Car loan denied after I signed loan paperwork?

Question

I can't figure this out at all.  I bought a used car and completed all the financing paperwork.  I added insurance, tags, and title to the car.  The finance company verified my information and called my boss to verify income.  I actually got set up with them to make payments online.  3 weeks later now I'm told the loan is denied.  My credit is average, my job puts me at middle class income, and I put down 20% as down payment.  Plus I gave in a trade in.  Now if I have to return car I will have no way to get to work because the dealer sold my trade in.  He said he can't figure it out because he got an actual approval number and this has not happened to him.  It's a used car and he does not want the car back he just wants it sold and I love the car.  Has this happened to anyone else?  Any ideas what I can do?

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1

bdancer222 · Answer

Go to your bank and get your own financing.  If you don't qualilfy there, then return the car.  The dealer will have to return your deposit and the trade in value of your vehicle, minus the milage charge for the car you return.

My guess is the dealer will ask you to sign new finance paperwork at a higher interest rate and/or more cash down required.  Kinda typical for this to happen when you drive the car off the lot before the financing is actually approved.

Hugo90 · Answer

Get a car loan elsewhere.  If you have a good relationship with a bank or other financial institution, they should treat you better.  Otherwise, the dealer needs the car they did not get paid for.

A Hunch · Answer

So go to your bank and get a car loan directly.

Car loan denied after I signed loan paperwork?

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