Is it legal or ethical for a car dealership to refuse my financing?

I was preapproved for a car loan with my credit union. I went into the dealer to buy the car and they showed me the door after I refused to use their financing and wanted to use my own. Is this legal, ethical, or common practice by car dealers?

Answer
“It’s legal and ethical as they’re a business. They don’t have to sell to anyone they don’t want to, as long as it’s not based on race, gender, or sexual orientation.
That said, it’s somewhat confusing because they let a sale walk out the door. But there’s always two sides to every story. Maybe the dealership had a bad experience with your credit union.
If you feel that the decision was biased, you can report the dealership to the Better Business Bureau and speak with the manager of the dealership. You can file a consumer complaint with your state’s Department of State as well.
Otherwise, you can accept their decision and look elsewhere. It’s unlikely another dealer will turn down a check in hand, even if it’s with another lender.
When you do get the keys in hand, don’t forget that you will need proper coverage for your new car. If you haven’t already found insurance, use the free Jerry app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”
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Eric Schad
Answered on Aug 02, 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.
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