A Connecticut Man Is Suing a Dealership for “Yo-Yo Financing”
Buying a car and searching for the best auto rates can be stressful. This is especially the case when a buyer isn’t sure the bank will approve them for a car loan. However, what’s worse is paying a down payment, driving home, and then later learning that you were never approved for the vehicle in the first place and that you have to return it to the dealership. This recently happened to one Connecticut man who became a victim of yo-yo financing after buying a used Kia Sorento.
This Connecticut dealership took back this man’s used Kia Sorento after 15 days
According to Jalopnik, Gilbert Rodriguez recently visited Chevrolet of Milford in search of a new car. Like any buyer, he wanted to find one of the best auto rates and even had a trade-in. He settled on a used Kia Sorento, and the dealership told him the lender approved a car loan for him to finance the vehicle. He paid $2,000 down and had his trade-in valued at $500.
However, things took a turn about ten days later. The dealership asked for a pay stub to prove that he could afford the used Kia Sorento. According to the report, it was about a week later that the dealership reached out again. This time, they said that the lender could not approve Gilbert for the SUV and that he would need to return it. He even tried to pay more money down, but they refused the offer.
From here, things became even worse for Gilbert. Chevrolet of Milford did refund his $2,000 down payment. However, they told him they had already sold his trade-in. Sadly, this left the man with no means of transportation. This first happened in September of 2023, but he is now suing. It is also alleged that the dealership submitted false documentation to the DMV to resell the used Kia Sorento.
Yo-yo financing can happen in a couple of ways. Sometimes, car dealers cancel the original agreement and force buyers to agree to higher interest rates. However, like in the case here with the used Kia Sorento, the dealer can take back the car, and you may or may not get the down payment. Yo-yo financing isn’t illegal, but buyers can potentially file a lawsuit.
