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Here is a little bit background: I am currently an opt(F-1) student working at a company as a software developer. My company is actively working with a law firm to get me a work visa. A couple weeks ago I went to a BMW dealership and got a brand new mini cooper. The dealer checked my credit and because I have a >700 FICO score, they offered me a 0-interest loan. I was happy about that. I also put $2000 cash as down payment. They made me sign all the paperwork and let me take the car home.

A week after they called me saying BMW financial services didn't approve my loan because of my student visa, which they didn't even mention to me at all when I signed the paperwork. I have gave them all the documents I can think of to prove that I am a working professional and have annual income. Basically I'll have to find somebody who is a citizen or a green card holder to buy the car for me, and I don't like this idea at all.

So my questions are: 1. If I give the car back and don't buy it, would they refund my down payment? I put >100 miles on it already, would they still be able to sell it as a new car?

  1. If I don't give the car back, what is the likelihood of me getting my loan approved without having to have somebody else buy the car for me, at this point?

  2. Since I have signed all the paperwork, are there potentially legal rights that I can use to help me get the loan?

Thank you.

  • How many days had passed since the paperwork was initially signed, before they informed you that the financing was turned down? – NL - Apologize to Monica May 26 '16 at 15:32
  • What city/state is the dealer located in? – NL - Apologize to Monica May 26 '16 at 15:33
  • @NathanL There was one week between I signed the paperwork and they told me the financing was turned down. The dealer is in Denver, Colorado. Thanks. – Glenna May 26 '16 at 15:40
  • I'll look at the laws in Colorado and maybe update my answer later today. – NL - Apologize to Monica May 26 '16 at 15:43
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Most states do have a cooling-off period where the buyer can rescind the purchase as well as a legally allowed limit to how long the dealer has to secure financing when they buyer has opted for dealer-financing. If the dealer did inform you during the allowed window, they will refund your down payment minus mileage fees at a state set cost per mile that you used the car. If the dealer did not inform you during the allowed window, depending on the state, they may have to refund the entire down payment. In any case, the problem is that the bank does not want to offer you the loan, you can try to negotiate and have the dealer use what leverage they have to coerce the bank, but there is probably no way for you to force the loan through. Alternatively you can seek your own financing from your own bank or credit union, which will likely allow the sale to go through.

UPDATE - Colorado laws allow the dealer 10 days to inform you that they cannot obtain financing on the terms agreed upon in the original contract. That contract contained wording related to the mileage fees. You can find that info on page 8 of the linked PDF under the heading D. USAGE FEE AND MILEAGE CHARGE

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