Overhaulin'

Help with a legal Question about a car sale from a dealer?

i bought a new truck from a large car dealership in ohio, i had to have my fiance do the loan in her name because of credit issues with myself, anyway i have had the truck for about 3 weeks i bought items for the truck i just got my insurance card for the truck in the mail, i have the bank title in my fiances name, the dealer called me today and said the loan company backed out because i was not on the loan, my question to you is, is this legal? i traded a 99 ranger in with them that was in her name as well, she already signed papers we have the title from the loan company that the truck is in her name and that the lien holder is the company who wants to back out, anyways the dealer wants to give me back my ranger, so that means that the payment on the ranger would be 3 weeks later, please any help would he great, thanks in advance i am insured on this new trucki just dont see how this matters, i'm sure there are alot of you out there that drive you partners cars or trucks

Public Comments

1. If you are also on the insurance then it should not matter...basically you are driving your fiance's truck. Big deal. The loan and the insurance is in her name and you are on the insurance policy as a rider. None of the dealerships business. Sounds like there is some other issue and the dealer is using this as an excuse to get out of the deal...but that is just a guess.
2. i don't understand how they could back out. the paperwork has been signed and you've had it for three weeks now. i would contact the bank you got the loan from and see what they can tell you. i would think it's too late for them to back out now.
3. It is the option of each individual lender, whether to allow ownership of collateral in someone other than the loan applicant. We have more banks who will not allow someone not on the loan contract to be on the title, than the other way. It is completely legal to do it this way, but your salesman should have told you about the restrictions of the lender before proceding with the contract.
4. I'd say at this point the dealer isn't the issue. There is probably nothing that they want more than for you to KEEP the truck. They've already logged it as sold and probably paid the salesperson on it. It is in their interests, and yours, to keep the truck. Banks, on the other hand, have different motives. Many times a dealer will contract you on a car and send you away with it on the PRESUMPTION that the bank (or A bank) will approve the loan. A dealer doesn't neccessarily have an instant approval (like if you contracted on a weekend or bought the car on a holiday or late at night) but, based on a finance manager/sales manager opinion, they'd be able to "get the deal bought." They've probably been trying for the last 3 weeks to get the bank to approve the loan but for some reason the bank is hesitant. Why? Does your fiance have another car loan in her name? Is she cosigne on some other big loan (car or house)? Does she make enought money to cover her bills (debt to income ratio)? If she has another auto (other than the one trade in) why would, in a banks eyes, she need another? For her fiance, right? Why can't he cosign? Why aren't you on the loan? If it's ONLY b/c of credit, perhaps you can talk to the banks loan officer and explain your situation. It may be that you need to add your income for the bank to approve the loan. Show the bank that the BOTH of you make enough money to justify a new truck payment and that it is not a risky deal for the bank. Really, again, it is the banks decision to not fund the loan for the dealership. It is very interesting that you have the title from the loan company (for the new truck, right?) with that bank being listed as a leinholder. Contact the bank. Find out why they're not funding the loan. It's possible when they looked at your fiance's credit they found something not reported. Short answer, though, is Yes, it's legal, if the bank never funded the loan in the first place. Regarding the title. That probably would have come from the dealerships title department (as they had the title originally) and they could have added the bank as a leinholder. That doesn't mean that the bank paid the dealership for the truck on your behalf. So, essentially, your fiance signed a contract at the dealership to purchase a truck on the presumption that the bank would fund the loan (pay the whole amount to the dealer, you make payments to the bank.) When the bank looked at the deal they declined. The dealership tried for 3 weeks to get it approved and couldn't. You're still driving their truck (which hasn't been paid for by you or the bank) and they need it back. It's a crappy deal but unfortunately it happens sometimes. I can guarantee you that the dealership doesn't want the truck back (nor an unhappy customer). I think that you may be able to be compensated for the things you've put on the truck and the insurance you've paid. But call the bank and see if there is someway they can approve your loan. Why would a dealership send you away in a car that they didn't have approved yet? Good question. Ask the finance manager (the person you signed the contract with.) Good Luck!