If a dealership let you take a vehicle but couldn't obtain an approval from a lender, bring the vehicle back immediately. Since the vehicle isn't paid for, it still belongs to the dealer. If you don't bring the car back, the dealership can report it as stolen. Most dealers will work with you if you are out of town or need a day or two to return the car, but don't assume so.
Issues with the Purchase
A dealership does not directly lend money. If you purchased a vehicle after banking business hours and signed paperwork, the paperwork you signed was never processed. Dealers have lending contracts on-hand, which they may have had you sign but never sent to the lender. Usually, a dealer will call a lender to obtain a definite approval, but if not, he will have you sign contracts if he believes the lender will approve you after receiving your information. The decision is based on your credit information, down payment, the vehicle you choose and your budget. If the bank declines the loan afterward, the dealer probably doesn't have another lender to extend you a loan.
Why You Can't Keep the Car
You can't keep the car because it belongs to the dealership. If you check your paperwork over, you'll probably find that you signed a buyer's order, which states that your purchase was subject to financing or payment. Even if you added the vehicle to your insurance policy, you probably have a dealer plate on the vehicle. Many dealers require buyers to sign a dated document to keep in the car for a dealer plate, which has an expiration date. If you're pulled over while using the dealer plate with an expired document, you might run into problems. The dealer can also report the vehicle as stolen if you refuse to return it.
When to Retun the Car
Return the car immediately unless you are able to pay for the vehicle in another way. Read through your paperwork to determine if the dealer provides a time frame for the car's return. You might also call your state Attorney General's office or motor vehicle department to find out if you have any rights. Otherwise, arrange for a ride and bring the car back to avoid police interaction. If you can't immediately return the vehicle, let the dealer know, he may work with you.
Other Option
You can keep the vehicle if you can obtain your own financing. You don't have to use the dealer's financing options to secure a loan. Try to apply to another lender for the amount stated in your buyer's order. If your application is declined, use a cosigner. A cosigner, who should have good to excellent credit, can join you on the application to secure the loan. Lenders also use a cosigner's income and score to determine rates and lending terms, so you might obtain a low rate and payment if you apply with a cosigner.
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