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Even though you and the dealer agreed to the first deal, if the bank doesn't want to play, nobody plays. They are the ones loaning you the money, they are the ones who really call the shots.

Sure, the dealer wanted to close the sale. But I'm not convinced that they were trying to con you. They may have honestly thought that you would get approved without a down payment. I am the finance manager at a dealer, and I am having trouble getting deals approved this week that would have been no problem last week! The banks are really tightening up their criteria.

As far as your trade in: you sold them that car. They paid it off for you. They get to keep that car, since they bought it from you. Now, if you and the dealer agree to cancel the sale, they will work like hell to get your trade in back, and call your old finance company and ask them to reverse the payment they sent. Because YOU actually owe the DEALER money, and chances are that they aren't going to be able to collect it from you.

Also, they will probably have the general manager or even the owner of the dealer try to pull some strings with the lender to get the new deal done, since the dealer right now runs a risk of losing A LOT of money here. If you guys cancel the sale, and you don't pay them the difference between the trade in value, and the amount they paid off, they lose. They make no profit on the sale, since it's cancelled, AND they WAY overpaid for your trade!!!

Talk to the general manager. They will probably be flexible with you, if you refuse to put money down, since you got 'em by the balls here.

This is my thought. Of course it's easy for me and others to give advice because we aren't in your situation.

This is a common practice among unscrupulous dealers. You and the dealer agreed on the first deal. Hold them to the first deal. That's what you and the dealer signed. Even if there was a contingency for your financing, they should not have paid off your truck.

If they paid off your truck, they screwed themselves. They should not have done that until your financing went through.

Give them a choice and stand firm:

1. Stick to the original deal. This will force them to look harder for you.

2. Cancel the deal. Tell them to return your truck with the original financing you had on it.

3. Cancel the deal. Let them keep your car and the truck. Go find yourself an honest dealer. Make sure they don't ding your credit as a punitive action! Don't let them threaten you with a credit ding on your file.

From another web site with advice on this same subject:

"Somewhere in the paperwork that you signed, you're likely to find language that says the interest rate and payment is contingent on approval. You can refuse to agree to the new terms and take the car back. The dealership may then find a way to pressure its lenders to accept the original contract. The lesson here is that you should never take a car off the lot until you receive loan approval in writing from the bank. "

Don't let them bully you into a finance agreement that you can't afford.

Talk to the General Manager, or the Owner of the dealership. Make sure they know what's been going on. Have someone else, who knows something about contracts and the automobile business, look over your paperwork. This does not sound right at all, and if the dealership actually paid off your trade before securing financing, there could be something else wrong. Be vigilant

I've been in the car business--in finance--for 15 years, and now I am an automotive finance consultant to car dealerships, and I have to admit: In all my years of experience, I've never seen this situation arise. Paying off that trade was pretty stupid on the dealership's part.

I'd answer your question firstly by telling you that I *can't* answer it--and this is the wrong place to be looking for answers, quite honestly. Every state has its own unique laws with regard to auto dealerships in particular: what fees can be charged, right of rescision, disclosure rights, laws pertaining to refunds, cancellations, etc. They're endless. Each state also has its own laws, in addition to federal laws that dictate execution and cancellation of contracts and banking in general...and to add to that, lenders all have THEIR own sets of rules over such things as well. Even if you did reveal what state you're in, the bottom line is, you need to get yourself an attorney who knows contract law well. Remember that you don't usually need a retainer if you wind up suing the car dealership--the attorney simply gets a portion of your settlement.

If I had to hazard a guess, I would guess that the dealership would lose a court case on this. You MOST DEFINITELY will not be obliged to purchase ANY car from the dealership, and you are well within your rights to return the one you tried to buy. I would guess also that the dealership now owns your trade...but I can't say for sure in your case, or in your state. I do know that every dealership I've ever worked with or for has been very careful to NOT pay off the trade until the original loan is paid--no doubt because they WOULD lose if the matter presented in court.

Bear in mind that when a case goes before a court that involves a car dealer and a consumer, the court rules in favor of the consumer in an overwhelming majority of cases. In order for a dealer to win, he or she must have very clear evidence that proves their case...or else it typically defaults to the consumer. There is no rule in the court system that actually says that, but largely because of consumer advocacy, that just is how the courts lean. So consult with an attorney--most consultations are free.

One footnote that I feel I must add: There is nothing unscrupulous about a spot delivery, as no one is deceived or bilked, as long as a form is signed acknowledging that everything is subject to finance approval. Although the dealership indeed benefits from the spot delivery by taking you out of the market, YOU also benefit by being able to drive the car home on the spot (hence the name). That benefit may or may not be important to you...but it is to many. I'm told that European car customers, for the most part, must wait MONTHS for their cars.

I say all that because it honestly does not sound to me like the dealership set out to deceive or entrap you. They're guilty of STUPIDITY (in paying off the trade before the original financing was complete), but not of trickery, imo. It's an ugly situation, to be sure, but I truly don't suspect deception or entrapment.

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