My question involves a consumer law issue in the State of NY:
I signed a retail installment contract for the purchase of a used Fiat car on 9/21/13 at 10pm.
The terms typed in the RISC are: $30,000 @ 1.89% over 60 months. I drove off with the car that evening.
Dealer calls me a few days later saying Chase approved only $25,800. They want me to come in and re-sign docs with another lender because they were able to get approval for the whole amount somewhere else. However, at this point, i realized i over-payed for the car and am no longer interested in completing this transaction.
I mentioned this to dealer in our phone conversation earlier but dealer claims they have right to cash my RISC with another bank even-though i refuse to physically come in and sign new loan docs. They are not interested in accepting the car back because they paid off another customers loan of $24,000 so they can turn around and resell it to me for $30,000. However, there actions speak differently because i receive calls daily from the manager who is trying to strike a deal with me at $25,000 and complete the sale.
After requesting and reviewing the decision letter dealer obtained from Chase i noticed the information mentioned in the application states the car as "New" and with only 10 miles when in fact it is used and has 7,000 miles. I took another step and called Chase Auto Finance directly to find out if my RISC has been processed but they were not able to find my loan in there database which leads me to believe that dealer did not fax over actual RISC and only obtained a conditional approval from the bank. Currently, dealer has title to the car but i am still driving it.
My questions are as follows:
1) If i choose to give the car back as opposed to renegotiate price and dealer refuses to accept car, do they have the option to cash my contract with another lender using my Chase RISC?
2) Do the discrepancies in the loan application dealer submitted- "NEW" & "10 Miles"- give me the right to cancel my RISC?
3) Can dealer force me to use another bank even-though i do not want to?
Basically, i would like to know if my RISC is no longer valid and whether or not i can legally back out of this deal.

