I bought a NEW car on AUGUST 28th 2014. The contract was written for 2.9 interest rate for 84 months. I received a call yesterday 10SEPT2014 and got a voicemail to call them back. So I did, got in touch with the operator and she sent me to finance dept. only to ring and get voicemail. I called back again promptly and got the operator again and said “I got the voicemail can you get me to a representative” she stated “Ill take a message and have them return your call”. They did not call me back again until the next day 11SEPT2014. I got in touch with one of the guys in finance and he said, “we need you to come into the dealership, (MOSSY NISSAN of National City, CA) we were unable to approve you for the 2.9 interest rate that you signed on the contract.” So, I went in and spoke with the manager (RAY) and he said our finance dept will not approve you for the rate we promised you on your contract. We need you to call Navy Federal (my bank) and get approved for the same loan in order for us to finance your loan. (He was not sure if he would be able to get me approved for the 2.9 interest rate on the contract or the 12.6 interest rate they had approval for.) I said ok fine. I called Navy Federal and got approved for a 11.49 interest which is still crappy but still better than the 12.6 they offered me AFTER they said they can’t approve me for the 2.9 interest rate. I said them are you not liable for holding your end of the contract, this seems extremely fishy and unfair? He said we have the right to CANCEL the contract if they are unable to get one of their financial institutions to accept it. SO here is EXACTLY what the CONTRACT states WORD FOR WORD.
SELLERS RIGHT TO CANCEL
a. Seller agrees to deliver the vehicle to you on the date of this contract is signed by the Seller and you. You understand that it may take a few days for the Seller to verify your credit and assign the contract. You agree that if the Seller is unable to assign the contract to any one of the financial institutions with whom seller regularly does business under and assignment acceptable to seller, Seller may cancel the contract.
b. Seller shall give you written notice (or any other manner in which actual notice is given to you) within 10 days of the date of this contract is signed if Seller Elects to cancel. Upon receipt of such notice you must immediately return the vehicle to Seller in the same condition as when sold, reasonable wear and tear excepted. Seller must give back to you all consideration received by Seller, including any trade-in vehicle.
c. If you do not immediately return the vehicle, you shall be liable for all expenses incurred by Seller in taking the vehicle from you, including reasonable attorney’s fees.
d. While the vehicle is in your possession, all terms of the contract, including those relating to use of the vehicle and insurance for the vehicle, shall be in full force and you shall assume all risk of loss or damage to the vehicle. You must pay all reasonable costs for repair of any damage to the vehicle until the vehicle is returned to seller.
Now my questions and concerns are as such:
1.) I like the car very much and have done modifications to it such as putting a hole in the bumper for BACKUP SENSORS and BACKUP CAMERA.
2.) Despite the seller stating they are able to cancel the contract, it says in section (b) that they must “give written notice (or any other manner in which actual notice is given to me within 10 days of the date this contract is signed” I signed the contract on the 28th of AUGUST and they called me on the 14th with no answer and me returning the call with no answer. They got in touch with me on the 11th of september and myself going in to give them approval notice from navy federal that I got approved. AM I STILL ON THE HOOK TO RETURN THIS CAR SINCE IT WAS ON THE 14TH OR 15TH DAY I GOT PHONE CALL NOTIFICATION)
3.) they said I am liable for replacing the bumper even though i put backup sensors and backup camera into the car because they won’t be able to sell the car as NEW with those items attached.
Please Help. I am so lost on my rights and have no idea what I am able to do on my end.
they must "give written notice (or any other manner in which actual notice is given to me within 10 days of the date this contract is signed"
Well, they missed the 10-day deadline, so it seems to me that you ought to be able to tell them, “[stinks] to be you!” and do nothing.
I would prepare a certified letter stating the above (in more polite language, natch) and let them know you will contact an attorney in the event they pursue this further. Then actually do so, if and when they do.
What you’re going through is pretty common actually and is why you need to have any financing ironed out with your own bank in advance and keep the dealer out of it as much as possible.
If your own bank is hitting you for 11+% interest on a car loan then why would you think a dealer would be able to get it done for less than 3%…
There must be some credit score issues involved.
Personally, I think you’re on the hook for the car unless you’re financially prepared for some kind of legal battle.
Oh and to answer your question…the dealer was doing the 12.6 or whatever but they stated if I buy the extended warranty they would bring my interest rate down to 2.9… So i got the extended contract =).
He stated it was a "PROMOTION they were doing for LABOR DAY"
My credit really has nothing to do with the issue at hand to be honest… the issue at hand was mainly meeting deadlines and such.
At least you’ve got some legal backup so that may give you a leg up on sorting it out in your favor and I would think that a car dealer would not try to put something over on the JAG officers.
Thank you sir. Im hoping I win by sheer luck on this. If i have to stick with my 2008 Nissan frontier verses my 2014 frontier Its no biggy to be honest. I am just hoping I can squeak by, by them not making their deadline as stated in contract. =)
Wow. Give the car back and be happy to be out of a 7 year 12% deal. Find out what the problem was with your credit and try to fix that. You can’t afford this car.
As far as the ten days, I really think that is inconsequential. Usually the interpretation is ten business days but even then no one is going to argue over a day or two difference. You’ll look silly arguing that you can keep the car because they called on day 11 instead of day 10. Where you sit now is that if you don’t bring the car back, they will have it taken back and charge you for it. You’ll end up with no car anyway plus an extra $500 charge. Plus they’re going to hit you for the bumper damage.
Thank you for your service, sir! The problem that you have is they DID contact you within the 10 days, 10 business days, that means no weekends and you have labor day in there also. If my math is correct, the 10th business day would be September 12th. Shop around, and maybe you’ll be able to find a lower APR, good luck.
^Language (that I’m getting second hand) did not mention business days. A day is a day…if I have “30 days” to pay a speeding ticket, do you really think the Magistrate is gonna buy a bunch of “…well, it hasn’t been 30 business days yet,” now do you?
How so, Ben?
(Other than “the system’s always stacked against you.” Heck, I’d be counting hours if it benefitted me…not that I think it’d actually stick. I would expect “days” to mean “calendar days” in the absense of a definitions page defining the use of the word “Days.”)
NOTE that they did not capitalize “days” when they used it–unlike “Seller” and such–which implies there is no explicit definition of the word in the contract OP signed!
Joe, car dealers know what doing( getting as much money out of you as possible) I guarantee in all those paper he signed, those that no one really ever reads, the dealership covered there butt. I truly believe this dealership scammed him with the whole APR deal. Any finance man can instantly tell the difference between someone who will get 2.9% or 11.6%. I think they were close to bonuses and the end of the month was coming soon and they sold deals they knew would fall apart, or even better, maybe the OP would agree to the new terms( betting he won’t want to give up his new car) The dealership is shady to say the least. IMO
Yup… I concur with ben, but want to side with JOE haha! I can return the car though… So although shady… they never actually made the sale… I am only out of probably 500 dollars (bumper replacement for backup sensors and such)
Talk to a lawyer, NOW, not later. The contract does not expressly SAY 10 business days therefore it is 10 calendar days. No written notice? Also a violation.
The dealership has violated the contract. On its face, the contract appears to me to allow a classic “bait and switch”. Offer you 2.9% IF you buy the extended warranty and later claim they couldn’t get approved for 2.9% and sign you up for 12.9% AFTER you’ve owned the car for 10 days.
Have your lawyer negotiate a settlement. Likely you will be on the hook for the 12% but make the dealer pay for the increased interest. Never deal with these people again, and tell your friends. They don’t deserve to be in business.
Chicago Ben. I thoroughly read through the contract. I copied and pasted the entire section that related to them taking the car back for this reason “CANCELATION OF CONTRACT BY DEALER” When it comes to this situation, I made sure I read between all the lines. However this is a VERY HELPFULL thread and I will be contacting consumer affairs and I will keep this updated for a reference to anyone who might further be in this predicament.
Any finance man can instantly tell the difference between someone who will get 2.9% or 11.6%. I think they were close to bonuses and the end of the month was coming soon and they sold deals they knew would fall apart, or even better, maybe the OP would agree to the new terms( betting he won't want to give up his new car)
Chicago Ben- I signed a contract before the 2.9 percent interest rate at a 9.9 interest rate. It went down to 2.9 after the finance guy said if you get our extended warranty you can get an interest rate of 2.9. SO either way I got approved regardless of what the interest rate may be. Granted I won’t be buying a car anything higher than 10% My credit has no flaws on it at all as I monitor it monthly. Just a High Debt to income ratio. 20K dollar debt and make 49K / year.
Their having claimed to be unable to honor the contract after having delivered the car makes this situation highly suspicious in my mind. I strongly suggest you contact a lawyer. I don’t know how California law is written, but the contract may even be in violation of the law. Clause (b) sounds awfully shady to me.
Not to be redundant, but you need a lawyer. ASAP.
Sincere thanks for your service to our country. When I was “in”, it was not uncommon for local businesses to take advantage of GIs. This may be what’s going on here.
