I've just overheard a co-worker about a deal gone bad...

Her son bought a new tuck at a dealership last week.. signed paper work and are told dont worry abou the financeing.. "its taken care of"..
Well last night the sales guy called her house asking for her son.. .. reason.. finance didnt go thru. and they need the truck back..  Son says "yada. yada yada.." but still no finance.. he agrees to drop off the truck today after work and as a slight remark says.. I like my mustang better anyway.. < the car he used as a down payment>  
Sales guy: " Oh yeah, sorry your car was sold already"

man thats gotta suck.

..

Tell the coworker to sue for recovery costs or have the dealer find a car to replace it.  Then sue the shit out of the salesman personally.

This doesn't sound right though.  Financing is done before ANY paperwork is completed.  I really think this kid should hold onto the car until a replacement is found for him.  He's entitled to the car under the terms of the contract.  Dealer screwed up and not only failed in his obligation to procure the financing, but then sold the kid's car.

There's more to this.

I sell cars for a living

Its all bullshit.  All they are trying to do is get him to sign at a higher rate.  If the car he traded in has been sold, he can sue their asses off.  The car hasn't been sold.  The dealership is just playing games.

One thing to remember is that the dealership isn't the bank.  The dealership tries to stay within the banks approved lending rates based on your credit.  Dealerships will often put a guy on the road knowing that the bank won't approve the loan at the rate the guy signed it.  But the dealership hopes the guy falls in love with the car and agrees to a higher rate and more money down.

The salesmen has no culpability.  He didn't sell the guys trade in.  

Hopefully this will reach the young man, who can put the information to good use.

If the dealership is asking for the truck back from the kid....why can't they ask for the mustang back from the third party?

same thing happened at work this week.

a guy buys a new neon 180 hp delux version for a payment of $299/month.

420 miles later...the dealership calls up and says they screwed up...and the "correct" payment is $440/month! they wanted 'their' neon back...and same deal...they sold the guy's trade in cirrus, already!!!!!

my co-worker's lawyer said, "tough shit! the contract is signed...that neon is yours at $299/month.".

the dealership tries to talk him into trading the new neon for a used demo model!!!

well, today, the guy comes tooling into work in a brand new cirrus...he gave them the neon back after swinging a great deal on the new cirrus.

Wow, this happens a lot.  My friend bought a Contour SVT and traded his pos taurus, after a week and 1,000 miles they call and tell him the financing didn't go through and he needed to bring the car back.  They tried to make him pay for miles but I made sure to tell him not to pay a dime and get his car back and at least he got his old car back and got to drive a pretty sweet car around for a week.

This is a very common scam by car dealers.  Before anyone buys a car they should check out the website: www.carbuyingtips.com  It has tons of info about pricing, haggling over price, insurance and financing.  there is also a list of the top scams dealers try to pull.