What should I do if a Toyota dealership lied on loan application?

After financing through a Toyota dealer, I received a car loan through a local credit union. When the credit union called me to verify information, I was told I couldn't be a member because I didn't work or live in the right county. The credit union then denied the loan, so now I have possession of a car with no car loan. What should I do now?

Answer
“The Toyota dealership is likely aware that the loan has been denied. You may have to go into the dealership and reapply for financing.
In the meantime, go to your bank and see what they can offer you on a car loan. If you have decent credit and a good relationship, they’ll likely approve you for financing.
If you decide to go back to the dealer, ask to speak with the finance manager about the situation. They should be able to provide you with more information as to why there was a discrepancy in the information given to the lender. You can also find out what options you have for financing.
It’s fairly common practice for dealers to allow buyers to drive off with a car before financing has been finalized. That said, if you’re concerned about the dealership’s practices, you can always contact an attorney.
Dealerships are a business whose goal is to make money. They might not be scamming you, but they could be looking for ways to make money off of you. Another way dealers can earn a profit off your business is by selling you their car insurance, which is often higher than you could qualify for with other rates.
To ensure you’re saving money, try the free Jerry app. Jerry compares rates from the top 50 companies and delivers the best deals to your phone in minutes.”
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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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