Consumer Law Issues: Dealership Never Turned in Paperwork for Loan Funding

My question involves a consumer law issue in the State of: Virginia

Hi everyone...

Last August we purchased a used vehicle about 3 hours away. We had our own financing. Everything went smooth at the dealership. They called in the financing. The Bank sent over the approval and paperwork to sign. We all signed it. We paid our downpayment, tax, title, processing, etc. Drove off. This was not a spot sale. The financing was secured. All the dealership had to do was send in the signed paperwork and they would have received payment within 24 hours electronically.

I knew our first payment was due this month, but had not received any bill from the bank. So, I called. They never funded the loan because the dealership never sent in the paperwork. And now the financing is expired. I called the dealership. Whoever handled the paperwork just never sent it in. It just sat in a folder. They are now scrambling to work with the Bank to see if the Bank will honor the now 2.5 month old offer. (They had 2 weeks to send it in).

As I wait for the call back from the dealer, what are my rights here? Can they insist on returning the car if the Bank cannot go back and activate the funding? Can they insist that we apply for more financing? We are in a home refi process and are told not to apply for anymore credit anywhere, so we cannot do that. We gave them everything they needed to get their money, they just failed to collect.

Any help or suggestions would be greatly appreciated. Now the vehicle has more miles on it, and we had work done it. Can we recoup this if they can take the car back?

Thanks!
~Frustrated Virginian

Consumer Law Issues: Dealership Never Turned in Paperwork for Loan Funding