Unhappy with deal. Want to cancel Purchase Agreement.
We have been negotiating the purchase of a used class A motorhome over the last few days. The negotiation has progressed to the point where we have signed a Purchase Agreement and placed a down payment on the unit.
Even though the RV is 12 years old, we told the dealer up front we would have to finance part of the purchase price. We placed a deposit to hold the vehicle while the dealer reviewed our offer.
As it worked out, our offer was accepted. The sales rep then used our deposit as down payment money. He told us that used RVs usually finance at around 6%. We used this rate when crunching the numbers to see if the deal would work for us.
When the dealer's finance person shopped for financing, she was only able to get it at a 14.95% rate. This totally blows our number crunching out of the water, as we were expecting a much lower rate (and yes, we know most lenders won't even consider financing an RV this old).
The bottom line is, we have signed a Purchase Agreement, made a down payment, and applied for financing through the dealer. However, now we are very unhappy with the deal because of the large difference in the finance rate.
My question is, can the deal be canceled even though we signed a Purchase Agreement prior to learning about the poor financing rate, and if so, would the deposit/down payment money be lost?
Even though the RV is 12 years old, we told the dealer up front we would have to finance part of the purchase price. We placed a deposit to hold the vehicle while the dealer reviewed our offer.
As it worked out, our offer was accepted. The sales rep then used our deposit as down payment money. He told us that used RVs usually finance at around 6%. We used this rate when crunching the numbers to see if the deal would work for us.
When the dealer's finance person shopped for financing, she was only able to get it at a 14.95% rate. This totally blows our number crunching out of the water, as we were expecting a much lower rate (and yes, we know most lenders won't even consider financing an RV this old).
The bottom line is, we have signed a Purchase Agreement, made a down payment, and applied for financing through the dealer. However, now we are very unhappy with the deal because of the large difference in the finance rate.
My question is, can the deal be canceled even though we signed a Purchase Agreement prior to learning about the poor financing rate, and if so, would the deposit/down payment money be lost?
