If my auto loan fell through and I no longer want the car, can the dealership make me sign another contract with another bank?
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If my auto loan fell through and I no longer want the car, can the dealership make me sign another contract with another bank?
Asked on December 1, 2011 under General Practice, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
What you need to do depends on--
1) Have you already signed a contract of sale? If you have not, then you probably are not obligated to go through with the transaction; but if you have, then you have to check whether--
2) The contract of sale was contingent or noncontingent. If it was contingent, then as with a home sale contract with a financing contingency, the failure to obtain financing should let you out of the transaction. But if the contract was not contingent on the financing, then you are obligated to purchase the car.
If the contract states you have to try to get financing with another bank, you'd certainly need to try. But even if it doesn't say that, if you are obligated to purchase the car, you need to find the money for the purchase somehow, or else you will be in breach and the dealeship can sue you for what you owe under the contract. If obligated to purchase, you may wish to apply for a loan with another bank.
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