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What You Can Do if A New Mexico Vehicle Dealer Lies About Financing Your Vehicle

David Humphreys Sept. 1, 2021

If a Dealer Tells You to Bring the Car Back or Wants You to Sign New Papers, This Is a Giant Red Flag that You Are Being Cheated.

The First Thing to Do Is Make Sure You Have a Complete Set of The Paperwork from The Original Transaction. if You Did Not Get that Up Front, Go Back and Ask for A Full Copy of Everything You Signed at The Dealership.

Never, ever give the dealer back the papers you already signed. 

We always recommend to our clients that you arrange your own financing before going to a car dealership to buy either a new or used vehicle. Check with your local credit union on rates. You can check with the credit union loan officer about the price you are being asked to pay. At the dealership, you should negotiate the CASH PRICE for the vehicle and shop around to other dealers before buying. NEVER agree to tell the dealer what your monthly payment budget is, and NEVER agree to negotiate based on the MONTHLY PAYMENT amount. 

If you do allow the dealer to arrange financing for your purchase and/or  you have concerns about the dealer arranged financing, here are some things you should know about your rights when buying any vehicle in New Mexico. 

There Are Specific Rules that Apply to Protect You if A Dealer Claims Your Financing "fell Through" or Asks You to Make a Larger Down Payment or In Any Way Changes the Terms You Agreed Upon.

Contact us with your paperwork for a Free Case Review.


a) Tell you at the time you sign the sales paperwork that the sale is final unless financing is complete;

b) Refuse to void and nullify the contract if financing is not final within twenty days of the time you receive the vehicle, AND if so,

    1) the dealer must return your down payment, any deposit or other money you paid, and

    2) the dealer must return your trade-in vehicle or any other collateral you provided if financing is not final in 20 days. 

c) A dealer may not sell or remove your trade-in from the lot before financing is finalized and if they do so, the dealer MUST,  

     1) pay you the retail value of the trade-in vehicle or the agreed value of the trade-in itself, and

     2) if anything happens to cause damage or loss during this time period, the dealer is responsible, and

      3) the dealer must make monthly payments to the lender on the trade-in during the twenty day period to get financing approved.

d) The New or Used Vehicle Dealer May NOT charge you any costs associated with the refurbishing, repair or maintenance of the trade-in.

e) The sales agreement must contain a provision regarding "SPOT DELIVERY", such as "Buyer has the right to void this purchase if financing is not approved within 20 calendar days after delivery of vehicle. Buyer has the right to the return of any trade-in and all money paid by buyer, if buyer voids this contract under this paragraph. To exercise this right, buyer must return the vehicle to the dealer in the same condition as received (normal wear and tear excepted), within 48 hours of receipt of notice that financing was not approved. Dealer shall not charge any fees as long as the vehicle is returned as provided in this paragraph."

f) The dealer may not charge you any usage fee or mileage if you return the vehicle as provided by the rule set forth above.

g) The dealer is required to provide to you a copy of every signed purchase order or sales transaction document at the time of signing.

If the dealer lies or misrepresent your rights to walk away, the dealer is expressly liable to you for their false or misleading conduct. 

If you have questions about your rights, please contact us for a FREE CASE REVIEW.