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Can a car dealership sell your loan to a different lender?
I purchased a car last week for $10,000 and made a $5,000 downpayment. I financed my car with the dealership for a 29% interest rate. I just found out I have a new lender and they are charging me an additional 9%. Is a dealership allowed to sell your loan?
Emily Maracle · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
I’m sorry to hear this is happening to you! I’m sure it’s incredibly frustrating to agree to one rate and discover you’re paying even more.
Given your situation, it is likely you were given the car on spot-delivery. Spot-delivery means you get the car on the spot, but the dealership still has to find a lender for you.
In all likelihood, the dealership thought you qualified for a 29% interest rate with a lender. Then, when your application went through, the lender determined you qualified for a higher interest rate. Since the lender the dealership placed you with informed you of this change, it’s why it seems as though the dealership sold your loan.
That said, you aren’t required to accept this rate. Spot-delivery agreements typically allow you to return the car or try to negotiate your terms if you’re unhappy with the final agreement.
In this situation, the best thing you can do is review your loan documents. Your finance paperwork should detail your interest rate and any terms or conditions. If something doesn’t seem right, don’t be afraid to call the dealership or lender directly.
Once you’ve got your finance agreement figured out, don’t forget to protect your car with a great
car insurance
policy from the Jerry
. The Jerry app helps you find the best car insurance coverage for the lowest rates in seconds from over 50 top insurance providers.Good luck!
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