Toyota dealership wants 2020 Prius Prime back

Why would that be necessary? If the postmark missed the legal rescission window, then the dealer should be stuck with holding and carrying the financing by itself, instead of assigning it to a normal financing institution. This is only the dealer's problem, not the customer's problem.

If the customer can get a better financing deal elsewhere on their own, then go for it. But if the original dealer financing was a better deal, then tough for the dealership. They should be stuck with it. A repo attempt would be no different than auto theft.

 

We need to wait for the OP to let us know what the financing rate was. I just checked the Toyota website. They have no special financing offers for the 2019 or 2020 Prius Prime. That may be the problem. It seems Toyota underwrote the loan but couldn't find financing for the OP outside of Toyota.

The 2019 Prius has 0.9% for 60 months 1.9% for 72 months. The 2020 Prius has 2.9% for 60 months and 3.9% for 72 months.

So there was no Toyota financing specials or available rates. I think normally that means you have to find financing outside of Toyota financial. I think that is the problem.

The dealer should have secured financing outside of Toyota originally if they were not offering special APR rates for a 2020 Prius Prime.

 

Yes, the dealership should have secured financing outside of Toyota. But if they missed the contract window, as evidenced by the late postmark, then it is the dealership that is stuck, not the customer. As much as they may hate it, not having their own standard in-house process and department to track loans and accept monthly payments, they must honor the deal anyway.

The customer should have no legal obligation to line up other financing or renegotiate the deal. Simply sending the previously agreed monthly payment to the dealership should fully satisfy their legal obligation.

If the dealership really wants out of this deal, their only legal recourse is to offer to give the customer back all monies paid, including down payment, if the customer will return the car. I.e. the customer had a 'free rental' of a new car. And it is still the customer's choice about whether or not to accept this offer.

 

Do you see my point? Toyota doesn't offer financing unless they are running a promotional interest rate through Toyota Financial. If the OP comes back and says. Toyota said I qualified for financing which simply means the dealership could sell the car with Toyota underwriting the financing. It's just a guess. Normally people have financing lined up before they buy a car. If someone wants financing through the dealership. It's the used car salesman routine where terms like we got a whale here or easy money and how much do you want your monthly payment which is code for sub prime financing. Those in the biz know this as the gravy train.

Another guess is that Toyota underwrote the sale with the OP having 10 days to secure financing. Perhaps not understanding that Toyota financial vouched for the sale making it possible for the OP to drive off with the car.

Car buying can be a very stressful situation for a buyer. It's possible the OP negotiated a purchase price with rebates and a purchase agreement without financing but a guarantee by Toyota financial giving the OP 10 days to secure financing. That is my best guess. Car dealers will not let a new car drive off the lot without some financial institution guarantee on the vehicle.

 

I don't see the relevance. The dealership made a deal, then sent out a rescission letter, but too late.

If Toyota Financial declined the financing portion of the deal, then the dealership should legally be stuck with the contract, and obligated to self-finance.

OP's posting suggest that the only letter(s) came from the dealership, not Toyota Financial. This supports the appearance that the dealership is the only entity with any financing skin in the game.

 

After re-reading the entire thread. We are not in disagreement here. It does sound fishy. But how many Uber drivers can put down 40% of the purchase price with a credit score around 800? That should be a gold plated deal with any bank. We need more details from the OP.

 

Clue me in here. You don't see the relevance. What was the purpose of starting this thread? You already refinanced the loan. You left us all thinking your car was going to be repossessed. Who sends a letter to Toyota saying I decline your request to rescind after refinancing with the local credit union?

 

As you mentioned earlier, his credit score and down payment should make for a gold plated deal, not a refusal to provide credit. That is why this smells like a cover excuse rather than the real reason to rescind the contract, such as seller's remorse on selling for too low a price. So there might still be some effort by the dealership to somehow rescind the sales contract.

 

Sounds like a Tesla.

Mike

 

So this whole thread is basically moot?

However, I'm curious why you didn't go into the dealership with pre-arranged financing from your credit union. That would have avoided this whole headache.

 

And you seem to have missed the WHOLE point of about 30 answers or so.
There are no "rights" involved.
The whole thing is a marketing scam.

 

I am pretty sure it is the state that issues you the title. The bank just cancels their lien against it.

 

That depends on whether you signed a contract with the dealership to finance it. It sounds like they quote you financing terms that they think they can secure, but not contract to actually finance it under any terms. That means they can demand immediate payment in full or repo the car.

 

Sellers remorse?

lol

 

Yes -- someone up the management chain decides, after the fact, that the sale price was too low

The OP mentioned a 10 day dealer rescission term, but it was postmarked too late to meet that contract deadline.

Different states have different contract and consumer protection laws. In some, such as I believe in mine, they have room to screw themselves and possibly end up stuck, carrying a loan themselves when they can't sell it to some third party finance company as intended.

 

*deleted*

 

Under what terms? Does the contract actually specify the terms of the loan, or does it only say they will try to secure financing. If it's the former then yea, they can be stuck with it unless there is a cancellation clause and they don't miss the deadline, but if it is the latter then they don't have to give you any loan terms and can just require full payment.

 

OP, Thanks for your lesson learned. Next time I visit a dealer for a car shopping, I will make sure to have a cash to pay in full or have financing secured. At the least, I will not take a shaky spot delivery of a car. If needed, I will put refundable good faith down payment to secure the sale and revisit the dealer later to close it.