days of the date on the purchase contract, then the purchase is final and cannot be canceled. Most importantly, a car dealer can’t force you to sign a second contract.
Keep in mind — if the dealer cannot finance you on the terms of the first contract, it is very likely that he initially knew that financing will not get approved. They hope you will love the new car so much that when they call you a few days later and tell you have to sign a new contract with higher payments, you will agree to sign it. Obviously, the dealer is just trying to make more profit by increasing the down payment, and/or the interest rate.
Consult an Auto Dealer Fraud Lawyer
If you believe you are a victim of auto dealer fraud, you should first get legal advice. Speak with a trusted auto dealer fraud lawyer right away by calling at (818) 553-1000 for a FREE consultation. Attorneys at the Margarian Law Firm will evaluate all aspects of your case, explain the available options, and help you get the compensation you deserve.