How do I break a deal on a car loan if it hasn't been delivered?

You're in quite a mess. On one hand, if the dealership got the contract funded they can claim the deal is done. They have your mom's signature on it. It now belongs to her.

But on the other hand, you never signed the contract and the loan was made out to both parties. So both parties have to sign it to make it legally yours.

Here's the deal breaker that works in your favor ... if they tell you the truck belongs to your mom because of her signiture on the contract, let them know that they can only legally do that if they write up a new contract with only her name on it. The contract they have now is not valid anymore since you won't sign it. And it's highly doubtful your mom would sign a new contract under just her name.

They have to unwind the deal. That's a royal pain in the butt. It takes many phone calls and a whole lot of paperwork to do it. They may try to force you into it by throwing guilt on you. Or threaten to hurt your credit or take legal action against you. Guess what? They can't do either and they know it.

Since you haven't signed yet, you can back out. And they can't hold your mom liable for it unless they write up a new contract with just her name on it and she signs it.

Regarding the down payment, ethically, they should return it to you since there is no deal. But since it was a down payment and not a deposit, they can legally keep it. All deposits must be returned in full if a deal falls through. But that's not the same for a down payment.

Did you write a check for it? See if it's cleared. If not, put a "stop payment" on it. If it has cleared, ask for it back in full. If they refuse, or hold part of it, you'll have to file against them in Small Claims Court. The odds should be in your favor.

Both of the above sales professionals are correct. You can back out of this deal if you haven't signed and haven't taken possession of the vehicle. I would not be surprised if the salespeople tried to press your mother outside your presence, possibly drawing up new paperwork for her to sign, so you need to educate her to the fact that this might occur, and that she is under no further legal obligation to sign anything. If they present her with paperwork, now or later, she should sign nothing. The same thing goes for you- if they should ask you to sign anything, have your attorney present to go over it. Good luck!

Ricart Auto

Hello, I sell cars for a living and I am the Internet sales manager at my dealership. If you have not signed then you do not have to take the vehicle. I know for a fact that if the car is still on their lot and you have not taken it home then you do not have to take it. they may try to tell you that is not the case so you will drive the car off of their lot. Once you leave the lot with the car you can not return it.

Your best hope is that the bank turns your application down, then ask for the money deposit back...or apply it toward a lesser car.

i had this happen to be awhile back. as far as no money(down payment) has been paid i think you should be fine.