(WSVN) - It may have happened to you. You drive home in your dream car after being told you got financing. A few days later, you are told to return to the dealer because do not have financing, and you need to either pay more or return the car. Is that legal? It’s why one woman called Help Me Howard with Patrick Fraser.
When Kelly’s teenage son got a job, he started saving money to buy what most kids want: their own car.
Kelly Scott: “[He told me], ‘Let me use your credit, and I’m responsible, and I’ll give you the money. I’m like, ‘OK.'”
Prinston found a 2007 BMW that he liked at a used car lot. Kelly went to the dealership to qualify for the loan.
Kelly Scott: “That’s when they came back. ‘You are approved.’ I said, ‘OK!'”
Prinston put down $1,500 with the promise to put down another $500 after he got his next paycheck.
They drove the car home, and a few days later, Kelly’s phone rang.
Kelly Scott: “My son’s calling me, tells me the car is towed. [I said], ‘Like, towed from where?’ I’m, like, freaking out. I was thinking all kind of scenarios but that the car was being repossessed.”
Kelly called the bank that she thought was financing the car and was told, “Yes, the car had been repossessed.”
Kelly Scott: “For what reason? ‘You did not meet our criteria of income. It does not give us proof that you made that money legit.'”
At her human resources job, Kelly’s boss often pays her in cash. He even wrote a letter for her credit application letting the bank know that, but because of the cash, the bank refused to finance the car.
Kelly Scott: “So I called the dealership. I’m like, ‘All right. Listen, the bank told me this.'”
Kelly then asked the used car dealer for her son’s deposit back. When they refused to return it, she went to the dealership. That didn’t turn out well.
Kelly Scott: “They told me that I was trespassing. They had the police escort me and told me that I’m not allowed on their premises.”
Her son doesn’t have the car, she didn’t get the financing, and they’re out the $1,500 deposit Prinston put down.
Kelly Scott: “He saved his money, and he relied on me to make something come through.”
So many people drive away from a dealership after being told they are financed only to get a call a week later, “Come back. You are not financed.” Howard, why is that?
Howard Finkelstein: “This is what’s called ‘spot delivery.’ You take the car after preliminary financing is approved. Then, if the dealer cannot get a bank to loan the money, you either have to put more down, pay more each month or return the car. To avoid it, do not take that car until you see in writing you have final approval, and that normally takes a few days.”
The owner of the used car dealership told us they tried to get financing for Kelly from several banks. When they could not, they called her and asked her to return the car. The dealer said Kelly told them she wouldn’t return it, so they repossessed it.
Kelly says they never called her at all. As for returning the deposit, the used car dealer wrote, “We have a signed document from the client stating that the dealership has the right to retain any deposits from the client.”
Kelly doesn’t have that document, and when we asked the dealer for a copy, he didn’t respond.
Kelly Scott: “And we went to another dealership.”
Prinston had a used car repossessed, but Kelly got financing for a brand-new BMW for him.
Kelly Scott: “They heard my story. They felt sorry for me. They were trying to find the best solution how to approve me for the financing, and I came out as a winner.”
Prinston got a new car. They both got a lesson in buying a car.
Kelly Scott: “This is a lesson learned for him, for everyone not to jump on the first deal because it looks so good.”
Now, to avoid getting a call a week or two later that you don’t have financing, go in with your own financing from your bank or credit union. A bonus: They can tell you how much you can borrow so you know what price range to look for in a vehicle. Makes buying a car much less stressful.
Got a problem you wish someone would repossess? Wanna see it driven away? Deliver it to us. You qualify for our help just by asking.
CONTACT HELP ME HOWARD:
Email: helpmehoward@wsvn.com
Reporter: Patrick Fraser at pfraser@wsvn.com
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On Twitter: @helpmehoward7
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