My question involves a consumer law issue in the State of: Colorado
We purchased a used car from a Toyota dealership in town and they said they could get us a 2.9% loan. They told us we were pre-approved, good credit score, etc. We did all the paperwork stuff, got sold all the extra warranties (because it was a Toyota-certified used car, so we were able to purchase and tack it on to the loan), and so on. We were told that night that the loan would be sent to underwriting in the morning and that they would let us know if there were any problems. I assumed that underwriting was a several hour process perhaps, from this conversation.
We have had the car for 29 days, and today we get a letter in the mail saying that our financing was denied for the following reasons: too low of a down payment ($1,000) and too many recent credit requests (the only recent credit requests were a new credit card to purchase a computer 3 months ago, and a pre-approved auto loan from my credit union - higher % so we didn't use it, plus, it wasn't enough to buy the car we ended up choosing).
So, that's crappy enough - and we would probably just opt to cancel the whole deal and take the car back...EXCEPT, that when we are looking at the contract tonight, we see this:
"You and the dealer have agreed that the vehicle will be delivered to you prior to the purchase price being paid in full. If financing cannot be arranged at the terms stated in the contract, and the contract is cancelled, you agree to pay the dealer $50 per day and 50 cents per mile for your use of the vehicle from the date of delivery until the vehicle is returned to the dealer. If the contract is cancelled, it may require you to immediately return the vehicle to the dealer and to pay the cost of repair for any damage occurring to the vehicle while it is in your possession along with the agreed upon daily and mileage charges. The contract may also give the dealer the right to take the vehicle from you 24 hours after cancellation and demand for the vehicle's return. You may also be required by the contract to pay any costs the dealer may have to pay in regaining possession of the vehicle. If you owe any money from daily and mileage charges, damage repair costs or repossession costs to the dealer when the vehicle is returned, the dealer may keep your deposit(s) up to the amount owed. Otherwise the deposit must be returned unless you have agreed that it is non-refundable."
So yes, I signed the above - but totally believing that we would know by the next day if we were financed. Upon not hearing anything, we assumed all was fine. I even talked to the salesman the next morning and asked him if all was fine - he said they would let us know if something was wrong - that it was too early in the morning still to know about the financing. This implied to me that the financing/underwriting decision would happen that day.
What do we do now? The letter was dated Jun 2, but we didn't get it until today (Jun 9) which means that adds a whole additional week of charges. We haven't heard from the dealer at all - just this letter from Toyota Financing. Obviously, I'm going to call tomorrow but am totally freaking out about the possibility of having to pay about $2,150 for the privilege of driving the car for one month (!!!!!!!!)
Is this legal? Is there anything I can do? I was pre-approved for a loan from my credit union in one day. It takes Toyota underwriting 3 weeks to figure out they don't want to finance me?
So frustrated and scared.
Thanks for any help/advice.