Bottom Line
Do not sign any papers unless and until you have it in writing that financing is final. Remember, your ability to walk out the door and continue shopping elsewhere (i.e., by telling the dealer "see you later" and as you walk out the door advising him that he should call you when he knows whether he has final financing) leaves you in control. But once you sign on the dotted line, without a written acknowledgment from the dealer that financing is final, the dealer can yo-yo you.
The standard Motor Vehicle Contract of Sale used by auto dealers in Utah has a section which specifically allows the dealer to yo-yo the consumer. That section, adapted from Utah Code Ann. § 41-3-401, is reproduced below.
Do not accept verbal assurances. If the dealer tells you financing is final, make sure the dealer presents you with a Retail Instalment Contract and Security Agreement (a document which is 17" long) stating the terms of financing, and make sure the terms stated there are the terms to which you agree. But do not sign the Retail Instalment Contract and Security Agreement without first reviewing the Motor Vehicle Contract of Sale (Section B of the MVC is shown in the picture above).
If the Retail Instalment Contract and Security Agreement properly states the terms of your "best deal," take the Motor Vehicle Contract of Sale (a document which is 14" long) and make a large X through Section B of the contract, turn the contract on its side and write in block letters "FINANCING HAS BEEN APPROVED AND IS FINAL" in the margin. Sign your name next to this statement, and have the dealer's representative (i.e., the same person that signs on the signature line of the contract) also sign their name. See the picture below.
Only after the dealer has signed off on the Motor Vehicle Contract of Sale in this manner should you sign the Retail Instalment Contract and Security Agreement. If the dealer attempts to have you sign a "side" agreement acknowledging that financing is not final, refuse to do so.
If the dealer will not put it in writing that financing is final, then do not sign the Motor Vehicle Contract of Sale (i.e., the 14" long document) and do not sign the Retail Instalment Contract and Security Agreement (the 17" long document), and do no take delivery of the vehicle. Walk out the door and keep shopping.
If you do sign any documents, make sure that when you leave the dealership, you have copies of those documents. And do not keep those signed copies in the vehicle you purchased, but keep them in your home or some other safe, secure place.
IF IN DOUBT ON HOW TO PROCEED, CONTACT AN ATTORNEY. MANY ATTORNEYS OFFER A NO CHARGE INITIAL CONSULTATION OR A FLAT RATE INITIAL CONSULTATION. IT IS MUCH LESS EXPENSIVE TO USE AN ATTORNEY TO AVOID A BAD DEAL THAN TO USE AN ATTORNEY TO SUE ON A BAD DEAL.
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