Buying a car is already stressful enough without later realizing that the loan terms are not what you believed you had agreed to. Unfortunately, many people leave the dealership thinking they know what their monthly payment, interest rate, and total financing terms will be, only to later discover that the paperwork says something different. In some cases, this may be the result of confusion, but in others, it may be a sign that the dealership engaged in unlawful conduct. If your interest rate is higher than what you agreed to, continue reading and contact an experienced New Mexico consumer lawyer and car dealer fraud lawyer from Feferman, Warren & Mattison to learn more about your rights and how we can assist you. Here are some of the questions you may have:

Can a Dealer Change My Interest Rate After I Sign?

Simply put, a dealership cannot misrepresent your financing terms or trick you into agreeing to a higher interest rate than the one that was promised to you. That being said, auto financing can sometimes be complicated, especially when a dealer allows a consumer to take a vehicle home before financing has been fully approved. Some of the most important questions in this situation are as follows:

  • What interest rate was listed in the documents you signed?
  • Did the dealer verbally promise you a lower rate?
  • Were you told financing was final when it was not?
  • Did the dealership ask you to come back and sign new paperwork?
  • Were the new terms clearly explained to you?

What Are Signs That Something May Be Wrong?

There are several warning signs that may indicate the dealership did not handle your financing properly. For example, you may have agreed to one monthly payment at the dealership, only to later receive loan documents showing a higher payment, a higher interest rate, or a longer loan term than you expected. Some red flags can include the following:

  • The interest rate is higher than what the salesperson or finance manager promised.
  • Your monthly payment increased after you already took the vehicle home.
  • The dealer claims your original financing “fell through” and pressures you to sign a new contract.
  • You were not given copies of all documents at the time of sale.
  • The final contract includes fees or loan terms that were never explained.
  • You were told to “just sign” because the change was not important.

What Should I Do if My Loan Terms Are Different?

If your interest rate is higher than what you agreed to, the first thing you should do is gather every document you received from the dealership and lender. This includes the retail installment contract, buyer’s order, financing disclosures, text messages, emails, advertisements, and any written notes regarding the rate or payment you were promised. From there, you should reach out to an attorney who can assess the circumstances of your situation and begin crafting a strategy on your behalf to hold the dealer accountable.

If you have additional questions or believe you’re a victim of fraud, please don’t hesitate to contact a knowledgeable and experienced attorney here at Feferman, Warren & Mattison for comprehensive representation today.