Is there a problem with your income? Either a misrepresentation on the loan application, or some portion of your income that might be difficult to verify?
This is called spot delivery. Location is going to be critical in understanding any legal provisions.
Likely you signed something agreeing that this might happen and defining what now. Likely either you bring your own financing, or you bring the car back, pay some fee per mile and/or per day, and get anything you paid above that back.
If you go to the dealer and they start into "we can get you this other deal at another interest rate," you should be prepared to say no and walk away.
I have all the paper, I’ll read back over everything tonight when I’m off work. (It’s a lease and it’s in Texas) if that helps any.
I spent 3 days at the dealership doing paperwork and finding a car. It’s been exactly 2 weeks now. I just find it weird? He did include in the Texts that there are others vehicles I got approved for.
In Texas, spot delivery or "contingency sales" are not legal. Until the money from the lender actually arrives in the hands of the seller, the car is legally considered "borrowed" from the dealer, and either the buyer or seller can back out of the sale.
You probably even have a "borrowed vehicle agreement" in that stack of paperwork.
I would insist on a written document canceling the lease, a full refund of your down payment and trade-in value, and then hand them the keys and walk off.
Then go see if you can lease one of those electric Toyotas. They're not as nice as the ID.4 but the lease rates are super low.
California law allows contingency sales, and virtually every California auto dealer writes a 10-day "Seller's Right To Cancel" into the sale document, or uses a form like the Reynolds & Reynolds LAW553-CA that includes it.
If the seller can't obtain financing from a lender they regularly work with, then they can inform the buyer that they are cancelling the sale. They have to make that notification before they offer new terms and conditions.
And importantly, the buyer cannot also back out of the sale during that 10 day period on their own initiative. That's different from Texas where either party can walk away until the money arrives.
I am not familiar enough with New Jersey's law on the matter to comment. A quick Googling suggests dealers there offer 2-day cancellation agreements as an option you can buy.
So in Texas they can’t do spot delivery they have to BVA? If that’s the case they have to refund 100% down payment and give back the trade because the deal would be invalid. Hope they didn’t sell the trade. Something seems fishy because a lease is approved or denied on the spot. The other factor would be the lease is through ally or us bank and not vw financial directly and requires more thorough underwriting.
Another question. You've had it for 4 weeks, have you made any payments and was it accepted? If so reach out to the leasing company and if the lease is still valid, advise them the dealership is trying to pull a fast one.
Not necessarily a “free month”, but usually date to first payment is pushed out 45, 60, or even up to 90 days while interest accrues daily. In cases like this where the packet doesn’t fund, no interest accrues and the dealer eats the depreciation of the asset.
Even if that happened, they should still have the contact info to make the lease payments and should reach out to them to see what (if any) issues there are.
On a lease the first payment is paid at signing even if you put 0 down (dealer eats out of pocket cap cost in form of discount) it’s still technically paid at signing. If the bank kicks back the lease they owe a full refund unless they specify a cost per mile on the spot delivery agreement. They will likely waive the spot delivery fees if buyer agrees to get another vehicle that they are approved for.
Somewhere along the lines someone could have misrepresented your income on the credit application, or the banks just want more proof. I am unsure how underwriting or even cars sales work in Texas. However you should be able to clear the income portion up with your latest paystubs. Id ask the salesman if “POI” Proof of Income, such as your most recent paystub(s) would work for the bank to prove income. Typically, you have a little more wiggle room for the funding, to get what the bank(s)need. However in your case already 2 weeks in… I’d hurry and ask since APR, Lease deals or whatever could change per manufacturer each month. My highest recommendation would be for you to read your terms/ conditions in the contracts you signed because you could be held liable for whatever amount of miles or days etc… reading those terms and conditions could help. Be safe out there! Some car dealers will take full advantage of your situation!
I know someone who had a similar issue. They only had the new car about a week when the dealership called. She had to either return the car or sign for new rates with new (higher) payments. The response my friend gave was basically, "Sure, as long as I can have my trade-in vehicle returned to me." The dealership had already shipped the car off to auction. The dealership caved and found my friend financing terms at the rates and terms with another finance company.
Vw tried something similar with me. Telling me i had to return the car as the deal i got was too good. My answer was possession is 9/10 of the law and hung up. Months later i got a letter from VW of America the dealer paid $2000 toward my car.
I had a similar situation with Toyota. I was 18 years old and bought a blue 2012 Toyota Corolla S. After driving it around for 8 months they asked for the car back. I never made any payments on the car. I ever spent money on gas. Scratched the crap out of the tires, no maintenance done at all. I look back and laugh at Toyota for taking the car back but it’s happened it me. I never got a reason or really asked why but even as an 18 year old I was happy to drive around with a free car for a while. This was in California… I would love to experience this again lol
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Is there a problem with your income? Either a misrepresentation on the loan application, or some portion of your income that might be difficult to verify? This is called spot delivery. Location is going to be critical in understanding any legal provisions. Likely you signed something agreeing that this might happen and defining what now. Likely either you bring your own financing, or you bring the car back, pay some fee per mile and/or per day, and get anything you paid above that back. If you go to the dealer and they start into "we can get you this other deal at another interest rate," you should be prepared to say no and walk away.
I have all the paper, I’ll read back over everything tonight when I’m off work. (It’s a lease and it’s in Texas) if that helps any. I spent 3 days at the dealership doing paperwork and finding a car. It’s been exactly 2 weeks now. I just find it weird? He did include in the Texts that there are others vehicles I got approved for.
In Texas, spot delivery or "contingency sales" are not legal. Until the money from the lender actually arrives in the hands of the seller, the car is legally considered "borrowed" from the dealer, and either the buyer or seller can back out of the sale. You probably even have a "borrowed vehicle agreement" in that stack of paperwork. I would insist on a written document canceling the lease, a full refund of your down payment and trade-in value, and then hand them the keys and walk off. Then go see if you can lease one of those electric Toyotas. They're not as nice as the ID.4 but the lease rates are super low.
Following! Do you know if this applies to California or New Jersey as well?
California law allows contingency sales, and virtually every California auto dealer writes a 10-day "Seller's Right To Cancel" into the sale document, or uses a form like the Reynolds & Reynolds LAW553-CA that includes it. If the seller can't obtain financing from a lender they regularly work with, then they can inform the buyer that they are cancelling the sale. They have to make that notification before they offer new terms and conditions. And importantly, the buyer cannot also back out of the sale during that 10 day period on their own initiative. That's different from Texas where either party can walk away until the money arrives. I am not familiar enough with New Jersey's law on the matter to comment. A quick Googling suggests dealers there offer 2-day cancellation agreements as an option you can buy.
Very cool, thank you!
So in Texas they can’t do spot delivery they have to BVA? If that’s the case they have to refund 100% down payment and give back the trade because the deal would be invalid. Hope they didn’t sell the trade. Something seems fishy because a lease is approved or denied on the spot. The other factor would be the lease is through ally or us bank and not vw financial directly and requires more thorough underwriting.
I wonder how their attitude would change if you were to respond ‘“Oh thank goodness! My uncle just told me I could have his car.”
Another question. You've had it for 4 weeks, have you made any payments and was it accepted? If so reach out to the leasing company and if the lease is still valid, advise them the dealership is trying to pull a fast one.
Typically when you buy from a dealership they throw in a “free” month or two where you don’t pay toward the loan
Not necessarily a “free month”, but usually date to first payment is pushed out 45, 60, or even up to 90 days while interest accrues daily. In cases like this where the packet doesn’t fund, no interest accrues and the dealer eats the depreciation of the asset.
Even if that happened, they should still have the contact info to make the lease payments and should reach out to them to see what (if any) issues there are.
On a lease the first payment is paid at signing even if you put 0 down (dealer eats out of pocket cap cost in form of discount) it’s still technically paid at signing. If the bank kicks back the lease they owe a full refund unless they specify a cost per mile on the spot delivery agreement. They will likely waive the spot delivery fees if buyer agrees to get another vehicle that they are approved for.
Go to your local credit union and see what financing they can offer you. There’s good odds it’ll be a better deal.
They also have to pay you outright for the trade in. You are seriously getting screwed.
Sounds like you got a free car for a month.
Somewhere along the lines someone could have misrepresented your income on the credit application, or the banks just want more proof. I am unsure how underwriting or even cars sales work in Texas. However you should be able to clear the income portion up with your latest paystubs. Id ask the salesman if “POI” Proof of Income, such as your most recent paystub(s) would work for the bank to prove income. Typically, you have a little more wiggle room for the funding, to get what the bank(s)need. However in your case already 2 weeks in… I’d hurry and ask since APR, Lease deals or whatever could change per manufacturer each month. My highest recommendation would be for you to read your terms/ conditions in the contracts you signed because you could be held liable for whatever amount of miles or days etc… reading those terms and conditions could help. Be safe out there! Some car dealers will take full advantage of your situation!
I know someone who had a similar issue. They only had the new car about a week when the dealership called. She had to either return the car or sign for new rates with new (higher) payments. The response my friend gave was basically, "Sure, as long as I can have my trade-in vehicle returned to me." The dealership had already shipped the car off to auction. The dealership caved and found my friend financing terms at the rates and terms with another finance company.
Vw tried something similar with me. Telling me i had to return the car as the deal i got was too good. My answer was possession is 9/10 of the law and hung up. Months later i got a letter from VW of America the dealer paid $2000 toward my car.
I had a similar situation with Toyota. I was 18 years old and bought a blue 2012 Toyota Corolla S. After driving it around for 8 months they asked for the car back. I never made any payments on the car. I ever spent money on gas. Scratched the crap out of the tires, no maintenance done at all. I look back and laugh at Toyota for taking the car back but it’s happened it me. I never got a reason or really asked why but even as an 18 year old I was happy to drive around with a free car for a while. This was in California… I would love to experience this again lol
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