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  1. #1
    Join Date
    Jan 2006
    Location
    Kentucky
    Posts
    70

    Unhappy Can a Car Dealership Change the Interest Rate After a Deal is Signed

    I bought a new car 6 days ago, dealership was 'proud' to help me out and got me approved with Ford Credit at 0.9%. Yesterday, the business manager called to say HE had made a small 'mistake' and had put me in at the wrong tier...my rate is supposed to be 1.9%. He wants me to come in and sign a new contract. Can they do this? I think they need to swallow the $500 differential and make it up by selling an extra car this weekend. Is my signed original contract solid, or can they change this....what if I don't go sign a new contract?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Can dealership change rate after deal signed?

    Is this a new purchase contract, or just a new financing contract? Has the car title been transfered to you yet?

    If you completed the purchase but the financing fell through, with no contingency relating to the financing, you have to secure proper financing to keep the car (or pay cash). That is, the car would be yours and, absent your finding alternative financing, it will be repossessed.

    If the purchase is contingent on the financing going through, then the inability to offer financing as agreed should present you with the opportunity to avoid the contract. That is, you should be able to get out of the contract.

    There is a small possibility that you can contractually enforce the original interest rate. But car dealers are not new to the game, and use standard contracts which are as forgiving to their errors as the law permits.

    If you're not sure what the contract means, you may have to have it reviewed by a local lawyer for an explanation.

  3. #3
    Join Date
    Jan 2006
    Location
    Kentucky
    Posts
    70

    Default Re: Can dealership change rate after deal signed?

    It was a new purchase contract. There were no contingencies - at least none explained to me or identifed to my knowledge. While I was in the office, the bus mgr was on the phone with Fprd Credit and confirmed my payment amount. We later discussed changing the extended warranty to a nodeductible, but that would raise the payment and he suggested I not do that because he "had already confirmed the amount with Ford" and didn't want to chance anything changing.

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