If the dealer lets you take the car home but the loan is not approved can you back out of the deal?

Absolutely. This is a technique dealers use to get you emotionally attached to the car. Take it home, show your friends. Then they tell you the loan is turned down, but they can get you approved at a higher rate. They think that since you already showed everyone your new car, you'll pay the higher rate.

Don't fall for it. Be prepared to bring the car back and go shop for a new deal.

Find out what car dealers don't want you to know at www.dealertricks.com