I figured i'd try posting this here too, I did bring it up in a legal forum first, but maybe you guys might be able to help me. I'll just copy and paste it. I am from Colorado btw.



I had recently purchased a used car that was 2003 vehicle (purchased on 6/24). I had a Capital One Blank Check that apparently was only good for new cars (thought it was good for used because it didn't really specify and said that '04 or older were 6.9% apr). When we showed it to the dealer finance department they turn around and give us an offer for 6.75%, so of course we took it.

Well today (6/30) I get a call from the finance department saying the loan could not be approved and that when they contacted Capital One about the offer they had and Capital One said it wasn't an offer they had given to me at all. So they go on saying the best loan they could offer was something around 11%

Going on to the paperwork I have from the sale.

A Retail Installment Sale Contract was drawn up, it shows the APR as 6.75%, Finance charge over the loan life and the terms of the loan etc. I'm willing to scan it and blur out the more private information so that the contract text can actually be read, but it is a sales contract and says within the contract that both parties must agree to any changes. A contract that already has out agreement and payment terms etc.

While on the other hand there's a contract that must be signed under Colorado Department of Revenue as a standard disclosure that in it states "Dealer has agreed to arrange financing for you and you agree to buy the Motor Vehicle if financing can be arranged at an interest rate that does not exceed 21%". This was not an issue to us as we were already offered the 6.75% and already signed the first contract.

Can they turn around and not guarantee the financing that is promised within the first contract? Also the car is sold and financed as co-signers as me and my dad. We had both signed the first contract, only my dad had signed the second contract (which would make it non legally binding to me to accept the terms in it?)

http://img.photobucket.com/albums/v3...ract1Front.jpg
http://img.photobucket.com/albums/v3...tract1Back.jpg
http://img.photobucket.com/albums/v3.../Contract2.jpg

The scans are labeled on photobucket. Names and signatures etc have been deleted.

I do not see anything saying "Subject to credit approval" at all.



Either way I hope I don't get stuck paying an extra $50/month for an overpriced interest rate =(.

 

The interest rate in the contract isn't guaranteed until the bank approves the loan. So, they can potentially get you with a higher APR. If you can back out at this point, that might be best for you. Turn the car in and walk away, get your financing in order (know the facts, make no assumptions this time), and buy a different car. If you're contractually stuck with this car, then take the 11% loan that they gave you, and try to refinance the car after the 1st month's payment to see if you can get a better rate. I did that once with our previous RX300. Dealer didn't accept Cap One blank check, so I took their loan at 9% interest, went right back to Cap One a month later and got 4.9% on the refinance (their new car rate at the time, for my troubles) Good luck....

 

Thanks for your help =). I actually called Cap One back up and they said my check was good for used cars at the rate originally proposed. So I got my 6.9% from them . So i've finally gotten my upgrade from a Maxima to a G35 . Would get a better rate if this was another year down the road, my credit history is too short.

 

Congrats. I too upgraded from a Maxima to a G35, about 2 years ago