Repossession After a Car Loan Fell Through

My question involves a consumer law issue in the State of: CALIFORNIA

On 7-24-2015 (2 months ago) My Son purchased a Car. I put up a portion of $750. That day they delivered a pre-contract of sorts? Injecting the name of a Financing with a Specific Bank. He also received an approval from another Bank, dated 7-24-15. On 8-24-15 he received a Notice from that Bank stating their offer had expired? The ONLY Bank that telephoned?

On 08-15-2015 the Bank on the contract declined his loan (I have no idea why it took them so long). He could have accepted (if he had known) from the 1st Bank that wanted him. 1st payment was do to paid on 9-7-15, no one made a effort in responding back to him. All he or I heard were excuses and accusations from them NOT being able to get in touch with him. He received NOTHING at all in communications. On the day of signing, he received all the documentations of securing a Car, as though it was purchased. Later He received in the mail Warranty cards, repair notices. All the trimmings of him being the Owner.

3 days ago the car was taken because of lack of financing? A man called me that morning but said little, then the car was taken at his job. Prior to this, NO communications from them. They have made no offer of returning Funds or the trade in car. No One is returning calls. Is this legal (am sure its not) But where does one start? What does he do next?

There was also a mention that the Dealer was refusing to fork over a portion of Their "Profits" in perfecting the deal. He did receive several denial letters thereafter, from outside sources. Never heard from the Dealer. So why didn't they go with the very FIRST Finance company?

If your son wants to know why a lender denied his loan, odds are he received a letter explaining the rejection -- but if he did not, he can ask the lender.

If your son wants to know why the dealer went with one finance company over another, he should ask the dealer.

As your son knew his loan had fallen through as of mid-August, and apparently did nothing to either pay for the car or to arrange alternative financing, it's not a surprise that some seven or eight weeks later the car was repossessed. The dealership is going to expect to be paid for the car.

I have no idea what you are talking about in relation to "the Dealer... refusing to fork over a portion of Their 'Profits'".

Your son can refer to his purchase contract to see what rights and remedies it spells out in the event that financing falls through. It would be helpful to us if he posts that information here.

Your "odds" are correct. He knows The Why the Lender denied the loan.
But that's only 1/4 the problem. In fact the Dealer sent him through several Credit companies. Not the Issue.
I never said that.....wasn't attempting to mislead you.
The Rejection Letters clearly state "what" they are suppose to state as to rejection.
Yes, 3 weeks later he did received a letter from the Bank that was "injected" onto the ..."Gap" Ins. & the Repair Warranty contract? ONLY!
(Isn't that suspicious).
Here A "Good Faith" Customer is driving around in a Car, that they think is Theirs and you have NO viable Contract? That's FRAUD!
He did ask the Dealer Why They chose in NOT accepting the 1st offer. It was because the Finance Co.
wanted to (eat) into a portion of The Dealers Profits. (That's what I meant by "the Dealer...refusing to fork over a portion of Their 'Profits'".

Place the Blame back onto my Son..... "Poor Little Innocent Dealership".
He knew of the ONE DEAL that had fallen through. The Dealer kept promising him financing. He has the letters in proving their efforts and in their stalling.
You sound Pro-dealer a bit? But I like hearing the Devil's Advocate:cool: You stated this:
"As your son knew his loan had fallen through as of mid-August, and apparently did nothing to either
pay for the car or to arrange alternative financing, it's not a surprise that some seven or eight weeks
later the car was repossessed. The dealership is going to expect to be paid for the car." ...
Yes, You, ME & The Dealer would want to be paid. That's right! 2 Months and 2 days to be exact.

Who keeps a Car for 62 days without a Contract? (unless they were told that they had one)?
Who allows someone in keeping a Car for 2 Months and 2 days without being paid!
Who in Their Right Mind does something like this without putting any of this in writing and throws Insult to injury by still furthering NOT notifying them of what you call an Alleged Repossession....NO NOTICE! Nothing.
And you make it sound like they received NOTHING....They received a Trade-In and $750 cash?

How is this A Repossession anyway.
There is NO CLAUSE to refer to.
There is NO Purchase Contract. He was Bamboozled.

My Son would be happy to refer to "A Contract" that's if he was given the usual contract.
He was (only) given a PRE-CONTRACT DISCLOSURE - (Retail Installment Sales Contract) ... A One Page Document!
He was also given a Contract Cancellation Agreement, telling him how much he could pay them to get OUT of buying the Car?
He was given a "GAP" contract for Insurance, Mechanical Repair Notice. All kinds of Warranty as in protecting them.

The One Page Contract, [IMG]928015.jpg[/IMG]

- - - Updated - - -

If you imagine that telling a car buyer, "If you want to keep a car, you have to pay for it", makes the speaker "pro-dealer", I'm afraid you are going to learn that pretty much every person who has a brain in his head is "pro-dealer". That's the way it works.

There is no reason why a dealership has to favor a lender who wants to charge a commission for issuing the loan, as opposed to one that does not -- although it's normally the lender paying a commission to the dealer, not the other way around. Rejecting a lender that will only issue a loan if it gets a kickback would seem to be a no-brainer -- you would kick the lender to the curb.

Once the financing fell through, it was up to your son to either (a) find a way to finance the car, (b) pay cash, or (c) return the car if that was an option under the contract. He chose to do nothing and, thus, it's not even slightly surprising that the car was repossessed.

You have chosen not to share with us the provisions of the contract relating to the parties' respective rights if financing falls through, but it's safe to say, the contract won't provide that "the buyer gets a free car".

If your son wants the car he can speak with the dealer about how he might pay for the car in order to recover it from them. If not, he can deal with any credit consequences flowing from the repossession.

Maybe it's your bed side manner. Like telling folks that they don't have "brains inside their heads"?

When did I say anything about NOT paying?
You assume that everyone that comes on here doesn't want to pay?
A Brain in Their Head? Where did that come from? .....Now what are you talking about.
I am a business person. I want to be paid. But I don't assume that everyone is out in getting me.
When I know that I have to be diligent in with whom I am dealing with?

Not everyone is "Pro-dealer" especially with a USED CAR SALESMAN? It's not the way it works.
A. When his financing fell through he was told that there were feelers sent out for him.
B. Pay Cash....? He's not Trump.
C. He was in need of a Car and they gave him False hopes. No contract, but there was is a
"Return Fee Agreement" go figure a Return Fee Agreement, but NO Contract????
D. There was NEVER A CONTRACT.
E. The Car was NOT REPO'ed. according to the GM. She's looking into it....She claims that they bend over backwards in keeping folks in Cars?

THERE WAS NEVER A CONTRACT.....Hard to believe? I can't share with you the Pre-Contract. Your site does not have a means in me uploading it. I tried in inserting, but that doesn't work either....If I am wrong, let me know how.

After spending this Full Business day on this subject. I have come to the resolution that My Son has been damaged.
The FREE Car language is written in between the lines. It's called a "Breach of Contract".

Free Cars come when a customer isn't given all the documents that were signed by him.
Free Cars come when there is a KNOWN entity willing to finance the car since day One and the Dealer hampered that.
Free Cars come when there is NO communication offered between the 2 parties ever!
Free Cars come when the Customer is held up at his Job and under Duress 3 Thugs show up and steals his Car.
In California, there is a little something about "Implied Warranty's". It's not just for the breakage of an item.
Did I mention this 5 letter Word called "FRAUD"! .. aka: FREE Car.

First and foremost, he wants the Car returned. They never gave him an opportunity to make payments!!
If they had not interfered with the First Finance Company, they would have been paid 62 days ago!!
He is going to talk first to see if he can pay them. The GM seem to be leaning in that direction. But she hasn't called me back yet?

P.S.
It's a Crime in diverting a Customer to One Lender over another!

Since you seem to have all the answers, why are you here again?

Blithering idiots frequently believe that they know everything, but yours remains a fair question.

People who aren't blithering idiots know that the car buyer has to go into the dealership and sign the loan application. People who aren't blithering idiots know that a car buyer isn't going to sign for two loans, paying the dealership twice for the car.

People who aren't blithering idiots understand that if you don't pay for your car, it will be repossessed -- and that will be your fault.

@ BooRennie ..... I am assuming that you are directing this remark towards Me?
Why do you have the need in knowing? Why did you feel in essence in making this remark?

Blithering idiots also have a hard time recognizing when questions are rhetorical.

@ Mr. Knowitall. How's that Bedside Manner working for Ya' ... (as I speak in my Sarah Palin voice)

I have the strong urge in slinging an Insult back atcha.
But I'll be the Grown-up here.
Your remarks aren't helpful and the record shows that you have spent countless hours responding to over
81,000 post? (What a waste of time)

You've made assumptions by pulling (random) thoughts out of Thin Air. I've given to you FACTS.
You've chosen to twist/spin another ball of yarn, that seems to favor your political thinking.
(Is your life that miserable?)

There are Constitutional Laws. There are State Laws, then Local Laws.
For You to reach down into your little thoughts and make an OUTRAGEOUS remark as this....
"People who aren't blithering idiots understand that if you don't pay for your car,
it will be repossessed -- and that will be your fault."

Suggested reading to You .... Rip-Off.com, Scam.com I might even suggest calling the FTC.
(those entities exists for a reason)

How did you actually set your fingers up in typing to someone else the verbiage "Blithering Idiot"?
Amazing.

I came on here, with the INTENT of finding someone else that may have come across similar situation as to Ours. (doing research).
I have NEVER seen a Car Dealer simply "Helter Skelter" hand over Car keys without financing??? News to Me. smh
Then later Cry "Foul" when it doesn't work out his Way??? (never mind) am speaking to the "Free Greed" crowd.

But You turn them all into the same Bag of Greed & FREE STUFF.
The Slimy Used Car Salesman is ALWAYS right. Because he is the "Job Creator". He's the One that MAY be
harmed. Never mind that he is making Money off the Backs of "Joe Nobody". Poor Slimy Used Car Dealer!
He's the One that Invented the Scam, so he gets props! That is if He actually runs in the proper circles that is.
Because, we all know....."It's not what you know. It's WHO you know".
Ciao~