Can a car dealer change your lender without warning?
Can a car dealer legally change the lender without telling you? I got a letter in the mail today saying that the dealer had changed the lender for my car loan.
“It all depends on what the terms of the contract said.
If you used in-house dealer financing, they may have just sold that loan to another lender to get some capital. This is a practice that’s common in both the car and mortgage loan industries.
However, if they changed your lender without notifying you or without that language in the contract, you can take legal action, but it may not be worth the time and hassle.
If your new car loan amount remains the same, there’s no reason why you would pay hundreds or thousands of dollars to a lawyer just to pay the same amount of money to a different lender.
So check the terms in your contract; chances are that the dealer simply sold your loan and it’s not a huge deal.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
Does car insurance get cheaper the longer you have a driver's license?
Everyone says that new drivers have to pay the most for insurance. So does that mean I'm going to pay less over time? Is it because I've had my driver's license longer?
Mar 12, 2021
Can a car dealer continue to pull my credit for financing?
"Can a car dealer legally keep pulling my credit? I've gotten updates on my phone from Credit Karma about hard inquiries on my credit report. In the past two weeks, a car dealer I've been working with has pulled my credit three times."
Jul 03, 2021