Dealer Tricks – Subject to Financial Approval

There is the small, fine print included in the contract which states “subject to financing approval”. Some consumers don’t really read it and get in trouble. Later when you do not agree to pay a larger down payment and higher interest payments the car dealer may tell you that they will report the car as stolen. If it’s already a while that you have purchased the vehicle then you cannot cancel the deal and your trade-in has already been sold.
There is another variation on this fraud, when the dealer calls you a few days after you have driven the car off the lot without a signed finalized finance deal in hand and informes he can lower your monthly payments if you sign a new contract but he actually ends up raising your annual percentage rate thus charging you more by spreading your payments over a longer period of time.