30 days after buying a car with all legal documents in hand dealership says bank changed their mind

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May 19, 2019
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On April 12,2019,I drove off the dealership lot with my car and all signed paperwork in hand but 30days later received a call the bank changed the price of the car.When I spoke with the bank credit department I was told the bank made a counter offer the dealership refused.Then I received a call from the dealership corporate office saying there was a mix up with the car being a CPO and not new.I offered to return the car with all my monies to be returned to me but I keep getting told is my car and no one has made any attempts to get the car back.The car is a Corporate Fleet and never titled.I live in NC do I have any recourse?
 
Sep 27, 2017
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#2
So, is someone trying to repo the car or did the bank just jack up the price of the note?

If the car was never titled, it should be considered as new. Id the bank you're dealing with a nationwide one? If so, search for it in the 'Company Contacts' section of this site. Also there will be a link on the best methods and strategies for contacting a corporation.

Alternately, if the bank is absolutely refusing to budge, can you apply for financing elsewhere or ask the dealership's FnI person to handle it for you?
 
Sep 12, 2018
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Generally, your contract will have something called a bailment clause that says, effectively, if the dealer can’t secure financing, the contract is void. This clause also usually specifies the amount of time they have to get the financing. If they can’t, the contract also sometimes covers whether you have to pay for the use of the car while it was in your possession. If you had a trade in and they already sold it, that can complicate things. State law also sometimes limits what the dealer can do in these situations. The point of all of this is, your probably need an attorney, because the advice you can get here is not legal advice, and there are so many moving parts here that you need an expert. I would suggest that you don’t agree to anything or talk to anyone else until you get a lawyer, and make all the payments required by your contract on time. I’d also suggest that you start communicating with the bank and dealer via email only, so everything is in writing.
 
Likes: justlisa
Sep 12, 2018
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One more thing: if you had a trade in and you still owed money that the dealership promised to pay off, check to make sure that they actually did. Since they didn’t get financing, they might not have, and if you’re still supposed to be making payments and don’t know it, that would obviously be bad for your credit.
 
May 1, 2018
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I didn't dig into this too far but a cursury search on the NC Attorney General's website reveals the following:

Also, watch out for scams. One common scam is called the Yo-Yo. A few days or weeks after the car is purchased, the unscrupulous car dealer calls the buyer back to the lot. He claims that the loan financing has fallen through, and the buyer will need to pay more cash or get a loan with a higher interest rate. Some dealers may also try to keep the buyer’s down payment. However, the buyer has a legal right to request that the original deal be “unwound” if the financing falls through, and that all of their money be refunded.
 
Sep 27, 2017
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I'm glad NC has a clause about the 'YoYo'.

I've purchased five new cars in my life (in Louisiana). Of those, two I was informed the financing fell through -- one, two days after I drove off, the other, three WEEKS. Fortunately for both, I was able to work out other financing. But yes, it sucks.
 
Likes: Warren
May 1, 2018
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I'm glad NC has a clause about the 'YoYo'.

I've purchased five new cars in my life (in Louisiana). Of those, two I was informed the financing fell through -- one, two days after I drove off, the other, three WEEKS. Fortunately for both, I was able to work out other financing. But yes, it sucks.
The last few times I've purchased a car, I've been clear that I won't agree to a spot delivery. A couple times I've had to wait a couple days before being able to take the car home, but it's worth it for me since it avoids the possibility of a yo-yo situation.
 

Neil Maley

Moderator
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Advocate
Dec 27, 2014
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www.promalvacations.com
#8
You may need to report the dealer to the Consumer Affairs Department. What has the dealership said when you contacted them? If it were me, I'd contact the dealer and tell them you are aware of the YoYo scam and that you will contact Consumer Affairs if this is what is happening.
 
Aug 9, 2017
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I recently worked with an elderly gentlemen here in PA about the purchase of a car from a well known car rental agency. One of the things I learned is the only way you can have a never titled Corporate Fleet car is if the dealer retained ownership from the manufacturer. The car could have been a demo or something used by the service department and when it reached the end of its useful life as a demo, it can then be certified as CPO and sold. Under PA law, if it has more than 500 miles, it must be titled as "used." Keep in mind that "CPO" really in most states, has no legal definition but simply assures the buyer of an inspection process and a warranty. Large "true" corporations may purchase thousands of vehicles for their workforce, but these vehicles are titled and the owner is the Corporation. As an aside, these vehicles can often be later purchased by the employee, but the paperwork, again here in PA, clearly states the seller as the Corporation and the buyer as the employee. I've personally been in a position to buy such a car and knowing its condition and having an attractive price, I did make the purchase. In that regard, and as an aside, some equipment normally with the vehicle at retail, may not be installed on such a "fleet" vehicle. For instance, GM's On-Star was not on the vehicle I purchased, nor could it be enabled.

To avoid some form of scam going on, the most important thing to do is to talk to your state's DMV and attempt to get a title report. Sometimes that can be as simple as an online process, knowing the VIN. You might also try to do an online Carfax search and get the title history information over the Internet. These are about $30 for an individual. Carfax reports aren't perfect. If for instance it was a dealer demo and they serviced the vehicle, the service history may not be accurate.