LYTTSPD

Last weekend my wife, Amber, and I went down to the Toyota dealership near us and took a look at a new Tundra. We decided to buy the truck. The financing was pending our credit union's ok. We drove the truck home and were happy.

The weekend passed and Wednesday arrived. The credit union and Toyota contacted us and said that our credit was fine but that our debt to income ration was too high for approval. We were denied the loan. Toyota said that they could get us a higher interest rate through another of their lenders but, of course this would make a higher payment. He also said that we could bring the truck back and pick up our trade-in and have no financial obligations to them. The last statement was made to both me and Amber but, it was over the phone. The nutshell of me and Amber's following dialogue was that we truly did not want the truck and we would just take it back.

I cruise down to the dealership and expect them to try and sell me on the new interest rate. I was right. He trys to get me to agree to a payment that is about 35 bucks higher. "No go", I said. I told them to just take it back. He then comes to me with another contract showing the higher interest rate but, a lower principal. The payments would stay the same with this new deal. I told him that regardless of the payments staying the same we would like to bring the truck back.

After much deliberation with his manager he comes back and tells me that Toyota will "cash out" the contract/loan, buy the principal down, go with the new interest rate, and told me to enjoy the truck. Basically too bad so sad.

What the hell just happened?? I didn't sign any new paperwork and didn't agree to anything other than my original loan terms. Is there something either unwritten or buried in the legal jargin of my original contract that allows them to do this to us?

Please give me some advice. I have no clue what is going on now. The only thing I think we should do is try and refinance the new principal at a lower rate somewhere else.

Thanks

Rennen

...net-zero for you, do what he says and enjoy the truck.

Lone Starr (Ivan)

"decrease the principal". But, sounds like a good deal. Enjoy the truck. Unless it was an impulse buy and you really don't want the truck. In Florida you have 3 days to change your mind on a contract.

TTom TTR

...they were desperate to sell the truck. They met your requirement, payment, why do you want to back out now? I'd take the deal.

I've been tempted to check out the 0% loans that are being offered, but then again they are for a bunch of cars I don't like.

LYTTSPD

The very next day we started talking about it and decided that we were being ruled by emotions not by logic. Here is AZ we have the same 3 day deal. Kinda sucks when you come to the conclusion that you don't want that truck after the 3 days.

Rennen

So you drive their truck around for a couple of days while you decide whether you really want it or not? I don't think that's too cool. You should do the stand-up thing and keep the truck. Especially since they have bent over backwards to help you do just that.

RTinNYC(again)

had probably already filed something related to titling the vehicle. They probably just approved your credit based on a score, and not a full profile, hence the further deliberations... This is a tactic used to make people leave the dealership with the car, and to thereby enter an open-ended contract...

LYTTSPD

I'm sure you have too. I was hoping that, under the circumstances of the loan being declined, that we might be able to correct one of our mistakes. We were weak and ill-prepared that day. We were the typical american consumer. After we bought the truck a little logic seeped in slowly. And after the loan decline, the logic came flooding in. We shouldn't have bought the truck.

Rennen

...consequences. You're trying to correct your mistake at someone else's expense. Sounds like you are on a little bit of thin ice financially and should not have made the truck purchase. However, that's a decision you need to reach before you sign a contract, not after. It's nobody's job but yours to know your financial condition and how much credit you can take on. Sounds to me like the dealer worked on good faith with you and you're trying to take advantage of them. Do what you like, but I don't have much respect for your proposed solution.