So I went 2 weeks ago and leased an F type R. (110k msrp)
I gave 5k down and my payments are $690 with tax.
Now the dealer is calling me saying the bank is not approving my application unless I get a consigner (first car) or give a bigger down. I don’t have money for a bigger down until Jan 15 (my bonus) and digging up a co signer will be a mission.
Ive put 700 miles on the car. Do you think the dealer will offer a better deal to incentivize me to find a co signer. I’m 100% willing to take the car back. Should I even try?
i was told the same thing when i leased a highlander last year… i called my friend/broker and asked him for help… he told me just throw mileage on it, and the next time they call you back tell them that your sorry but have alot of driving recently and the car has xxx miles on it and counting… i did that and 12 hrs later i got a call “we are happy to let you know that we worked it out”…
It’s definitely possible. He was spotted the car. Basically finance pulled his credit, thought it was strong enough for tier 1 approval, so they spotted the car and sent the contract to the bank. Bank looked it over, denied it because they think he’s a tier 2/3, etc. so they’re not funding the deal.
There was a contract mutually signed with mutually agreed terms and consideration (your down payment and signature, their car).
They are not able to honor the agreement, so they must void it.
When the agreement is voided, consideration from both parties must be returned.
Unless they can prove you intentionally misrepresented on your application or you drove excessive miles after you found out that they needed to void the contract, they have no claim on you for the mileage.
So, now that you know, I would drive the car as little as possible. I would also take a time stamp photo of the odometer to prove you didn’t drive excessively after you found out. Then, tell them you understand but you cannot meet the new terms of the agreement, so if it must be voided you’re happy to bring back the car and receive your down payment back. They will either agree or tell you nevermind and will honor the original contract. They may offer a compromise deal, but then it would be up to you to take it if you want.
Yeah as @amasih outlined, I think it’s pretty straightforward. Obviously the dealer is going to try to strong arm you since they are the party that stands to be the one caught holding the bag if you relinquish the car.
They can’t keep the down payment, that would be illegal. Typically, dealers that I’ve worked at would charge the standard per mile charge for miles driven IF and only IF the customer was being a dick/douche and putting a shit ton of miles on the car after the fact and dodging calls/emails. Keep in mind that the dealership still owns the car, not the bank. They will send a repo man for it if it’s not returned and an agreement isn’t made. Yes, he signed a contract, but that contract has a “Spot Agreement” Clause or something similar stating that if the bank doesn’t approve the contract, then the vehicle must be returned in the same condition it was taken including miles. Now, most dealerships don’t worry about a few hundred miles as shit happens and it’s usually not worth the hassle, especially if it’s not the customers fault. But, when talking about a $110k car, I don’t know how they will act.
It takes several days for a deal to get funded. My brother leased his car, he was 22 at the time with an 840 FICO. The finance guy swore up and down it wasn’t his real credit profile and he’s never seen a kid with a score that high and that it was probably an error. The dealership didn’t want to take a risk, so my brother couldn’t take the car home until the deal was funded and the car no longer ws the responsibility of the dealership. It took about a week.
