Should I return the car to the dealership or resign a different loan agreement at the dealer’s request?

Can I just return the car, get my down payment back, and move on or would it be better to go along with the dealership? I bought a car, signed, and drove it home the same day. The dealer called today and said they need me to come back in and resign on the car because the financing fell through. They did say that the new terms will actually be less per month and will save me a little bit of money but this feels a little too good to be true.

“It sounds like what happened is that the dealership is trying to finance the car for more than what the car is worth. Instead of asking you for a larger down payment, they are going to knock some money off the price to be able to get you financed.
It is up to you, but it seems like the dealer is working hard to get you in the car. At least the dealership is not asking for more money or a larger payment.
If you do decide to give the car back, you can expect that you won’t get your full down payment back–if at all–and you will probably see your credit score drop.”
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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