Dealership Returns and Financing Issues in Florida: What You Need to Know

When purchasing a car from a dealership in Florida, there are several legal and financial considerations to keep in mind, especially regarding financing and returning the vehicle within a short timeframe. If you've signed a contract and made a down payment but find your financing approval is rolled back, you might wonder: if the dealership can take the car back after you've had it for just two weeks? This comprehensive guide addresses such concerns and explores the nuances of dealership policies, customer rights, and potential financial implications.

The Role of Financing Approval

Financing approval is a critical step in the car buying process. Most dealerships do not deliver a car until they have secured financing from a lender or the manufacturer's credit program. This ensures that the customer can afford the total cost and that the dealership will not lose money if the financing falls through.

How Dealerships Handle Financing Rollbacks

When a financing request is denied, the dealership may offer to return the vehicle and refund the down payment. However, this process can be complicated and financially damaging to the customer. This is why understanding your rights and what to expect is important.

Customer Rights and Responsibilities

According to Florida law, dealerships have a responsibility to inform customers about potential financing issues before the final sale is completed. If a financing check is pending and not guaranteed, the dealership should clearly communicate this to prevent misunderstandings.

Contractual Obligations

The contract you sign with the dealership includes a clause that allows for the return of the vehicle if the financing falls through. In such cases, the dealership is typically required to return the full down payment to the customer. However, if you agree to keep the car and make alternative payments, you can avoid having to pay additional fees.

Financial Implications

If the financing is denied after you've already taken possession of the vehicle, the dealership may require you to pay additional fees. For instance, you might be charged mileage fees (often 50 cents per mile), rental fees, and possibly other charges. If you cannot afford these additional costs, you might be forced to forgo the down payment and start over with the remaining amount.

Example Scenario

Suppose you made a $1,500 down payment and drove the car for two weeks. During that time, you have put 800 miles on the car. If the bank denies your financing request, the dealership might state that you must choose between paying an additional $1,000 to keep the car or simply returning it.

If the dealership imposes fees for the miles driven and rental costs, your total charges might add up to $890 (800 miles at $0.50 per mile $15 per day for 14 days). By signing for the $890 refund of your $1,500 down payment, you are essentially losing $610 (the remaining $610 of your $1,500 down payment).

Challenging the Dealership

To protect your rights and minimize potential financial loss, you should advocate for the return of your full down payment or at the very least, seek to negotiate with the dealership. Legal advice can be invaluable in these situations, as it can help you understand your rights and negotiate a fair resolution.

Conclusion

Dealerships have the right to ask for the car back if financing is denied after it has been delivered to you. However, the financial implications can be significant, making it crucial for you to understand your legal rights and negotiate effectively with the dealership. By being informed and aware of the risks and potential outcomes, you can better protect yourself and avoid financial distress.