Can a car loan be rescinded if I already signed the contract and drove the vehicle off the lot?

I purchased a car from a dealer. At closing, they said my financing looked fine. I signed the papers and drove the car home. A week later, the dealership called and said that the lender had kicked back our loan. I already sold the car I had. What now?

Answer provided by
avatar
Eric Schad
Answered on Apr 27, 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.
“In most states, a dealership has a 10-day period where they can cancel a purchase order. This cancellation can be for a variety of reasons, but most commonly, it’s because of the rejection of a financing application.
Since the lender denied your application and the dealer rescinded the purchase contract, you have to either bring the car back, collect your down payment (if any), and walk away, or you can try to find a different lender.
Keep in mind that if you got rejected on your first application, you’ll probably face a higher interest rate. But since you already sold the car you had, this still might be your best option.
If you find another lender, keep making payments on time. Then, refinance the vehicle when your credit score is higher.”
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