So I got a car about two weeks ago at the Volkswagen dealership its a used car, its my first car my mom put it under her name but I'm the one paying for it I gave the down payment and everything. My mom got approved and everything was good we made the deal all the paper work was signed and everything. So 2 days ago she receives a call from the dealership asking if she has another car loan with another lender and she says yes because she got a used car a couple months ago. She asked them if there was a problem and they said no. So they call her again today but she missed the call and they left her a voicemail saying they need her to come back and sign with another lender? Has this ever happened to anyone? is there anything we can do?? We don't really understand why? Also could it be that they just want to try and get us a higher interest rate since they found out that my mom has a higher interest rate on her car than what we got on mine?
1 Answer from Attorneys
Dealerships sometimes do this as a trick to get you to agree to buy a car only to later put you into a less favorable loan. This is commonly referred to as a spot delivery scam. Basically if the purchase agreement has language that it is subject to financing and the financing fell through (because the lender rejected your mom's application or the dealer pulled the application to find a lender with a higher interest rate) then the sales contract is not valid without payment in full or new financing. Without seeing your purchase agreement it's impossible to know what the language says but this is most likely the case.
The two best options are to either return the car to the dealership for a refund of what you have paid them or have your mom obtain financing away from the dealership and pay the dealership the remainder of what is owed on the car. The new financing from the dealership likely has an astronomically high interest rate.
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