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Posted on 9/16/14 at 1:25 pm to Austin Cajun
Can we get a dealership and credit union name?
Just in case I want to "not finance" a new truck
Just in case I want to "not finance" a new truck
Posted on 9/16/14 at 1:32 pm to Austin Cajun
My credit union cuts me a check that hand over over to the dealership, whether new or used. I get the truck, the dealership cashes the check, and then I make payments on the agreed terms we set out before they cut the check. Seems pretty fricking simple. Did you not give the dealership a bank check?
Posted on 9/16/14 at 1:33 pm to Austin Cajun
quote:
I have a bank I deal with on a regular basis ready to go at an even better interest rate and they are willing to give me gap insurance for free.
Nor do I believe you have an 800 credit score.
Why bother financing at the dealership in the first place if you're such a regular at this bank?
No, you didn't just get a free truck you cannot afford.
Posted on 9/16/14 at 1:34 pm to bubbz
quote:
The only loophole he has is if the CU bounces the contract back and the F&I manager can't find other financing. At that time they would request for the vehicle to be returned.
This is correct. Dealers do this all the time where they have you sign all the paperwork and send you home with the vehicle thinking that you have bought it, all the while they are still working on getting the financing complete.
In reality, the deal is not "sold" until they find a financier to buy the loan. If they can not get the credit union (or alternate bank) to give the loan, and you do not agree to the credit union's proposed terms, then you will have to take the vehicle back.
This post was edited on 9/16/14 at 1:36 pm
Posted on 9/16/14 at 1:35 pm to Gaston
If the CU has an indirect relationship with the dealership the borrower would never see the check. The dealership would send the paperwork to the dealer and the CU would fund the loan.
Posted on 9/16/14 at 1:35 pm to mylsuhat
Wait, so you have a signed agreement for financing and they changed their mind?
That's bullshite.
Return their truck and get your trade back if they don't figure it out.
That's bullshite.
Return their truck and get your trade back if they don't figure it out.
This post was edited on 9/16/14 at 1:39 pm
Posted on 9/16/14 at 1:36 pm to AnonymousTiger
Like somebody else stated, it usually happens on a weekend or after hours. If you have good credit, etc. and are the dealer is shopping out the loan there is a very slim chance it will ever bounce.
Posted on 9/16/14 at 1:38 pm to TigerDeBaiter
That's right. They wouldn't send you home with it if they didn't think they would find some bank somewhere to do the financing. But it does sometime happen that they can not get a bank to do it and so the poor "buyer" has to return the vehicle.
This post was edited on 9/16/14 at 1:39 pm
Posted on 9/16/14 at 1:41 pm to LNCHBOX
quote:
All this. But I think he's just waiting for a loop hole. Paying less for miles I put on it would never cross my mind. Who even thinks of that?
I didn't read it as wanting to pay less. I read it as being in a position where 5K miles later, if his choices are to modify financing or turn in the car, he'd be more likely to turn in the car.
Posted on 9/16/14 at 1:42 pm to LSUnGA
I could see that with a local bank, but my credit union only cares that there is actually a vehicle worth x on the other end of this deal. They put all the vehicle information in their records and actually run value on the car themselves (used). They still offered gap insurance even though I'm sure it's under right now.
Posted on 9/16/14 at 1:43 pm to member12
quote:
Wait, so you have a signed agreement for financing and they changed their mind? That's bullshite.
No. He signed some preliminary paperwork to get him in the truck. The dealer should have also made him sign something stating that if they cannot find him financing then he must return the truck. This is called a spot delivery.
Remember, he just walked in the dealership and said he makes X amount and has a job with whomever. If it's after hours or a weekend the lender has no way to verify anything. There is no way to fully process a loan when you do a spot delivery.
Eta. And whoever said he technically owns the truck is mistaken. You don't own it until you have the title in hand.
This post was edited on 9/16/14 at 1:45 pm
Posted on 9/16/14 at 1:44 pm to moneyg
quote:
If it takes them 3 months to get back to me and I have 5k miles on the truck, I'm not willing to finance what I was for a truck that has 5k miles on it
I think you're giving him a lot of benefit of doubt. Because to me, that sentence says if he won't pay a new car price for the new car he had for 3 months because he put the miles on it.
To me, it would be equivalent to wanting to pay less for a car that offered 90 days no payment. When the payments start, the car isn't "new" anymore, so it's basically the exact same thing.
Posted on 9/16/14 at 1:44 pm to mouton
quote:
The finance manager is shopping around through other banks and doesn't have the deal approved at the original terms yet. That is why he is not calling back.
is this common? everytime I have financed I signed the papers with the interest rates and all.
Why would they do this? What about insurance on the vehicle?
Posted on 9/16/14 at 1:46 pm to TigerDeBaiter
quote:
Nor do I believe you have an 800 credit score.
Why bother financing at the dealership in the first place if you're such a regular at this bank?
No, you didn't just get a free truck you cannot afford.
I honestly don't care if you believe me or not. However, I will answer your question since you don't know how the system works.
When you buy a vehicle, they often have incentives for using dealer financing. It this case, there was a significant rebate they offered for using dealer financing.
I will always take advantage of these rebates to get the OTD price as low as I can. Once the deal is done, I immediately go to my credit union and bank to see if I can get a better interest rate, which I always do.
So I got the best price on the truck that I could along with the best interest rate available to me. I've come out better by doing this on quite a few occasions.
If you had a good credit score and a relationship with a bank, you'd already know this.
Posted on 9/16/14 at 1:51 pm to Topwater Trout
quote:
is this common? everytime I have financed I signed the papers with the interest rates and all.
Yes it's common. Especially when the first loan falls through.
quote:
Why would they do this? What about insurance on the vehicle?
Bc the original lender didn't do the deal for whatever reason. Verification of employment revealed that the borrower actually doesn't make as much as they claimed for example.
As for insurance, the dealer has insurance for every unit they own. Once it's actually sold then insurance is the responsibility of the "owner".
Posted on 9/16/14 at 1:51 pm to Topwater Trout
quote:
is this common? everytime I have financed I signed the papers with the interest rates and all.
Why would they do this?
A rate you sign with the dealer and the rate the bank is getting is not always the same thing. A bank might offer an interest rate of 5%, but the dealer might present it to you at 7%. They keep the difference themselves. This another reason why you might be able to negotiate interest.
The same can be done in a different order. I.e. the dealer knows your credit score and can predict what a bank might offer you in interest. They will then add on top of this and present it to you on a spot delivery. If the bank rate comes in lower, they win the extra amount they presented and you signed. If the bank comes in higher, they tell you to come back and agree to the new higher rate.
Posted on 9/16/14 at 1:54 pm to Austin Cajun
are you not allowed to prepay on the loan they offered you? if you pay more per month than what is required under the loan they offered you then you can pay it off in the same amount of time that you would have liked and still pay the same interest amount.
Posted on 9/16/14 at 2:00 pm to Hermit Crab
I just looked through the paper work, there's nothing about a Spot Delivery.
I signed the papers agreeing to a specific price, term, and interest rate. Everything is clearly defined.
I signed the papers agreeing to a specific price, term, and interest rate. Everything is clearly defined.
Posted on 9/16/14 at 2:00 pm to Hermit Crab
No one has bought the contract yet, so there is no one to pay. Unless the dealer takes it in house, which I doubt they are willing to do.
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