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RICHMOND
Legislation solidifying the right of car dealers to repossess a just-sold vehicle if the buyer's financing falls through has hit a snag in the General Assembly.
The Senate Transportation Committee unanimously endorsed the bill Thursday, but added a clause requiring the assembly to pass the bill again next year before it takes effect. That gives lawmakers more time to consider the objections of consumer advocates who say the bill gives car dealers too much of an advantage over buyers.
Del. John Cosgrove of Chesapeake said the bill was prompted by recent court decisions that treated buyers like the owners of the car, even though sales contracts clearly state that dealers retain ownership until the financing is completed.
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Who let's it go off the lot????
I remember buying cars, and having to wait till financing was in place before I was allowed to drive off the lot. When/why did that change??
unclehomerr..
Avoid the problem
The dealer puts the customer in the car before financing is approved for one simple reason, to stop the customer from shopping. It takes them out of the market. If dealers were required to have financing approved for their customers before putting them "out on the street" it would solve this problem. Of course, that would mean a more competetive marketplace and the respective dealer would not like that. The result would be less impulse buying and the dealerships would have to rely on building value to be successful.
"until the financing is completed"
Don't hand over the keys until the financing is completed.