So, I know I haven't been here long, or around much for that matter, but I fell in love with this car and now I'm losing it.

The dealership called me and said the bank won't give me a loan. A month AFTER I've had the car. The bank thinks I'm too "high risk" because I'm young, but I have the payment in the bank waiting to be sent out right now.

I was told I either need my dad to help me bring more money into the deal or I have to take the car back for something cheaper. But I refuse to get something cheaper, so I'm just going to get my down payment back and never deal with this dealership again.

 

The bank is just full of ****, everything should be "final" and CANNOT be change. They can refuse your loan in the first place, but they didnt and probably gave you a high *** interest rate(if what u've said is true)

Now I guess its time to re-read your Sales and Loan contract. if u see something funny, bring it to a lawyer.

Whats the bank name ?

 

Some dealerships use a "Fast-track" way of financing. THEY approve you, sell you the car, and give you financing terms. They then go to the bank to underwrite it all after you have left happily with the car. If they find a bank that will underwrite at a lower rate than what you signed up for, they get a kick-back and just made a little more money off you. (ie you signed up for 7.9% and they get you into a loan program for 6.9%, they will get paid reverse points on the loan and you still pay the 7.9% to the bank. You will never see this because it is all behind the scenes.) Because your risk determines the interest rate in many cases, they try to do a good job of assessing this.

What probably happened in your case is that they underestimated your risk. They then have to pay points to the bank to "buy down" the interest rate to what you signed up for. (ie you signed for 5.9% and the bank will only approve you at 6.9%. The dealer pays points to get it done, and you should never know about it.)

Chances are, they have spent the last month trying to get a loan program for you that won't cost them anything and are realizing that they are going to have to pay points. Review your sales and financing contracts word for word. If there is a clause in there that gives them the right to cancel, you may be screwed.

 

Dealers will make deals before they have any confirmation from the bank. When I bought my Evo I demanded a much lower interest rate than is ever available on the car or I said I'd walk. They let me take the car without knowing if they could really get me that rate. It's a little bit different situation but I'm guessing the dealer realized they would have to fork over some money to get the rates anywhere near what the contract states. Out of curiosity what's the interest rate on your contract Mandy?

 

This is exactly why I talk to my Credit Union prior to purchasing a car. When I get to the dealership, I already know if I am approved or not, and I know that I got the best APR possible.

 

yeah they hate the pre-approved person they cant make any on the "back end" then

 

Why not just get your father or someone to "co-sign" for the loan, thereby guaranteeing that if you default on it, the bank still gets paid. This doesn't do much for your credit, since the guarantor is where the buck stops, but at least it keeps you in the 8.

 

Let me get this straight. The dealership delivered a car to you already. You've signed a purchase agreement and a finance contract. Is this right?

 

It is most likely a BS ploy by the dealership. You definitely need to read the contact top to bottom. Or have a contract lawyer tell you what it says, since I know some of it is written in language that intentionally causes headaches for the layperson.

What did they give you for payment options? You must have recieved a bill for your 1st payment - who is it payable to?

If they do manage to pull this BS off - be sure to let us know, or at least post the dealership in the Good/Bad Guy section. Good luck.

 

Talk about timing: http://forums.vwvortex.com/zerothread?id=2738687 <---- Read this!

This has become the latest dealer scam.

If you have Purchase & Sales agreement, and a finance contract, this is not your problem. It's theirs. They accepted your risk. They have to deal with it. If you've made payments on the car, it's yours. Heck, it's registered in your name, right? (They probably still retain the title on the car trying to find a bank to sign for it. However, that title is yours or whoever finanaces the car... not theirs unless they finance it themselves. You have a signed P&S agreement and finanace contract I would hope.)

1) Get in touch with a lawyer asap on this one and have them look over the paperwork. (Do NOT tell the dealer that you agree/disagree or anything else before you talk to the lawyer).

2) If the lawyer finds that you have signed a binding contract and the dealer is on the hook for it, then they can go pound sand. Then, contact your Atty General and file a formal complaint that the dealer is trying to scam you out of more money AFTER the sale was completed. They love things like that.

3) If the lawyer finds they are legally in the right. You're screwed... but I do not feel this to be the case. (like a 1 out of 100 shot).

--kC

 

Another thought:

You should make sure that all correspondence occurs in writing from this point forward. Do not speak to them on the phone. Insist on recieving all correspondence on letterhead in the mail, signed by dealership management. Reply only in the same manner and use certified mail for everything you send. This will greatly help your attorney if you use one, and you will be able to send a copy of the entire correspondence to MONA. They should see this.

 

This is a good point. Check the contracts that you signed. If none of them state that the agreement is contingent on final approval of a financial institution then have your lawyer write them a nice letter saying that you are living up to your side of the contract and expect them to live up to theirs.

Unfortunately, if there is contingency language in the agreement, there is little you can do.

Either way, check with a lawyer before surrendering the car.

 

put the car into a storage unit and start billing them...

 

Is this sort of language common?

I think that this gal is getting scammed.

 

If they let you have a car, issued you a registration (ownership), then you own the car.

If there are no other conditions involved, then you keep the car.

Let yourself be taken to court. The worse case scenario is you give the car back....

The best case scenario, you got a car for your down payment.

Under no circumstances are you to go get a loan, provide a cosigner, cut off your arm or leg, etc....

 

I had a stupid situation with buying mine. I had a preapproval from the credit union which stated my loan term and interest rate and they credit union said they would loan me up to $50,000 on a car with my credit. Well, I didn't borrow anything near that. I took in my preapproval, filled out the papers and left with the car. A week later I get a phone call that my loan was denied by some loan officer at the credit union and that I would need to put down more money at the dealership, which was wrong because I had official paperwork stating they guaranteed me a loan already and how much money I could have. To make a long story short, the loan officer that my purchase papers stopped at first needed a managers approval, and the first person knew I was already preapproved. Apparently the manager did not, or something, so he refused to sign it and returned the papers back to the first person. She then sent it on to the head of the loan department telling him I already had a preapproved loan and had just been waiting for my car to arrive to actually start it and for the exact amount I had actually ended up borrowing. The head guy signed off on it no problem.

You might just have some idiot in the middle that isn't signing off on it.

 

As others have stated reread everything as annoying as it may be reread all your damn paperwork. This to me sounds like B.S... but did you lease or buy? If lease I can maybe see them doing sumthing like this but if you bought your baby straight out.. then someone somewhere f'ed up and they are hoping your a sap and will play along. Just my two cents.. oh also the rest of these guys have great suggestions definatly follow them!!! Oh also have you told your parents yet?? who knows maybe your dad or mom has a lawyer friend who can look through your paper work for free?!?!

 

The sales department will do anything to roll a car. They let you take the car without getting prior approval from a financial institution in hopes they could find someone to fund the loan. They shot gunned your paperwork to several banks and none would approve the loan. Look at your paperwork carefully. See if the name of a financial institution is on the contract with the monthly payment amount. I would guess that is not the case. Unfortunatley, you will have to give your car. I've always hated this dealership practice. Gets peoples hopes up then bursts the balloon.

 

You will probably get to drive it for free....so drag it out as long as possible.

Should be able to keep it for a few months.....then let them have it back...and go to another dealer and get a new one...

 

Just get your Dad to sign for it.

If he won't, you are too high of a risk.

Most auto loans have the reclaimation admendment attached. If you can not get financed you do not get the car.

You will also own user fees. So don't drag it out... you will loose your down payment.

Nothing out of the ordinary in your case.

Get dad to sign for it.

 

I really wonder what happens if someone buys a car like this then moves to someplace else, so that the dealership doesn't have his/her phone number or any other contact information. Let alone if the car is exported out of the country.
What if they can not find the new owner? Is it an "almost free" car then?

 

Just listen,

in short, go to some lawyers and let them look at the thing. Lots of Lawyers are happy to do it for free (not like they really read it, they just gonna throw it to someone work for him who knows well enough to see any problem(s))

If Lawyer say just ignore them, why not ? or maybe u can see if the lawyer (and you) is greedy enough to counter-sue them for fraud/trying to scam you.

Just like me, when I first got my 8, I signed everything, got my car for like I think 1-2 weeks, then dealer called me and said that theres a "mistake" on the MAC rebate and wanted me to go back and "re-do" The contract. I posted it on this forum you can search for it if you want.

When I asked him "why would I go back"

his answer was

"Well .... to do the right thing !"

....

Uhh Huh .......

Didnt even bother to return his call, never call me back. and I just went back to the dealership to look around last last week. The dude who sold me the car and the manager was "gone" and "replaced" with someone else. I wonder why O_o

 

They can't make you re-sign a contract. The first contract is legally binding so you don't have to redo anything.

 

my brother got something similar, one bank approved his loan, he took the car and a month later the dealer called saying the bank refused the loan, because he had no credit history, the dealer told him bring my father over and co-sign on the loan for him, he got the credit approved, but 20 days later they called again this time because the bank (bank of america) needed my father to have a license, (which he doesnt) at the end of the day Toyota approved the loan and my brother got almost 3 months break to his first payment.

 

I just had an idiot that apparently didn't feel like giving me money at the credit union. I called to talk to the loan people and they couldn't find any reason why my loan had been denied, especially after having already done all the loan papers there for them to get the preapproval in the first place, and when they asked the manager why he wouldn't sign off on my loan he said he had no idea and didn't remember my loan specifically. He then said he got my loan confused with someone else with the same first name who didn't qualify for a loan and that he was "so sorry" for the confusion.