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Well I found out yesterday, that the 6 months of my paystubs, my husband's paystubs & his retirement pay stub from doing 20 years active duty in the Army wasn't enough, now they want 6 months of bank statements. I asked where our trade in was and he said they already sold it! I have never had this happen to us before.
I *purchased* a used newer car on July 5, I was told I was approved, the interest rate, monthly payment, & finance company.
Quote:
Originally Posted by selhars
Can someone explain in plain what this situation is?
The OP bought a car, using a trade in, and took possession of the new car without technically knowing FOR SURE s/he'd been approved for the loan??
Sounds more like extremely shady tactics by the dealer to deliberately confuse the buyer/OP.
Not intending to insult the OP, but it sounds more like not 100% understanding what they're signing for, and possibly assuming this is all just standard operating procedure. Much like many things online, where virtually no one bothers to read the TOS before clicking on agree/accept, because it's all much too complicated legal mumbo jumbo, and 250 pages worth of it, which is way too much to deal with just to post a meme on Facebook. Then they're shocked, and claim Facebook/Twitter/whatever is stealing the rights to THEIR photos...
Or like all the people that got in WAY over their heads on 5/1 ARM interest only mortages, then were blown away when the "real" payments came due...
Just based on the very first line of the OP's post, it sure sounds like they had every reason to believe that they were approved, and there wasn't any issue to be concerned about. It's also not at all uncommon for the dealer to carry the loan initially, then transfer it to another finance company later. Last new car I bought was like that. Did some pre-approvals myself through a few lenders, just to get an idea of where I'd be terms wise. I did all the actual financing through the dealer, and I got approved through a local credit union, but the loan was initially carried by the dealer for a few weeks. Same thing as the OP - got the approval, monthly payment, and interest rate, as well as the name of the credit union that is taking the loan. It took about 3 weeks for it to transfer, shortly before the 1st payment came due.
That said, I wonder if the OP went through one of the "buy here, pay here" kind of places, or the places that cater to those with less than stellar credit. I remember a couple times in my younger years when I screwed up my credit in all kinds of horrible ways, I went looking for a place that would finance me on a car. All those places also wanted all kinds of various paperwork like the OP, and even then I felt like I was just on the fast track to digging my hole even deeper. Seems far more often than not, those are also the places that people complain about getting screwed over by.
Compared to a year ago when I bought the last Chevy, I just walked into the same dealer that my employer uses for all their fleet sales, gave them my ID and social, and they handled everything else, including getting proof of employment/salary, etc. Walked out to my new car an hour later, no fuss no muss. Car itself turned out be a royal PITA, but the dealer experience was easy, lol.
No we did not go through a buy here pay here, we went through a very large local Ford dealership, the car is a 2017 Dodge Durango & we read the whole yellow long contract before buying it no where does it say conditional. We traded in our 2012 pick up truck, they listed it for sale the same day.
Can someone explain in plain what this situation is?
The OP bought a car, using a trade in, and took possession of the new car without technically knowing FOR SURE s/he'd been approved for the loan??
IF I have got this correct how can cases like this be avoided.
What happened is called a spot delivery. The only way to avoid it is to say "I'll wait for the approval" but the dealer wants the car sold and often the customer is so emotionally tied up in the purchase, they want the car "on the spot."
Remember that buying the car and arranging the financing are two different transactions. Never the dealer arrange financing unless you know you will qualify. Courts have determined that the deal is complete on their part when the sales order is signed. Dealer financing is a separate contract.
We got a call from the finance company yesterday & they didn't know what the paystub for my husband's military retirement was, so they requested 3 months bank statements showing deposits & then finalized & approved the loan. So we are done. Thank goodness
This is why I never set foot into a dealer without having a check from my credit union in hand. The dealer always beats it, of course, but I want a bit of assurance. That being said...I've never driven the car off without being approved for the loan, so sounds kinda like a shady dealer to me. The dealer I use has always told me ahead of time who the lender is and what the rate will be.
They did tell us the lender, the rate & monthly payment before we drove off the lot. But the lender didn't accept the proof of my husband's military retirement so we had to send bank statements
They did tell us the lender, the rate & monthly payment before we drove off the lot. But the lender didn't accept the proof of my husband's military retirement so we had to send bank statements
But without an approved loan agreement and funding from the bank, you didn't have the loan.
As I said, never do a spot delivery.
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