Car Dealer Changed the Financing After Delivery

How These Disputes Commonly Develop

A consumer visits a dealership, negotiates a vehicle purchase, and signs a retail installment contract or financing agreement. The dealer arranges financing through a lender and the consumer drives the vehicle home. Days or weeks later, the dealer contacts the consumer and states that the original financing fell through and that the consumer must sign a new contract — often with a higher interest rate, a larger down payment, or different terms.

This sequence is sometimes called "yo-yo financing" or "spot delivery." The consumer has already taken possession of the vehicle and may have traded in a prior vehicle or made a down payment. The dealer's request to sign new documents may arrive by phone, letter, or in person.

Facts That May Help the Firm Understand the Matter

• The exact terms in the original contract, including interest rate, monthly payment, and total financed amount
• The terms in any replacement contract the dealer requested
• The date the consumer took delivery of the vehicle
• The date the dealer contacted the consumer about new terms
• What the dealer said about why the original financing was not approved
• Whether the consumer signed a second contract
• Whether the consumer returned the vehicle or retained it
• Whether a trade-in vehicle was involved and what happened to it
• Whether a down payment was made and whether it was returned
• Whether there are any pending repossession notices or collection communications

Documents to Preserve

• The original retail installment contract or financing agreement
• Any replacement contract the dealer asked you to sign
• The buyer's order or purchase agreement
• Any written communications from the dealer about financing
• Text messages, emails, or voicemails from the dealer
• Trade-in documentation and any payoff confirmation
• Down payment receipts
• Any repossession or collection notices received
• The vehicle title or registration documents

Questions the Intake Should Answer

• What did the original contract say about the interest rate and monthly payment?
• What did the dealer say when it contacted you about new terms?
• How much time passed between delivery and the dealer's request?
• Did you sign a second contract? If so, what were the new terms?
• Is the vehicle still in your possession?
• What happened to your trade-in vehicle?
• Have you received any repossession or collection notices?
• Is there a pending court case, arbitration, or other proceeding?