evidnetly this clause is used ina scammy bait and switch way by low end car dealers.
You come in to buy a 2001 bmw. I say, hey, I’m going to get you into this car, low payment, no worries, 5.9 percent interest. You give me your trade in, 3,000 down, you drive away. two days later i call you i say, i am so sorry my friend, your credit app was seen as worse than i thought by the bank. They want to charge you 12.9 percent interest. but the good news it only raises your payment by X. the car’s great, right? so you come in and we’ll redo the contract.
the dealers sell the cars knowing they can’t get financing as promised, just to move the deal closer to closing. it’s a used car anyway so they don’t care if the person drives it a few days.
