I bought a car at a dealership a little over a week ago, signed all the paperwork, have a finance agreement, and drove it off the lot with plates on the car as well as full coverage insurance in my name. The dealership sent a form home with me asking for a few additional items, which I've provided, then called me a few days later to say the financing fell through, that I need a co-signor or I need to return the car. I went ahead and sent over an app for my mother to co-sign on Friday of last week and haven't heard anything back from the dealership. I've called several times with no return call and this dealership has shopped my financing out so many times - I have 16 hits on my credit report and no idea what's going to happen with the car. I have ample income and credit score for this deal which I'm assuming is why they let me drive it off the lot. Now I'm seeing information on the internet about "spot delivery" scams and I'm concerned that I may be a victim...do I own the car or not?
1 Answer from Attorneys
Review the agreement that you signed. Most Auto dealerships include a "Rider To Installment Contract" that generally states something something similar to this:
"Customer agrees to return the vehicle within 24 hours after notice that DEALERSHIP has no obtained third party approval and DEALERSHIP agrees to return any down-payment or trade-in (or proceeds from the sale of trade-in) by the customer."
However, I have had clients who were in similar situations and the DEALER did NOT have a "Rider" that was signed and the dealership was stuck accepting payments from the BUYER (The dealership in my clients' scenario came up with alternative financing rather quickly!)
To be thorough, have an attorney review your agreement so you can deal with the Dealership confidently, knowing what your options are.
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