Car Dealer Asked Me to Sign a Second Contract

How These Disputes Commonly Develop

A consumer signs a purchase agreement and financing contract at the dealership. The consumer takes delivery of the vehicle. Later — sometimes days, sometimes weeks — the dealer contacts the consumer and asks them to return to the dealership to sign a new or revised contract. The dealer may say the first contract had an error, that the lender required different terms, or that the financing was not approved as originally structured.

The differences between the first and second contracts may include a higher interest rate, a larger down payment, a longer loan term, different add-on products, or other changes. The consumer may not have been told in advance what the differences would be.

Facts That May Help the Firm Understand the Matter

• The terms in the first contract (interest rate, payment, loan term, add-ons)
• The terms in the second contract and how they differed
• What the dealer said about why a new contract was needed
• Whether the consumer was given time to review the second contract before signing
• Whether the consumer signed the second contract or refused
• Whether the consumer was threatened with repossession if they did not sign
• Whether a trade-in was involved and what happened to it
• Whether any down payment was made and whether it was returned
• The dates of each contract and the delivery date
• Whether there are any pending collection or repossession notices

Documents to Preserve

• Both the first and second contracts (or all versions signed)
• The buyer's order or purchase agreement
• Any written communications from the dealer about the contract change
• Text messages, emails, or voicemails from the dealer
• Trade-in documentation
• Down payment receipts
• Any repossession or collection notices
• The vehicle title or registration

Questions the Intake Should Answer

• What did the first contract say about the interest rate, payment, and loan term?
• What did the second contract say, and how did the terms differ?
• What reason did the dealer give for needing a new contract?
• Did the dealer say anything about repossession if you did not sign?
• Did you sign the second contract?
• What happened to your trade-in vehicle?
• Is there a pending court case, arbitration, or repossession proceeding?