Reputable Car Dealership sold a car but 2 days later wants it back?

Something is odd here. Your son has no credit and he did not think it was odd he got approved for a $29,000 loan?

Is he a Junior, this can happen where credit files get mixed between a Junior and Senior.

Or did he say he did not know his SS number?

Or this could just have been an honest mistake and mixed credit file situation.

And sometimes dealers do front cars then try to get the buyer back and raise the price and interest rate.

Legal status - I am not sure how this would turn out. I am guessing the dealer will say the contract is void as there was material error and they have some clause in the contact regarding that issue.

Or maybe is valid contract and if the lender does not pay them, which is what happened here, that is an issue between the dealer and the lender. If the dealer fronted the car without a binding approval by the lender then that is the dealer's problem, or if the dealer as valid approval then then lender can't back out.

The question is do you want to get into a legal fight? And the dealer has attorney's and has had this happen before so they have an expertise.

First off read the contract word for word, second I would not drive the car if possible, let it sit until resolved.

If you want to back out then return the car and get his money back, also tell the dealer they need to pay say $500 for all this time wasted and stress. If they say, NO, then say OK, we need to think about our options here.

Keep in mind the dealer can ask you to do anything they like, and that is not illegal, may not be ethical, they can ask you to void a valid contract, stop on the way over and buy lunch for them, wear a sombrero and do a dance when you get to the dealer, and if you say OK, that is your option.

One option is to ask the dealer if he can make payments to them.

And if this seems confusing, or they threaten some legal action or insinuate you are breaking some criminal law, then you can hire an attorney, and let the attorney advise you and deal with this.

I have to ask how they got your son's Soc Sec number? They didn't pull it out of thin air. Based on that, you have to give it back (and you should get all of your money back). This may be a new twist on an old dealership scam. Spot delivery is where you take delivery "on the spot" before anything is approved. You took spot delivery of the vehicle before financing is finalized and in place (NEVER, EVER do that!!!!). Then they call back saying the financing fell through and you either have to sign for a higher interest rate or come up with a larger down payment. You are not obligated to do either regardless of what the dealership tells you. Cancel the deal and start over. They can't keep your $5300 and force you to do anything. NEVER EVER arrange financing through a dealership - ALWAYS arrange your own financing. If you can't get your own financing on reasonable terms, neither can the dealership. It's highly likely that the dealership knew full well you would not qualify for the loan. This isn't their first rodeo.

This is a VERY strange car buying experience you've written about. Somewhere in this convoluted strange deal is the fact that whoever applied for credit does not have an acceptable credit score, has an insufficient income or job history, and/or supplied false information (with the shady dealer's help). As a result, the dealer's finance company or bank could not approve the original loan terms.

So, you have two choices. Either agree to the new terms (higher interest rate?) or give the dealer HIS car back. Until the dealer gets paid by the bank, the car hasn't bee paid for, and it still belongs to HIM. There is no way you can keep the car unless the dealer can get paid for it.

There are some answers based upon emotion, and some based on fact/law.

Someone told you "tell them you have a signed contract, and thanks but no thanks". That doesn't work, sorry. Any vehicle finance contract is contingent upon the lender's final approval. Until the LENDER signs off on the deal, there is no deal. Apparently, the lender has a major problem with the way the contract was written, and won't fund it.

The lender will give one of three answers in their reply:

1) Approved as written (everyone is happy)

2) Approved with contingency (more money down, higher interest rate, etc.)

3) Denied (what they call a "turn-down")

If the lender denied it, the F&I manager then sees if another will take the deal as they usually never send it to just one lender. Or, they come back to you for their car back.

I'll leave the whole "straw purchase" part out, as it "sounds" like it was written up that way due to your son's lack of credit and what you put in your question.

So, where does that legally leave you? You either allow the F&I team at the dealer to work something out with the lender that meets your satisfaction, or you return the car and get your down payment back. Keep in mind, the car belongs to the DEALER until the lender gives final approval. Your signed contract doesn't give you the right to keep the vehicle if the lender says "no".

Trust me, the dealer WANTS to sell you a vehicle, and they want this to work.

Sounds like both parties are involved in a fraudulent contract. Your son signed it knowing that they used someone else's credit and not his. The dealer wrote it up knowing the credit was fraud.

Take the car back, get your down payment money refunded and WALK OUT. Next time deal with a reputable company.

The entire transaction sounds like a straw purchase.

Return the car, get every penny of your down payment back and buy a lower priced car for cash.

Don't give them the car or keys until you get every dime you put down back.

You must return the car, accept the newly offered deal, arrange your own financing, or pay cash in full. Whether the dealer is trying to commit fraud or simply incompetent/negligent matters little at this point.

Cancel the deal. How in GOD'S name did that stealer get your son's social security number in the first place?

what further