PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
Can a dealership cancel an auto loan after letting me drive off with a Toyota Highlander?
"A dealership said I could finance a new Toyota Highlander with a trade-in and $1,000 down. Then I got a call that said the lender can't do the deal unless I put $2,000 down. I didn't want to negotiate, so I let the problem go.
A month later, I get a letter saying my financing is canceled. Can an auto dealership do this?"
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“In short: yes, they can cancel your car loan. The dealer works as an intermediary between you and the lender. While they can give you the car before the final loan approval (called a spot delivery), that doesn’t always mean you’re financed.
If the lender says your down payment wasn’t enough, the loan can be canceled as long as you’re notified within 10 days of the purchase date.
Because they already canceled your loan, you’ll have to reapply. Chances are you’re going to have to hand over the additional $1,000 for the down payment. But, in the grand scheme of things, that’s not a ton of money to pay to solve your problem.
In the future, you should try to find pre-approval, or go to the lender yourself, rather than going through the dealership. Not only will you get a yes/no answer, but you might also save some money on the rate.”
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
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.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies