Can a car dealer change your lender without warning?
Can a car dealer legally change the lender without telling you? I got a letter in the mail today saying that the dealer had changed the lender for my car loan.
Reviewed by Shannon Martin, Licensed Insurance Agent.
“It all depends on what the terms of the contract said.
If you used in-house dealer financing, they may have just sold that loan to another lender to get some capital. This is a practice that’s common in both the car and mortgage loan industries.
However, if they changed your lender without notifying you or without that language in the contract, you can take legal action, but it may not be worth the time and hassle.
amount remains the same, there’s no reason why you would pay hundreds or thousands of dollars to a lawyer just to pay the same amount of money to a different lender.
So check the terms in your contract; chances are that the dealer simply sold your loan and it’s not a huge deal.”
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.