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Auto Dealership Fraud..... What do i do about this loan?*

bought a used car from a dodge lot. put 3800. down and drove off the lot. i was told i was approved for the loan. i then was told capital one refused the loan so i reapplied again and capital one told me i was accepted again. i now have this car for 5 weeks and am told i was turned down again and to return the car. i later find out the the auto lot lied on my application and said i recieved a pension just to get me approved and that got me turned down a second time. i have a signed contract in my hand that says i am approved. what do i do with this car? i really want to keep it and seek legal aid.

Answers:

1) You have no right to the car if it hasn't been paid for. The dealership is clearly wrong in how they handled the loan, but that does not change the fact that the car has not been paid for. Solution: get a loan on your own by applying directly to a bank. A $3800 down payment will look very good.

2) Return the car, get your money back. Do not get a loan, loans are for poor people, choose not to be poor. Buy a car with the cash you have.

3) If the dealership put you down as having a pension when you didn't, they have committed fraud. Unfortunately if you signed it then you have too. Saying you didn't read what had been put down isn't an excuse, you sign to say you have checked the information provided. You only have two options. Get a loan from someone else or try and get your deposit back. The latter may be difficult, if they are prepared to lie to get a sale they aren't decent honest people, and may tell you the deposit is non-refundable, especially as you have driven the car around for 5 weeks. Unfortunately as you have applied for the loan with Cap1 twice, that has gone on your credit record and doesn't look good. Having 4 or more applications in a year for credit usually gets you a bad credit record, you are seen as desperate for credit. If you get a loan from someone else, it may be more expensive to repay. If you can afford it you may have to stomach the extra cost. If you can't, you may have to pay the loan over a longer term. One option if you have a house and mortgage, ask teh mortgage company for an extension, secured against the property. If you owe less than 75% of the value (LTV, LoanToValue) then you may have a good chance. If you do want to get a loan, see a broker. They can assess your financial position and apply for a loan that is likely to be successful. Not sure where you live, if it's the UK, phone Citizen's Advice. They can best tell you where you stand legally.

4) capital one isn't the only bank in the world. go to whatever bank you have a saving/checking account with and ask them if they'll accept the loan. a big down payment will help, especially if you do your banking with a credit union - those places are the nicest lenders around, but only if you have a relationship with them.

5) This is one of the many common scams that car dealerships use to hook people. They tell you are approved for a loan at a certain interest rate, have you sign the paperwork, then call back later telling you that you are not approved. Car dealerships finance through finance companies. This means, simply, that they run your credit score through a system with MANY potential financers and one picks you up. They know immediately before you leave the office whether or not you are approved. Please look at this website (and google others) for car dealership scams. http://www.jam727.com/WISECARBUYING/scams.htm Never, ever finance a car through the dealership. They never have the best rates and they will always try to sign you up for bogus extended warranty programs and bells and whistles that sound good on paper but are hard to actually take advantage of . Pull a copy of your own credit report and start making the rounds to local credit unions immediately. Don't let them pull the report themselves, see what type of financing they can offer based on your credit score that you provide. When you find the best rate, let the pull the credit and do the deal. If at all possible, return the car and get your money back. Buy a car from another car dealership. Don't give these people your money now if you can help it. You can always threaten to get an attorney and sue for their lying about a pension on your application. Don't believe them if they tell you that you can't. You CAN. Call an attorney and schedule a free consultation. The attorney at the very least will be able to draft for you an "intent to sue" letter which will normally run you about $30 but is entirely worth it if it can get you out of the mess you are in. Just keep a cool head and stay in control of the situation. And let a part of yourself be grateful. You've learned this lesson early. Some people keep making the same mistakes with car dealerships over and over again.

6) Get an online auto loan quote. http://www.autoadviceonline.com/Auto-Loans.html The questionairre will give you results based on your credit and financial situation. It will only take a few minutes.

7) You'll have to return the car but make sure you get the down payment back before you return it. If they give you a check, tell them you want cash. You could file a complaint with the FTC. Their toll free # is 1-877-382-4357 and the US Attorneys office in your state.

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