October 17, 2010

Co-signer never signed paperwork at dealer. I signed some papers. Is the deal final?

By Planet Wealth

I bought the car 2 weeks ago. That day I traded in my car and got a new one. My sister lives in another state the dealer place her as the buyer and me as the co-signer because she has a better credit score. The dealer hasnt recieved the paperwork that she was supposed to sign. They have been calling every day. They threatened me yesterday saying they would take the car back if I didnt bring them the paperwork by tomorrow. Is that legal? Is this deal final? Can I back out ? what are the options here?

Topics: Uncategorized | 5 Comments »

5 Responses to “Co-signer never signed paperwork at dealer. I signed some papers. Is the deal final?”

  1. VJB Says:
    October 17th, 2010 at 12:44 am

    You may loose your down payment.
    You can always backout. Let them take away the car.

  2. xx_satanic_mechanic_xx Says:
    October 17th, 2010 at 12:44 am

    Really, there is an even larger issue at work here.

    This is what is known as a ‘straw buy’. Your sister is presenting herself as the primary buyer of the car, when in fact it is you. Should hte bank find out about this, they can cancel the contract completely, and more.

    If your sister has not signed the papers, how could the deal be done? She is the buyer. The buyer hasnt signed. That means there is no contract. Of course they can take the car back. They dont have a signed contract, and they will not get paid for their car.

    Do yourself, and your sister, a favor. Take the car back, and get out of this deal. This has the potential to ruin her credit, and turn into a huge hairy mess.

  3. ElGrande Says:
    October 17th, 2010 at 12:44 am

    Satanic Mechanic is 100% right. When I was in the finance office at a dealer, I would see this often.

    Some things to consider:

    1) YOU didn’t buy the car. Your sister technically is. This car will be in her name.
    2) If you were to call for insurance, it would be on your sister’s policy.
    3) When your insurance sees that she is the primary on the title, they will say the lender, who will then see this as a straw buy and probably raise the red flag.

    Keep in mind, the dealer owns this vehicle until the lender signs off. Until your sis signs the papers, this deal is not valid. This car still belongs to the dealer.

    I agree wholeheartedly with Satanic… take this back and start over.

  4. peterthegreat Says:
    October 17th, 2010 at 12:44 am

    If your sister hasn’t signed the papers, the loan has not been approved, and the car still belongs to the dealer because he hasn’t been paid for it by a loan company or bank. Sure it’s legal, it’s his car, not yours. Of course, if you let it go back, your trade vehicle is probably gone by now.

  5. alfredb1979 Says:
    October 17th, 2010 at 12:44 am

    Technically, you haven’t bought a car yet.

    It’s not paid for.

    Your option is to take the car back and walk home.

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