Car financing denied after 2 weeks

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rplaybird
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Car financing denied after 2 weeks

Post by rplaybird »

My son purchased a new vehicle at a local car dealership at 0% interest for 72 months. The finance manager called him 2 weeks later and said they could not secure financing for him and they need the vehicle back.

Not sure what to do here. He asked the dealership about getting his trade-in vehicle back but they told him that was not possible since it already had been sold at auction. Why would a dealership sell a trade-in vehicle at auction if they are not sure financing will go through.

Any help in this matter would be greatly appreciated.
lakpr
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Re: Car financing denied after 2 weeks

Post by lakpr »

This is a well known scam or trick that dealers pull. Too late now, but one should never finance at the dealership with a trade in.

See if you can go to a credit union and refinance the vehicle. Many CUs use auto financing as their bread and butter.
Silk McCue
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Re: Car financing denied after 2 weeks

Post by Silk McCue »

Sorry to hear this. Your son should quickly look to see what sort of rates they can get elsewhere as the dealer is likely going to try to get them to finance through them at a higher rate (scam). FYI - If you have to make payments on a car for 6 years to afford it, you should have chosen a less expensive car and probably a good used car from someone like Carmax.

http://www.realcartips.com/carloans/405 ... scam.shtml

Cheers
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Sheepdog
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Re: Car financing denied after 2 weeks

Post by Sheepdog »

You can get your own financing for this car. Try to get the lender to expedite the application. r

(As has been said here this is not an unusual practice for some dealers.) Next time, get your own financing before hand....or better, save and invest to pay for your next car with cash.
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Kenkat
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Re: Car financing denied after 2 weeks

Post by Kenkat »

If your son is responsible, stable, etc. another option is for you to co-sign on the 0% loan. This is not without some risk but my dad co-signed for my first car and I didn’t stick him with any payments :happy
chevca
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Re: Car financing denied after 2 weeks

Post by chevca »

They can find financing somewhere... probably not 0% though. But, tell them either find financing or give him a car of equal value to the trade in, or that amount in a check. They can't just say, give us our car back, your car is gone, and you get nothing.
Bobby206
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Re: Car financing denied after 2 weeks

Post by Bobby206 »

I'd return the car and get something much cheaper because if he can't qualify then he can't afford it. Sucks for your son but it's just one of those things that happen in real life.
dknightd
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Re: Car financing denied after 2 weeks

Post by dknightd »

rplaybird wrote: Sat Dec 14, 2019 8:47 am My son purchased a new vehicle at a local car dealership at 0% interest for 72 months. The finance manager called him 2 weeks later and said they could not secure financing for him and they need the vehicle back.

Not sure what to do here. He asked the dealership about getting his trade-in vehicle back but they told him that was not possible since it already had been sold at auction. Why would a dealership sell a trade-in vehicle at auction if they are not sure financing will go through.

Any help in this matter would be greatly appreciated.
They need to explain to him why they could not secure financing. Was his credit bad?
0% interest for 72 months is pretty unusual (I think, not sure these days)

I'd probably take the vehicle back. 2 weeks of free use ;) Then look for an alternate vehicle.
Or look for different financing. Perhaps at a different bank? Or maybe put more down?

It is really up to your son to figure out. Perhaps this should have been his first post, not yours?
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mortfree
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Re: Car financing denied after 2 weeks

Post by mortfree »

Tough crowd this morning.

I would co-sign for him if that allows the financing to work. Assuming he is early 20’s and just getting started.

Otherwise credit union or other bank for financing terms that work.
MathIsMyWayr
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Re: Car financing denied after 2 weeks

Post by MathIsMyWayr »

lakpr wrote: Sat Dec 14, 2019 9:17 am This is a well known scam or trick that dealers pull. Too late now, but one should never finance at the dealership with a trade in.

See if you can go to a credit union and refinance the vehicle. Many CUs use auto financing as their bread and butter.
Why can't a dealer get an approval or not on the spot when financing is decided?
BarbBrooklyn
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Re: Car financing denied after 2 weeks

Post by BarbBrooklyn »

Dealers CAN get on the spot approval.

This is a scam.
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lakpr
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Re: Car financing denied after 2 weeks

Post by lakpr »

MathIsMyWayr wrote: Sat Dec 14, 2019 9:43 am
lakpr wrote: Sat Dec 14, 2019 9:17 am This is a well known scam or trick that dealers pull. Too late now, but one should never finance at the dealership with a trade in.

See if you can go to a credit union and refinance the vehicle. Many CUs use auto financing as their bread and butter.
Why can't a dealer get an approval or not on the spot when financing is decided?
BarbBrooklyn got to it before me. Dealers CAN, but deliberately choose to not submit the paperwork for financing and pull scam like this.
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Re: Car financing denied after 2 weeks

Post by oldcomputerguy »

This topic is now in the Personal Consumer Issues forum.
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MathIsMyWayr
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Re: Car financing denied after 2 weeks

Post by MathIsMyWayr »

lakpr wrote: Sat Dec 14, 2019 9:49 am
MathIsMyWayr wrote: Sat Dec 14, 2019 9:43 am
lakpr wrote: Sat Dec 14, 2019 9:17 am This is a well known scam or trick that dealers pull. Too late now, but one should never finance at the dealership with a trade in.

See if you can go to a credit union and refinance the vehicle. Many CUs use auto financing as their bread and butter.
on
Why can't a dealer get an approval or not on the spot when financing is decided?
BarbBrooklyn got to it before me. Dealers CAN, but deliberately choose to not submit the paperwork for financing and pull scam like this.
I had a dealer (manufacturer?) financing of 0.9% once. I received the loan information with all the signatures of the dealer on paper. Still a room for scam in my case? Sorry, not much help for OP but for education for us.
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Re: Car financing denied after 2 weeks

Post by Kuna_Papa_Wengi »

As others have said, this is a common scam. I would call your state's AG office to see if they can help.
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Re: Car financing denied after 2 weeks

Post by Kuna_Papa_Wengi »

Austintatious
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Re: Car financing denied after 2 weeks

Post by Austintatious »

If it were me, I'd consider promptly filing a complaint with the Consumer Financial Protection Bureau. I've found that filing a complaint (in one instance, just the threat of doing so) can sometimes bring a swift and conciliatory response from an offender. Also, determine if there is any agency within your state where one might file a complaint regarding this kind of bait and switch practice.
niceguy7376
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Re: Car financing denied after 2 weeks

Post by niceguy7376 »

What is it that the dealers gain from?
Is it the inertia of the buyer to try to get any financing approved from dealer rather than walk away from car?

If the buyer goes to dealership and says, give me back my trade in or the value of tradein and I am walking away, what will happen?

As for the answer from me, you know more about your son. If you are confident that the car they bought is decent enough and not a luxury/sports car with no income or job, I will co sign or get a loan from my bank or cu and take care of the issue.
chevca
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Re: Car financing denied after 2 weeks

Post by chevca »

I think the word "scam" being used is a little strong. I'm sure folks don't mean it as such, but the dealer isn't doing anything illegal. They're just playing the game to try and pad their bank account, so to speak. It's not cool, IMO, but also well known and happens all the time.
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Re: Car financing denied after 2 weeks

Post by Jack FFR1846 »

First....

Get out the sales agreement and finance agreement. READ them. Some agreements have words along the lines of "the dealer holds the note for a short time while they secure outside financing for the car". If that's the case, tell them you will be happy to drop off the agreed upon monthly payments. They hold the note and have to abide by the terms.

However.....

If the terms read that "the sale is contingent on finding outside financing and the dealer will try to secure this financing but if they can't under the terms stated, whatever terms, or no financing, the buyer is responsible for" then he's stuck. But I would get in touch with the appropriate state agency who regulates dealers. Start with the attorney general's office. They'll know who covers this.

If this dealer is especially slimy, they'll have already put out a contract with a repo company. What I would do is search carefully for any GPS tracking device that might be either magnetically stuck under the car or wired into the car (it will be obvious that it's not factory wiring). I would tend to not leave the car in the open either at home or at work. You don't want them involuntarily taking the car.
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Grt2bOutdoors
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Re: Car financing denied after 2 weeks

Post by Grt2bOutdoors »

chevca wrote: Sat Dec 14, 2019 10:12 am I think the word "scam" being used is a little strong. I'm sure folks don't mean it as such, but the dealer isn't doing anything illegal. They're just playing the game to try and pad their bank account, so to speak. It's not cool, IMO, but also well known and happens all the time.
You should treat the dealer as you would a thief or a crook. They are there to “steal” your money.
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chevca
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Re: Car financing denied after 2 weeks

Post by chevca »

niceguy7376 wrote: Sat Dec 14, 2019 10:10 am What is it that the dealers gain from?
Is it the inertia of the buyer to try to get any financing approved from dealer rather than walk away from car?

If the buyer goes to dealership and says, give me back my trade in or the value of tradein and I am walking away, what will happen?
Exactly, they say, we couldn't get the 0% deal, but we got you this 7.49% financing through so and so bank... then hope the person really wants the car and says okay. They get a better kick back from so and so bank with the higher financing.

They should give the trade in or value back. It was the dealers part of the agreement that fell through. It's up to them to make it right. Of course, if the trade in is already gone, like the OP, and they give you a check... one still needs a car and probably soon...

I had a dealer pull this back in the early 2000s, when interest rates were higher in general. They said they couldn't get the original financing, but found 10% financing. I don't recall exactly, but it was high. I said, whatever but agreed.... then refinanced it through a CU ASAP.
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Re: Car financing denied after 2 weeks

Post by chevca »

Grt2bOutdoors wrote: Sat Dec 14, 2019 10:18 am
chevca wrote: Sat Dec 14, 2019 10:12 am I think the word "scam" being used is a little strong. I'm sure folks don't mean it as such, but the dealer isn't doing anything illegal. They're just playing the game to try and pad their bank account, so to speak. It's not cool, IMO, but also well known and happens all the time.
You should treat the dealer as you would a thief or a crook. They are there to “steal” your money.
I'm in no way saying dealers are out for the buyers best interest. But, it's not like they're doing things that are illegal and the attorneys and all out there just haven't caught on yet.

It's a game, and we've probably all learned a lesson or two about it in our lifetimes like the OP's son is learning now.
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Re: Car financing denied after 2 weeks

Post by Grt2bOutdoors »

chevca wrote: Sat Dec 14, 2019 10:23 am
Grt2bOutdoors wrote: Sat Dec 14, 2019 10:18 am
chevca wrote: Sat Dec 14, 2019 10:12 am I think the word "scam" being used is a little strong. I'm sure folks don't mean it as such, but the dealer isn't doing anything illegal. They're just playing the game to try and pad their bank account, so to speak. It's not cool, IMO, but also well known and happens all the time.
You should treat the dealer as you would a thief or a crook. They are there to “steal” your money.
I'm in no way saying dealers are out for the buyers best interest. But, it's not like they're doing things that are illegal and the attorneys and all out there just haven't caught on yet.

It's a game, and we've probably all learned a lesson or two about it in our lifetimes like the OP's son is learning now.
When society accepts poor behavior as “normal” that is when the line has been crossed. There is nothing normal about a “bait and switch”. I had a dealer try those shenanigans with me and my pregnant wife, my calmer side prevailed and we walked out of the dealership. I really wanted to put the manager through the wall. I found another dealership that didn’t play games and bought the car same day.
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Elysium
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Re: Car financing denied after 2 weeks

Post by Elysium »

Am I in the minority here that is not getting why this is a scam or a game by the dealer? what are they benefiting by taking back a car that is now two weeks old, on the road probably over 500 plus miles based on average driving patterns. They are having to void a sale and now try to sell this car back in the market, at a discount since the car has miles on it. If anything they are losing money on the deal.

As for the trade-in, since OP's son decided to trade it in regardless of this car or another car, the price he received it were all negotiated fairly presumably. That is a separate deal, he is done with it and I assume he is getting the full money of the trade in.

Unless, there is more to the story than reported in the OP.
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Re: Car financing denied after 2 weeks

Post by MathIsMyWayr »

Elysium wrote: Sat Dec 14, 2019 10:36 am Am I in the minority here that is not getting why this is a scam or a game by the dealer? what are they benefiting by taking back a car that is now two weeks old, on the road probably over 500 plus miles based on average driving patterns. They are having to void a sale and now try to sell this car back in the market, at a discount since the car has miles on it. If anything they are losing money on the deal.

As for the trade-in, since OP's son decided to trade it in regardless of this car or another car, the price he received it were all negotiated fairly presumably. That is a separate deal, he is done with it and I assume he is getting the full money of the trade in.

Unless, there is more to the story than reported in the OP.
Do I read it right? OP's son will end up donating his trade-in to the dealer.
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Re: Car financing denied after 2 weeks

Post by Brianmcg321 »

Elysium wrote: Sat Dec 14, 2019 10:36 am Am I in the minority here that is not getting why this is a scam or a game by the dealer? what are they benefiting by taking back a car that is now two weeks old, on the road probably over 500 plus miles based on average driving patterns. They are having to void a sale and now try to sell this car back in the market, at a discount since the car has miles on it. If anything they are losing money on the deal.

As for the trade-in, since OP's son decided to trade it in regardless of this car or another car, the price he received it were all negotiated fairly presumably. That is a separate deal, he is done with it and I assume he is getting the full money of the trade in.

Unless, there is more to the story than reported in the OP.
They aren't going to take back the car. They will suddenly find financing but at 12%. They are pulling him back in to renegotiate their contract.
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Re: Car financing denied after 2 weeks

Post by MotoTrojan »

The phrase ‘local media’ and BBB would be in my response.
Billionaire
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Re: Car financing denied after 2 weeks

Post by Billionaire »

I didn't think it was possible to drive a car off of a dealers lot without first securing financing.
Elysium
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Re: Car financing denied after 2 weeks

Post by Elysium »

Brianmcg321 wrote: Sat Dec 14, 2019 10:57 am
Elysium wrote: Sat Dec 14, 2019 10:36 am Am I in the minority here that is not getting why this is a scam or a game by the dealer? what are they benefiting by taking back a car that is now two weeks old, on the road probably over 500 plus miles based on average driving patterns. They are having to void a sale and now try to sell this car back in the market, at a discount since the car has miles on it. If anything they are losing money on the deal.

As for the trade-in, since OP's son decided to trade it in regardless of this car or another car, the price he received it were all negotiated fairly presumably. That is a separate deal, he is done with it and I assume he is getting the full money of the trade in.

Unless, there is more to the story than reported in the OP.
They aren't going to take back the car. They will suddenly find financing but at 12%. They are pulling him back in to renegotiate their contract.
I see. That is outright fraud. I guess there must be a loophole that allows them to do this. I think in this case if OP or his son could afford to either pay full cash or secure financing through a Credit Union that would settle the issues. I would not walk back in there to be railroaded by unscrupulous people like that, without securing the payment.
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Re: Car financing denied after 2 weeks

Post by Elysium »

MathIsMyWayr wrote: Sat Dec 14, 2019 10:53 am
Elysium wrote: Sat Dec 14, 2019 10:36 am Am I in the minority here that is not getting why this is a scam or a game by the dealer? what are they benefiting by taking back a car that is now two weeks old, on the road probably over 500 plus miles based on average driving patterns. They are having to void a sale and now try to sell this car back in the market, at a discount since the car has miles on it. If anything they are losing money on the deal.

As for the trade-in, since OP's son decided to trade it in regardless of this car or another car, the price he received it were all negotiated fairly presumably. That is a separate deal, he is done with it and I assume he is getting the full money of the trade in.

Unless, there is more to the story than reported in the OP.
Do I read it right? OP's son will end up donating his trade-in to the dealer.
Didn't read the OP like that, he did not mention the trade-in value will not be paid to his son. If that is the case this is a huge scam and I would only go back with money from outside to settle the deal and walk away without any further contact with these people.
chevca
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Re: Car financing denied after 2 weeks

Post by chevca »

Grt2bOutdoors wrote: Sat Dec 14, 2019 10:36 am
chevca wrote: Sat Dec 14, 2019 10:23 am
Grt2bOutdoors wrote: Sat Dec 14, 2019 10:18 am
chevca wrote: Sat Dec 14, 2019 10:12 am I think the word "scam" being used is a little strong. I'm sure folks don't mean it as such, but the dealer isn't doing anything illegal. They're just playing the game to try and pad their bank account, so to speak. It's not cool, IMO, but also well known and happens all the time.
You should treat the dealer as you would a thief or a crook. They are there to “steal” your money.
I'm in no way saying dealers are out for the buyers best interest. But, it's not like they're doing things that are illegal and the attorneys and all out there just haven't caught on yet.

It's a game, and we've probably all learned a lesson or two about it in our lifetimes like the OP's son is learning now.
When society accepts poor behavior as “normal” that is when the line has been crossed. There is nothing normal about a “bait and switch”. I had a dealer try those shenanigans with me and my pregnant wife, my calmer side prevailed and we walked out of the dealership. I really wanted to put the manager through the wall. I found another dealership that didn’t play games and bought the car same day.
I don't disagree, but that line was crossed decades ago in the car business. And, it used to be worse back in the day, IMO. Buyers are more educated overall nowadays, I would say.

But, no one got rich by suing all the dealers because of poor behavior. So, "normal" isn't illegal. One can get angry and complain about it, or.... go on with life.
chevca
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Re: Car financing denied after 2 weeks

Post by chevca »

Billionaire wrote: Sat Dec 14, 2019 10:58 am I didn't think it was possible to drive a car off of a dealers lot without first securing financing.
Happens all the time. If the dealer is setting up the financing, the buyer is basically only approved for financing when the deal is done. They still have to finalize everything that way after the fact.

If the buyer is approved then though, they can find financing somewhere. There's always a bank out there willing, and the dealers have these hook ups at the ready.

I'm guessing the OP meant the 0% financing was denied and not that all financing possibilities were denied? Two weeks seems like a long time though. In my experience, this happened within days.
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Re: Car financing denied after 2 weeks

Post by Grt2bOutdoors »

End of year, they need to make their quota!
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Re: Car financing denied after 2 weeks

Post by MathIsMyWayr »

Elysium wrote: Sat Dec 14, 2019 11:03 am
MathIsMyWayr wrote: Sat Dec 14, 2019 10:53 am
Elysium wrote: Sat Dec 14, 2019 10:36 am Am I in the minority here that is not getting why this is a scam or a game by the dealer? what are they benefiting by taking back a car that is now two weeks old, on the road probably over 500 plus miles based on average driving patterns. They are having to void a sale and now try to sell this car back in the market, at a discount since the car has miles on it. If anything they are losing money on the deal.

As for the trade-in, since OP's son decided to trade it in regardless of this car or another car, the price he received it were all negotiated fairly presumably. That is a separate deal, he is done with it and I assume he is getting the full money of the trade in.

Unless, there is more to the story than reported in the OP.
Do I read it right? OP's son will end up donating his trade-in to the dealer.
Didn't read the OP like that, he did not mention the trade-in value will not be paid to his son. If that is the case this is a huge scam and I would only go back with money from outside to settle the deal and walk away without any further contact with these people.
The jacked-up price of a trade-in is usually applied to the jacked-up purchase of a car.
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Re: Car financing denied after 2 weeks

Post by Elysium »

chevca wrote: Sat Dec 14, 2019 11:07 am
Grt2bOutdoors wrote: Sat Dec 14, 2019 10:36 am
chevca wrote: Sat Dec 14, 2019 10:23 am
Grt2bOutdoors wrote: Sat Dec 14, 2019 10:18 am
chevca wrote: Sat Dec 14, 2019 10:12 am I think the word "scam" being used is a little strong. I'm sure folks don't mean it as such, but the dealer isn't doing anything illegal. They're just playing the game to try and pad their bank account, so to speak. It's not cool, IMO, but also well known and happens all the time.
You should treat the dealer as you would a thief or a crook. They are there to “steal” your money.
I'm in no way saying dealers are out for the buyers best interest. But, it's not like they're doing things that are illegal and the attorneys and all out there just haven't caught on yet.

It's a game, and we've probably all learned a lesson or two about it in our lifetimes like the OP's son is learning now.
When society accepts poor behavior as “normal” that is when the line has been crossed. There is nothing normal about a “bait and switch”. I had a dealer try those shenanigans with me and my pregnant wife, my calmer side prevailed and we walked out of the dealership. I really wanted to put the manager through the wall. I found another dealership that didn’t play games and bought the car same day.
I don't disagree, but that line was crossed decades ago in the car business. And, it used to be worse back in the day, IMO. Buyers are more educated overall nowadays, I would say.

But, no one got rich by suing all the dealers because of poor behavior. So, "normal" isn't illegal. One can get angry and complain about it, or.... go on with life.
Recently we had a bait and switch moment with a dealer. We were shopping for a car last month and were communicating with three dealers through phone/text, one of them agreed on the best possible price at that point and asked us to come over to close the deal. When we got there everything looked good, they were all smiles, offer for coffee, sit at a nice table etc. The sales person and his manager both came out and made sure to put on their best charm, and said they are working on getting the car ready then bring out paper work.

Few minutes later, the salesperson comes with a printed sheet with numbers and asks which one of us are active military, can they have the identification. He sounded so normal and legitimate even though we never made mention of active military ever (we are not). I told him neither of us are, and then he was that changes things because I applied a $1000 discount assuming you were active military because that was what one of the associates we interacted told him. Then the manager and he came by to put up some pep talk, saying they mixed up with another customer and how sorry they are for all that, but they can no longer do the same deal but would offer $500 instead. Most people I guess would at that point think it is worth because we were off only $500 out of a a few thousand off the MSRP. But we declined after five minute deliberation. At that point we concluded that these are unscrupulous people that you cannot trust to make a honest deal, there could be even more problems if you do business with them, so we walked out.

Another dealer called us soon after and made an even better deal which we closed that same evening. Next day, this dealers associates started calling to get us back in, I told them we are done.
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Re: Car financing denied after 2 weeks

Post by Stinky »

Jack FFR1846 wrote: Sat Dec 14, 2019 10:15 am First....

Get out the sales agreement and finance agreement. READ them. Some agreements have words along the lines of "the dealer holds the note for a short time while they secure outside financing for the car". If that's the case, tell them you will be happy to drop off the agreed upon monthly payments. They hold the note and have to abide by the terms.

However.....

If the terms read that "the sale is contingent on finding outside financing and the dealer will try to secure this financing but if they can't under the terms stated, whatever terms, or no financing, the buyer is responsible for" then he's stuck. But I would get in touch with the appropriate state agency who regulates dealers. Start with the attorney general's office. They'll know who covers this.
I’m really interested in hearing what OP finds when he reads the contract.

And interested in hearing how this gets resolved.
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Re: Car financing denied after 2 weeks

Post by Kenny911 »

Billionaire wrote: Sat Dec 14, 2019 10:58 am I didn't think it was possible to drive a car off of a dealers lot without first securing financing.
Exactly. Something doesn't sound right. Return the car, we sold your car at auction... Ridiculous. If you signed the paperwork and have it, you should tell them to take a hike. It's your car, it's in your name.
chevca
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Re: Car financing denied after 2 weeks

Post by chevca »

I've had really good luck with the last couple dealerships I've bought from. No games at all, straight up all the way through. Made me suspicious something was up I wasn't catching. :happy

One dealer before them though was all shady. I went in with pre-approved financing from my CU, said I want that truck, test drove it, and all good, right? Nope, manager came in saying they needed to run my name/credit... terrorist act... blah blah. I said I had my own financing and wanted to use that. Back and forth over and over... I said give me my keys back for my car and walked. Next day, the sales kid called and said his manager said they could do the deal now. I said sorry (he was nice kid), but you lost a sale because of your manager... you won't see my face in your dealership ever again.

After one has learned a lesson or two, they can play the game right along with them. :happy
dknightd
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Re: Car financing denied after 2 weeks

Post by dknightd »

OP has not followed up. I will not bother replying to somebody who does not reply to their original post. This strikes me as a useless waste of time and thought! New rule for me, the OP has to have posted more than once before I even bother.
I'm guessing the OP is testing the market to see what we will put up with, and how we would respond. It could be the OP is a car salesperson!
Last edited by dknightd on Sat Dec 14, 2019 11:42 am, edited 1 time in total.
If you value a bird in the hand, pay off the loan. If you are willing to risk getting two birds (or none) from the market, invest the funds.
neilpilot
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Re: Car financing denied after 2 weeks

Post by neilpilot »

Kenny911 wrote: Sat Dec 14, 2019 11:32 am
Billionaire wrote: Sat Dec 14, 2019 10:58 am I didn't think it was possible to drive a car off of a dealers lot without first securing financing.
Exactly. Something doesn't sound right. Return the car, we sold your car at auction... Ridiculous. If you signed the paperwork and have it, you should tell them to take a hike. It's your car, it's in your name.
Unlikely the title has been issued in his name
KyleAAA
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Re: Car financing denied after 2 weeks

Post by KyleAAA »

You can get your own financing. It seems odd the dealership would ask for the car back instead of presenting alternate financing options. Your options are to either secure your own financing or return the vehicle. I’m guessing your son probably has credit on the poorer side, so it might be difficult but not impossible. You can avoid this in the future by getting pre approved before visiting the dealership.

The trade in and car purchase are independent transactions, so they are under no obligation to keep the old car around just in case.
KyleAAA
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Re: Car financing denied after 2 weeks

Post by KyleAAA »

Billionaire wrote: Sat Dec 14, 2019 10:58 am I didn't think it was possible to drive a car off of a dealers lot without first securing financing.
It is. The dealership will shop you around with its partner banks. Financing is almost never secured before you leave. It’s in the boilerplate language of the contract you sign. O% financing through the manufacturer is special since they can’t shop you around. I expect they tried and just couldn’t find anything.
Last edited by KyleAAA on Sat Dec 14, 2019 11:57 am, edited 1 time in total.
KyleAAA
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Re: Car financing denied after 2 weeks

Post by KyleAAA »

Elysium wrote: Sat Dec 14, 2019 10:36 am Am I in the minority here that is not getting why this is a scam or a game by the dealer? what are they benefiting by taking back a car that is now two weeks old, on the road probably over 500 plus miles based on average driving patterns. They are having to void a sale and now try to sell this car back in the market, at a discount since the car has miles on it. If anything they are losing money on the deal.

As for the trade-in, since OP's son decided to trade it in regardless of this car or another car, the price he received it were all negotiated fairly presumably. That is a separate deal, he is done with it and I assume he is getting the full money of the trade in.

Unless, there is more to the story than reported in the OP.
The car was not titled yet, so it is still new. They will not have to sell it at a discount. It’s very common for new cars to have over 1000 miles on them.
Elysium
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Re: Car financing denied after 2 weeks

Post by Elysium »

KyleAAA wrote: Sat Dec 14, 2019 11:44 am
Elysium wrote: Sat Dec 14, 2019 10:36 am Am I in the minority here that is not getting why this is a scam or a game by the dealer? what are they benefiting by taking back a car that is now two weeks old, on the road probably over 500 plus miles based on average driving patterns. They are having to void a sale and now try to sell this car back in the market, at a discount since the car has miles on it. If anything they are losing money on the deal.

As for the trade-in, since OP's son decided to trade it in regardless of this car or another car, the price he received it were all negotiated fairly presumably. That is a separate deal, he is done with it and I assume he is getting the full money of the trade in.

Unless, there is more to the story than reported in the OP.
The car was not titled yet, so it is still new. They will not have to sell it at a discount. It’s very common for new cars to have over 1000 miles on them.
I would ask for a discount if i see 1000 miles on a new car. Typically they will have to offer a discount in a competitive market. But I guess that is not what they are thinking here obviously based on follow-up posts, instead trying to scam the customer into accepting a higher finance rate.

I would secure money before going back in for any discussions with this dealer. OP should either find cash payment or an outside pre-approved check from credit union/bank.
KyleAAA
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Re: Car financing denied after 2 weeks

Post by KyleAAA »

Elysium wrote: Sat Dec 14, 2019 12:02 pm
KyleAAA wrote: Sat Dec 14, 2019 11:44 am
Elysium wrote: Sat Dec 14, 2019 10:36 am Am I in the minority here that is not getting why this is a scam or a game by the dealer? what are they benefiting by taking back a car that is now two weeks old, on the road probably over 500 plus miles based on average driving patterns. They are having to void a sale and now try to sell this car back in the market, at a discount since the car has miles on it. If anything they are losing money on the deal.

As for the trade-in, since OP's son decided to trade it in regardless of this car or another car, the price he received it were all negotiated fairly presumably. That is a separate deal, he is done with it and I assume he is getting the full money of the trade in.

Unless, there is more to the story than reported in the OP.
The car was not titled yet, so it is still new. They will not have to sell it at a discount. It’s very common for new cars to have over 1000 miles on them.
I would ask for a discount if i see 1000 miles on a new car. Typically they will have to offer a discount in a competitive market. But I guess that is not what they are thinking here obviously based on follow-up posts, instead trying to scam the customer into accepting a higher finance rate.

I would secure money before going back in for any discussions with this dealer. OP should either find cash payment or an outside pre-approved check from credit union/bank.
You wouldn’t get it. 99% of buyers wouldn’t ask. You can easily get over 1000 miles on a new car just from a few test drives and transferring it to another dealership.
mdavis6890
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Re: Car financing denied after 2 weeks

Post by mdavis6890 »

It's important to know the value of the trade-in as well as the price of the car we're talking about.

You should have strongly discouraged your son from financing any car purchase. That one bit of advice will make a huge difference in the financial outcome of his life. Never borrow money to buy a car, ever. (sometimes people who already have hundreds of thousands of dollars in cash try to earn a few extra pennies by taking a cheap car loan and investing the money instead, but by that point, who cares?)

Unless he'd be giving up a valuable trade-in that made up a significant portion of the purchase price of this new car, I'd gladly give the dealer the car back now that they've opened a window of opportunity for him to do so and correct the prior mistake of borrowing to buy a car.

Then, since he needs a car, he should spend $500-1000 on the ugliest used car he can find. If he doesn't have that much, just give it to him. If neither of you have that much, I hope he has a bicycle. He can get a nicer car when he has more money to buy one.
Jags4186
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Re: Car financing denied after 2 weeks

Post by Jags4186 »

The dealer needs to undo the entire deal. Until you receive either a check for the full trade-in value of your son's car or your son's car back, I would not return the vehicle. You will need to garage the car (or at very least make it untowable by parking another vehicle behind) to prevent it from being picked up at night.

If you want to go to the dealer to try to work things out that's fine. Just do not bring the car in question with you to the dealer. There is a good chance they would prevent you from leaving with it.

And, as others said if your son is generally a good kid I would cosign the loan for him.
Last edited by Jags4186 on Sat Dec 14, 2019 12:14 pm, edited 2 times in total.
HomeStretch
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Re: Car financing denied after 2 weeks

Post by HomeStretch »

Your son needs to read the agreement he signed to see what it says, if anything, about this situation. If he really likes the car, consider lending to him or co-signing the 0% loan if your son can be relied on to pay the loan or you. If he has any second thoughts about the car, he can keep driving it (putting on more miles) until the dealer shows up to take it back (with a certified check for the trade-in) or discovers they can offer 0% financing after all. He should also consider filing a complaint with attorney general’s office.
Elysium
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Re: Car financing denied after 2 weeks

Post by Elysium »

KyleAAA wrote: Sat Dec 14, 2019 12:05 pm
Elysium wrote: Sat Dec 14, 2019 12:02 pm
KyleAAA wrote: Sat Dec 14, 2019 11:44 am
Elysium wrote: Sat Dec 14, 2019 10:36 am Am I in the minority here that is not getting why this is a scam or a game by the dealer? what are they benefiting by taking back a car that is now two weeks old, on the road probably over 500 plus miles based on average driving patterns. They are having to void a sale and now try to sell this car back in the market, at a discount since the car has miles on it. If anything they are losing money on the deal.

As for the trade-in, since OP's son decided to trade it in regardless of this car or another car, the price he received it were all negotiated fairly presumably. That is a separate deal, he is done with it and I assume he is getting the full money of the trade in.

Unless, there is more to the story than reported in the OP.
The car was not titled yet, so it is still new. They will not have to sell it at a discount. It’s very common for new cars to have over 1000 miles on them.
I would ask for a discount if i see 1000 miles on a new car. Typically they will have to offer a discount in a competitive market. But I guess that is not what they are thinking here obviously based on follow-up posts, instead trying to scam the customer into accepting a higher finance rate.

I would secure money before going back in for any discussions with this dealer. OP should either find cash payment or an outside pre-approved check from credit union/bank.
You wouldn’t get it. 99% of buyers wouldn’t ask. You can easily get over 1000 miles on a new car just from a few test drives and transferring it to another dealership.
That's not normal. If a car has 1000 miles that means it has been used for test drives. Transfer of autos happen by truck typically, and not driven. I recently bought a car with 4 miles on it, and the one before that just came off a truck from another dealer with 5 miles on it. I did once buy a car with 5000 miles on it that was untitled because it was given to a regional manager to drive, I got a large discount for it. That said, pricing is all local, in my area car market is very competitive, as people have flexibility to cross back and forth between 3 states to purchase within a 25 mile radius and the other state is always willing to offer large discount for coming over, as it is a bonus sale for them.
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