Don’t worry, you may refinance in six months

A client called in with a problem with her dealer. She had been asked to co-sign for a friend who did not qualify for financing. When she hesitated to sign, the car dealer told her “Don’t worry, after six months, you can return to the dealership and have your name removed from the loan”. The client fell for this lie and found out when she returned to the dealership that this was a lie. Worse, the car dealer denied telling her this.

Don’t fall into this trap. A dealer signs a contract with you to purchase a car and you agree to make payments to the dealer. The dealer sells the contract to a finance company. You then start making payments to the finance company. The dealer has nothing more to do with that contract and has no authority to make changes to the contract that is now owned by the finance company.

This happens all the time. A dealer will tell you anything to get you to sign the documents and drive the car away. You are then stuck with the consequences.

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