What recourse might I have for a car I bought on Saturday (Pennsylvania) but that I discovered came with a higher than anticipated auto loan rate (10.24%) after I got the car home and read through the paperwork?
Here are some answers from our expert women.
Unfortunately there is no cooling off period, except perhaps in California. One way to halt the loan is to call the bank that the dealer placed the loan with and tell them that they failed to disclose all the terms and most likely the bank will rescind the contract. Sometimes the dealer will get involved and settle matters, but if all else fails call the bank! Did the dealer provide a menu with all terms disclosed prior to offering products and finalizing the contract?
The first thing you need to do is contact your states Attorney General's office to clarify if you have the ability to return the vehicle. You can also contact the Better Business Bureau to file a complaint. The best thing to do is contact your own bank or financial institution to see if you can arrange financing, pay off the note that you signed at the dealership and hopefully secure a lower interest rate.
It may be that your credit score was lower and consequently it did not qualify for the lower rate. That is something you can find out by getting your credit report from Free Credit Report.com. If it is lower than 720 you will most likely have to pay a higher rate, based on the banks requirements that approved the financing.
These are only a few of the things you should try.
Also go in and talk to the Dealer Principal, explain your issue and see if this person will do the "right thing". Only after you have your credit score in hand.
〉 Answered on Aug 12th, 2008 by Lori Johnson, Owner and Instructor at Ladies Start Your Engines