Keep in mind, of course, that the "fine print" the dealership and lender are protected under, also gives the buyer an "out". ANY reputable dealership, or any reputable establishment for that matter, is not going to issue out pre-approved loans unless they are certain the buyer can make the payments. The lender issues minimum qualification criteria that a borrower MUST meet in order to qualify for a specific dollar amount. As long as the dealership follows the pre-set guidelines, and doesn't try to sell a 2006 Escalade to an 18 yo high school drop-out working part time as the fry-cook at Burger King, the lender and dealership can hash out the little details. There is tremendous depreciation to the re-sale value of a new vehicle the minute it leaves the car lot. Even if returned a week later, it must be sold as "used" or "pre-owned", costing thousands of $$$ to the dealership. Remember, the finance department does not work on commission, so there is no vested interest in getting your loan approved (usually).
Let me get to the point and throw in my two cents. Your friend needs to honor the contract's fine print, like the dealership said. It was a signed contract between the dealership and the borrower. Once the lender denied the loan, the contract was null and void and your friend was under NO obligation to enter into another contract. They can get that loan approved. If anyone has the ability to squeeze blood from a turnip, its dealerships, and auto/home lenders. The dealership is the ONLY one that stands to lose money. Your friend can always just buy a different Sport Trac from another dealership, which probably isn't such a bad idea. Instead of a higher interest rate or less months for pay-off, have the dealership knock off about $3,000 - $4,500 in BS charges, commissions, fees, etc. thus bringing the total amount financed down to a level at which your friend may qualify. Well, the carpul-tunul has kicked in and told me to get the hell off my soap box. Best of luck with the dealershit(not a typo).:angry:
