What does a null-and-void car loan mean?

I traded in my old car for a used vehicle worth $4,000. I've been driving the car for a few days. Then the dealer called me, saying financing fell through and the loan is null and void. What does this mean?

Apr 27, 2021
Answer provided by
Eric Schad
Answered at Apr 27, 2021
“If the loan is null and void, that means it’s no longer a legally binding document. Because of that, you technically don’t own the car anymore. As a result, you’ll have to take it back to the dealership.
However, you should get your down payment (if any) returned and credit for the value of your trade-in. Unfortunately, you’ll be without a car for a while. It’s in your best interest to find out why the loan fell through and what you can do to secure financing.
In the future, make sure to get pre-approval before you go car shopping. This is a rare instance where the dealer let you drive away before approving you for financing. Be wary of such dealers in the future and go to a bank or credit union for financing.”
Car Loans

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