What happens if I get into an accident in a car and then my financing gets declined?
I'm buying a car from a dealership with a trade-in and a down payment. I have negative equity on the trade-in, so I'm actually $6,000 upside-down on the loan after my down payment. I got into an accident a few days after driving the car off the lot and my insurance is paying for repairs. However, my financing has been denied. The dealer wants me to come back in and do some more paperwork to find a new lender. What happens now?
- Go back to the dealer and fill out the paperwork for a new loan/lender. Hopefully, you don’t get denied.
- See if you can get your old car back, as the dealer may legally have to take the new vehicle back and give you the old one.
- Consult a lawyer to see what your best move is.