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.

Answer
“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.”
avatar
Eric Schad
Answered on Jul 03, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies