question for skip

[LDOGG]

My wife just purchased a new vehicle. She signed all of the paperwork and now the dealership is saying she doesn't have enough credit and will need a co-signer or they will need the car back. We have decided to take the car back because is sounds kind of weird to me. Why would they have her sign the loan and not really be approved for it?

[SALEEN449]

do you have copies of the paperwork??

[LDOGG]

yes. She has copies of everything. They told her that she didn't have final approval when we went to take the car back. They then decided that they could approve her for a 9% interest rate when the original rate was 5.9. I just couldn't figure out how they came up with her rate and payments without loan approval. We just gave the car back.

[SALEEN449]

many times a dealership will contract a customer on an assumed approval...usually happens when the deal consumates after the bank has closed for the day.....usually they put you out on a "letter" that allows you to drive the vehicle while the deal is being approved under the understanding that if they can not secure the financing under the terms agreed to....you bring the car back.....or reagree to terms with them