It’s not uncommon for a dealership to call a customer days after they drove off the lot to tell them that they did not qualify for the financing they had been promised. Not only does this mean that there is a good chance that you’re interest rate and monthly payments may increase, but the dealership will want you to sign a second contract as well. What happens to the first contract? Is it void? What should you do if the dealership wants you to sign a second contract?
The dealership does have the right to cancel your contract within 10 days if they cannot secure financing at the terms agreed to in the original contract. When signing a second contract with the dealer, you must be very careful to make sure that they don’t change any other terms of the agreement beyond what is discussed. They could change other elements that increase the total price of the car, or add fees that shouldn’t be included. Many consumers have been scammed by signing a second contract from a dealership, but there are ways to protect yourself if you want to keep the car.
Unfortunately, there is no single trick that we can warn you to watch out for on a second car contract. Dealerships have a variety of ways they can update the original agreement in their favor. The most common issues that we see occur happen when the contracts are backdated. Was yours?
How It Should Be Handled
If the dealership was unable to secure financing at the rate agreed to on the original contract, you should really consider whether or not you want to sign the second. Dealers offer amazing financing rates to customers in order to get them into the vehicle, and off the lot – even if the customer doesn’t qualify based on their income and credit scores. We often see these types of violations from dealerships that advertise they can finance anyone, regardless of credit.
Rather than leave it to chance, you should have an auto fraud attorney review your situation before signing a second contract with the dealership. We can let you know what items you should be watching for, and help you determine if you should or shouldn’t sign. Our attorneys will take the time to review your original contract, and let you know what to watch out for when you go back to the dealership.
Call in for a Free Consultation
Our auto dealer fraud clients often call us from the fraud dealership, or while on the go with their vehicle issues. Because of this, we offer free legal consultations over the phone for those in a hurry. In most cases, we’re able to get you on the phone with an attorney immediately, and if none of the auto attorneys are available right away, we will schedule a call within the next couple of hours. Call us today to find out what rights you have.