This is a combination of two questions that have come up in connection with buying a new car. The first is this:
The dealer submitted my loan to the bank. Now the bank has refused credit. The dealer wants me to come in and sign another contract with another lender at a higher interest rate. Since the bank turned me down do I now have a free car?
Sorry, there’s no such thing as a free lunch or a free car. Buried in that long contract you signed with the dealer is probably a provision that says that if the original bank denies you a loan you agree to accept financing with any bank that will approve you. Implicit in this are the words “even if the interest rate is 19.99% or more.” If there isn’t a clause like that then you’ll have to return the car unless you can scrape up the cash to pay the purchase price.
The second question is:
Can we give back a car if we can’t afford it? My husband just bought a new car and hasn’t gotten the title yet. He lost his job. Can we just give back the car since we never got title?
Again, the answer is “no.” This scenario raises some question about why you haven’t gotten title. The dealer is required to submit your paperwork within ten days to the state. The fact that you don’t have title probably means the dealer hasn’t done this. Shady dealers will delay submitting paperwork because they don’t have to pay the sales tax until they do. But that aside, whether you got title or not you undoubtedly signed another long contract that obligates you to pay for the car. Your remedy for not getting title is to force the dealer to submit the paperwork, not get out of the contract.