Laws will vary from state-to-state on this situation. There has been some good advice and factual information posted in this thread already, but being that I work at a car dealership as a salesman for the last 10+ years, I feel compelled to chime in my $0.02.
I'm in PA, so this is how it should be handled according to our laws.
You can sign all the paperwork you want and you are not an owner...yet. You become the registered owner of said vehicle when you take delivery of it and drive it of the dealer lot with YOUR registration on it (new tag or transfer). If you don't leave the lot, it's not your car. If you leave the lot, get a block away and turn around and say that you don't want it anymore, technically, that car is yours. Now, the dealer may try to convince you that you are making the right decision to keep the sale together, but if they can't, they should just shred the contracts, and move on and save any bad publicity. Is this one car deal really worth it for the consumer to run around saying how "XYZ Dealer" screwed me into this car? Nope, definitely not.
Now for the "extras" like life insurance, disability, etch, GAP insurance, extended service contracts (warranties), maintenance programs, wheel & tires programs and anything else that the finance department will offer you are ALL OPTIONAL products that are up to the consumer to decide if you want to purchase, NOT the bank. If the finance manager told you that the bank requires that you purchase that stuff, they are in violation of at least one in not more laws that are out there to protect consumers and actually dealerships as well.
There is a form that is required to be signed that states that any additional product is optional and not required to secure financing.
Here's a link:
http://www.paadps.com/installmentsal...form-1013.aspx
Here's a good (yet tragic) example of why dealerships offer you these products. This happened to my dealership circa 2003-2004. A younger guy, about 22-23 years old that I used to work with at a pizza shop delivering pizza with bought a used Mitsubishi Eclipse. I don't remember all the details of the transaction, but I do know that he signed a form stating that he was offered life insurance along with other products and declined them. Six months following his purchase, he was stuck by a vehicle driving on remote road where street racing occurred frequently. He was the starting flagger and had his back turned. A vehicle came around a turn and struck him, ending his short life. Now the family had this vehicle and the lawyer handling the estate had his family contact us about the details of his purchase and if we had proof that we offered him life insurance. The reason he did this is because if we did not at least offer it to him, there is a very good chance that the dealership would be on the hook for the remainder of the loan.
Now that was an extreme example, but it could also come into play with GAP insurance or extended warranties. For example, you trade in a car and are upside down by $5k (national avg is $4-5K), and you drive your new car home and park it in front of your house. A drunk driver flies down your street and slams into your car, totaling it. The driver's insurance company is not going to pay off the entire amount of the loan. They will pay for what the vehicle is worth depending on miles, year, etc. Say it's a new FRS 6MT so they will give you MSRP plus taxes usually if it's extremely new (bet case scenario). If you bought the car with $0 down, your loan is probably around $30-31k. Guess who is stuck with that balance? Sure, you can try suing the driver or his insurance company, but good luck with that. Wouldn't you like to know that GAP insurance was available that would cover you in a situation like this?
*Disclaimer* I am a huge fan of GAP insurance because it has personally saved me $4k in 2005 when I totaled my 2005 Tacoma with 4500 miles on it. I WILL NOT buy or lease a car without it unless I put a large sum of money down. (then you don't need it, but it doesn't make sense to put a large sum down on a lease unless you want a ridiculously low payment)
All these extra products do provide value to different customers (as long as the dealers don't try to rape and pillage on the pricing of them). Some of them are more valuable than others. It is up to the consumer to decide which of these products they see value in and make the decision to purchase it on their own and NOT be FORCED into buying to "GET APPROVED".
Dealers that try to force these products on you and lie to get you to buy them piss me off to no end. All it does is make a quick buck for the dealership and that's it. Most of the time, the consumer will realize that they were taken advantage of and will spread the word very quickly and loudly about their shady practices, hurting that dealer in the long run. I am so glad that my dealership has a full disclosure policy that EVERYTHING is put in back and white in front of the customer for them to decide what they want and do not want.
Does our finance department try to sell you on the value of these products? Yes, of course they do. It's their job, but they do it honestly and your options are laid out in front of you. I've noticed that in my area, more dealers are moving towards this approach, which is a good thing. There are still a few that will break out the Sharpie and scribble down numbers on a blank sheet of paper, but won't let you take their quote with you if you leave.
/RANT
If they give you sh*t, threaten with the Attorney General and/or BBB. You should also be able to get your $100 back too, but that will be more dependent on your state laws. In PA, you could.
Ruskymx