Tips on Buying Cars: conditional contract / rider contract, conditional sales contracts, suitable lender

Question
Recently my girlfriend purchased a car; and amongst all the paperwork they were able to sneak a Rider to Install contract. In the contract it specifies that the main contract may be canceled if a third party cannot be found that will purchase the loan. The Rider Contract was accidently signed because the salesperson said this was insurance for the car; it was also signed a day before the cars main contract was drafted and signed. This happened in Chicago. I read somewhere that conditional contracts cannot be enforced. Is this true; what are my options?

Answer
Al,

Thanks for your question.

Conditional sales contracts are VERY difficult to be enforced, however most dealership do have them, and do get them signed, simply because the average consumer does not know any different.  The way that the law reads is this.  If you take delivery of a vehicle and sign all contracts, then you are the legal owner.  If the dealership can not find a suitable lender for the loan, then they have one option.  Their only option if you choose to NOT LET THEM BACK OUT OF THE CONTRACT, because they would not let you back out for any reason, is that you would make payments to them.  They would become the lienholder, not the bank that they were trying to sell the loan to.  Now, this is very difficult for the consumer.  The dealership can make it a pain in the butt to work with them.  If you are even one day late on the payment, they car repossess the vehicle, and have every right too!  You could fight them in court, but it would be very expensive and you may or may not win.

Hope this helps.  If you have any other questions don't hesitate to ask.

Thanks - JB