Here’s the script for the “Car Finance Paperwork” video above:

You’ve just signed the final documents to buy the car and may even be pretty tired at this point.  We’re not done yet, though, so let’s talk about wrapping up the car finance paperwork.

This process has likely taken a few hours, and you will likely be very ready to just get in your new car and go.  Once all of the documents are signed, the business manager will put all of your copies into an envelope for you to take home.  Our clue as sales reps that everything was good happened to be when the customer emerged from the business office holding an envelope, which is what almost always happened.

There are a few considerations for you before leaving the office.  First, if the deal isn’t what you agreed to, don’t hesitate to walk away.  Seriously, if the dealer isn’t negotiating in good faith, then leave.  Don’t worry about the fact that you will have spent hours there and left with nothing.  It’s better to waste a few hours of your day than to be saddled with a bad commitment for years.

Don’t hesitate to read the entire long-form before signing it.  You can take it out of the business office if you want to or are feeling pressured.  Ask to be left alone so that you can focus in a quiet environment.

car finance paperwork

It even says on the contract that you are free to take it and review it before signing!

I can’t stress enough the finality of that contract, so make sure you read the entire thing and study the front and back examples of what I provided.

Finally, you may sign everything, drive home, and get a call from the dealer in a couple of days asking you to sign a new agreement.  Do not feel like you need to sign any new car finance paperwork unless it benefits you.  There is an important provision on the back of the long-form titled “Seller’s right to cancel,” and you should be aware of this clause.

Franchise dealers aren’t in the business of carrying your note, so will attempt to assign the agreement.  If for some reason, they fail to assign the agreement, they may attempt to have you sign a different agreement that then can be sold, but it usually won’t benefit you.  The reality is that they only have two legal options available when they can’t assign the contract to a lender.

They can either:

  • Ask for the vehicle back
  • Carry the note themselves

That’s it!

They only have 10 days to make this determination and notify you in writing.  If they contact you on the 11th day, it’s too late to cancel, and you will make your payments directly to the dealer.

If they’re trying to get you to sign a new contract with a higher rate, there may be some type of yo-yo fraud involved.  Don’t feel like you have to sign any new car finance paperwork that doesn’t benefit you.  Inform them that they will have to cancel the sale per terms of the contract and return your down payment and trade-in if applicable.

Ultimately, this type of action is extremely rare for a dealership, and if it does happen to you, reach out to an attorney in your state to verify your rights.

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