No, no, no, no, no.
Listen, I sell cars. All of the answers posted here are incorrect to a certain extent. They don’t apply to your situation YET. The posters aren’t purposefully misleading you but this is a situation that will only be understood by people who are in the business.
All that has happened is that ONE bank turned you down. A bank is required to send a customer a written decline notice and reason for the decline. Dealerships use dozens of banks. We regularly submit the same loan to multiple banks in order to get the best offered rate/approval. Say I submit the loan to five banks. Four banks decline the loan, one approves the loan. You and your cosigner would receive 4 statements of decline (refusal of credit) from the separate banks but your loan would still be intact from the approved bank.
You aren’t affected as long as the dealership gets the loan approved from one bank.
Before you are confused any further, Call the dealership and ask to talk to the F&I manager. Ask if they have an approval for your loan. There’s a chance that everything is fine and your deal is approved. If they don’t have an approval, ask them if they expect to get one, will the rate be higher? Will the loan require more money down? Ask the specifics of the approval.
Don’t get me wrong, things could get tricky and annoying for you if you have in fact been declined by ALL of the banks. But the letter you received doesn’t mean that this happened. You could very well be 100% fine and your deal already funded (original contract that you signed is approved). You shouldn’t get all worked up until you know what’s going on. Call the Dealer, demand to know what’s going on. It’s against the law for us to lie about things like this.
I hope this helps. Good luck
If they in fact couldn’t get financing, then post here so that we can advise you on the best ways to proceed (get your own financing, return the vehicle, etc.)