Q: Can a car loan be rescinded if I already signed the contract and drove the vehicle off the lot?
Apr 27, 2021

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
Eric Schad
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Since the lender denied your application and the dealer rescinded the purchase contract, you have to either bring the car back, collect your down payment (if any), and walk away, or you can try to find a different lender.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.”

Not quite the question that you were looking for?
Our insurance agents are ready to help you, for free.
Ask your question
Have an insurance question?
avataravataravatar
Our insurance agents are ready to help you, for free.
Ask your question
Our customers say the nicest things
Our members, saved over $5 million in the last 30 days
Find savings (100% Free)
Rated 4.7/5 in the App Store
logos
logos
logos
This app is truly amazing and I recommend it to everyone. They were able to save me over $100/yr on car insurance, and I hardly had to do a thing. They got finalized quotes for me in minutes, and I didn't have to call anyone. They also canceled my old policy, and got me on to my new one for me!
Jerry.ai is the easiest way to compare and buy car insurance
arrow
No long forms
arrow
No spam or unwanted phone calls
arrow
Quotes from top insurance companies
Find savings (100% Free)
4.7/5 Rating on App Store
Have an insurance question?
avataravataravatar
Our insurance agents are ready to help you, for free.
Ask your question
Our customers say the nicest things
Our members, saved over $5 million in the last 30 days
Find savings (100% Free)
Rated 4.7/5 in the App Store
logos
logos
logos
This app is truly amazing and I recommend it to everyone. They were able to save me over $100/yr on car insurance, and I hardly had to do a thing. They got finalized quotes for me in minutes, and I didn't have to call anyone. They also canceled my old policy, and got me on to my new one for me!