Sale of Auto Finance Contract

Question: Can a car dealership sell my account to a finance company in another state without my consent? Can they make me sign a new contract?

Answer: The dealer can sell the contract you have signed to a finance company without your consent. The dealer can insert the name of the finance company in the contract. Neither the dealer nor the finance company has any right to require you to sign a new contract. While many dealers have consumers sign documents stating that the dealer does not have to proceed with the transaction unless it can sell the contract to a finance company, this merely gives them a choice of proceeding or not proceeding, not changing the terms in any way. If they do not proceed they must return your tradein and down payment, without deduction. Illinois law gives them 21 days to pay off the tradein or cancel the transaction.

Categories: