What does Assigned without recourse mean?

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Latest post 03-10-2006 5:00 PM by Calean007. 9 replies.
  • 03-08-2006 9:40 PM

    Question [=?] What does Assigned without recourse mean?

    I have a friend who has the bill of sale, the financing terms all signed by both him and the dealership. They are now trying, days after the deal was done, to take back the vehicle. I looked at the bottom of the contract that shows all the charges, taxes etc and saw "Assigned without recourse" checked.

    Does this mean that the dealership cannot take any legal recourse on this contract and that they have to honor the original terms or not? Thanks!
  • 03-09-2006 7:40 AM In reply to

    re: What does Assigned without recourse mean?

    That probably means the dealer assigned the loan to a lender and the lender can't come back against the dealer.

    Show your friend the following website:

    http://www.carbuyingtips.com/scams.htm
    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 03-09-2006 4:36 PM In reply to

    Feedback [*=*] re: What does Assigned without recourse mean?

    We need a little more information. Why is the dealer trying to take back the vehicle???? That almost never happens. The "Assigned without recourse" deals with the dealerships and lenders agreement. The dealer has to deliver a clear title to the lender in addition to other stipulations. If the dealer does not comply and the purchaser defaults the lender can go after the dealer for monetary restitution. I am trying to explain it in laymans terms because the legal definition is filled with words normal people would never use. It "may" "might' "could" be that the dealer could not comply with its agreement with the assigned lender and is trying to recover the vehicle. Or it could be for various other reasons that have nothing to do with that clause. What reason has the dealer given for taking back the vehicle?
  • 03-09-2006 6:20 PM In reply to

    re: What does Assigned without recourse mean?

    Basically, they are saying that the financing fell through. However, I saw the documents and they clearly show the APR, number of payments, the amount financed and has the signature of the dealership and my friends signature on it with the box checked, assigned without recourse. He did this deal on March 1st, signed all these papers and gave him the keys. Now days later, they are claiming the financing didn't go through. I smell BS.
  • 03-09-2006 6:23 PM In reply to

    re: What does Assigned without recourse mean?

    Well, there's usually a lot of fine print about this in terms of financing falling through (though most of the time it's the buyer who's trying to return it because financing falls through the dealer refuses to accept return of the car).

    Your friend should take his paperwork to a local attorney.
  • 03-09-2006 11:54 PM In reply to

    re: What does Assigned without recourse mean?

    If they are saying the financing fell through then the "assigned without recourse" statement has no bearing on the issue. Your friend basically has three options.
    1) Obtain his own financing
    2) Return the vehicle
    3) Obtain advice and representation from an attorney to fight it. If your friend does not keep an attorney on retainer and has to hire one, this option could cost a lot more than it is worth.

    The important lesson here is that you never walk into a dealership and purchase a vehicle unless you are paying cash or have a pre-approved bank draft.

    One exception is if it is a new car, never a used car, that you know without a doubt that your credit score will qualify you for the loan offered by the dealership. If you do this you need to insert a clause into the contract that the deal is only complete upon financing being secured by the lender, not the dealer. Part of the clause needs to specify that you will only take possession of the vehicle until the loan is secured and the deal is complete. Make sure that a member of management and you both sign specifically for acceptance of this clause.

    You have to protect yourself, unscrupulous dealers and salesmen know all the tricks and how to get around laws and regulations that are supposed to protect the customer. It's not right, but it is a fact of life that everybody needs to deal with.
  • 03-10-2006 4:27 PM In reply to

    re: What does Assigned without recourse mean?

    Well, the issue was the financing was secured. Why in the world would they have him and the dealership sign papers, showing an APR, number of payments, amount to be financed? In ever situation whether it be new or used car buying, unless the loan has been secured, they don't have you sign those forms. A dealership has to get financing from a bank, much life if I went to a bank today to get a car loan. The dealership never finances the deal themselves with their money.

    How this all ended was that he took the vehicle back and got his down payment money returned to him. However the facts are his credit score was pulled, they submitted that to the competing banks, one of the banks gave the terms, the dealership and bank agreed on it, and a week later the dealership wants to back out of the deal. What I did find out is that they told him that he signed a form saying if the financing fell through, he would have to return the vehicle. O.k., but how could the financing fall through if they had him sign all these papers, especially the financing ones, if they didn't already have a lender on the deal? The answer is, the financing never fell through as they alleged in my opinion and that they were trying to renegotiate the deal, minus the warranty that he originally financed, because they said they were losing money on the deal. In my opinion, you have a contract, signed by both parties, and cannot be changed unless in writing as it clearly states, so basically my friend is an idiot for taking bac a truck that is legally his...wonderful..

    Thank you for your answers though...
  • 03-10-2006 4:36 PM In reply to

    re: What does Assigned without recourse mean?

    OK, your friend took the truck back AND GOT HIS MONEY BACK.

    He needs to buy a lottery ticket.

    Getting money back from a car dealer almost never happens.

    Next time he goes vehicle shopping he should make sure he's a lot better educated and reads the contract very carefully.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • 03-10-2006 5:00 PM In reply to

    re: What does Assigned without recourse mean?

    You have no idea how daft sometimes he can be. I think he allowed the dealership to scare him when they said he'd committed grand theft auto. If that were the case, they had his DL number and address. They would have long since sent the paddy wagon around his home...


    Friends...gotta love em...
  • 03-11-2006 12:28 AM In reply to

    re: What does Assigned without recourse mean?

    You said:

    "Well, the issue was the financing was secured. Why in the world would they have him and the dealership sign papers, showing an APR, number of payments, amount to be financed? In ever situation whether it be new or used car buying, unless the loan has been secured, they don't have you sign those forms. A dealership has to get financing from a bank, much life if I went to a bank today to get a car loan. The dealership never finances the deal themselves with their money."

    This is my opinion here; The financing was not secured. In the contract or other paperwork that your friend signed was a statement in legalese that said if the financig was not approved by the dealers lender that the contract was null & void. The only possible options at this point is for your friend to offer to pay cash or secure his own financing. And I say possible because the dealership may be making money from the financing through the loan being assigned to a lender they have an agreement with. So the dealership makes money off the sale and the financing. So the dealer may have voided the deal since they would make no money off the financing. Yes it is wrong and depending on the state illegal for the dealer to do this but succeeding in proving that the dealership did this is highly unlikely.

    You and your friend need to look at the bright side. The dealer gave him his downpayment back, that is a extremely rare occurance. You and your friend need to say "Thank God" Go out for a nice dinner, buy a couple of Lotto tickets and then go search for another truck. There are lots of them out there!

    Good Luck and Best Wishes

    BTW Are you British? Americans usually do not use the word "Daft". If you are British you will understand that I am pretty much "Knackered" and am headed to bed.
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