Can a dealership ask my daughter to resign on her car loan for a higher rate?

Can the dealership change the interest rate on a car loan after we signed? My daughter bought a car on Saturday and the dealer said her rate would be less than 3%. On Monday, the dealer called and said that they needed her to come back in and resign on the car for 3.75%. This doesn’t sound right to me.

Answer
“She should look at the papers she signed. One of them will have details laid out about spot delivery. That’s when you take possession of the car without working out financing first. It should clearly state this as a possibility and that she was informed that it could happen.
As far as the difference in interest rates, .75% is not going to make a noticeable difference in her payments or her terms.
If this does make you or your daughter uncomfortable, you can try returning the car, but know that the dealer may not return all of your down payment.
Another option is to take this deal and try refinancing later on. Just be sure that the length of the loan isn’t too long, or else you will end up spending more in the long run.”
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Johnny Puckett
Answered on Jul 07, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.
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