I’m sure the dealership would love to tell you that you must buy the car, but you do not. Without a signed bill of sale, the car still belongs to the dealership. As such, they have insurance that covers accidents that happen while someone is test-driving the vehicle. Do not be pressured into buying a car at a rate you cannot afford. When the finance company eventually comes along to repossess the car, all of your payments are wasted money.
Offering a low rate and then taking the offer away at the last minute is a classic dealer tactic to get you to buy a car for a price you don’t want to pay. It’s called “bait and switch.”
You also have consumer protection laws that give you a certain amount of time to change your mind after signing a contract on a car. Check with the attorney general in your state to find out the time window. While I mention this to help you understand your rights, the contract is not valid if the dealership does not hold up their offer of the lower interest rate. Here’s where it gets sticky:
If they do offer the lower rate after the fact, you might have a valid contract. However, what date does your right to pull back start on? The date you signed or the date the dealership agreed to the 6.99 rate? A matter like that needs a lawyer’s attention.
If it is determined that the car is your son’s, he will probably be covered under a policy existing in your household. If he planned to put this car on a policy he already had, he would be covered for a grace period, usually about one week, before adding the car to the policy.
Best to talk to the dealership and calmly discuss the situation, once you know your time window for pulling out. See what the seller’s position is, but whatever you do, do not agree to pay that higher interest rate. They simply cannot hold you to it.
