Bought a car last week -- dealer is now telling me to "come back to discuss financing" (credit, loan)

Raiderman · 10-13-2014, 04:33 PM

Quote:

Originally Posted by shakedotazz

This is the only language I could see on the paperwork closest to the issue regarding financing...
Bolded parts were bolded on the paper...

Check your other paperwork. There may be a separate form explaining the terms. It may be that the leasing company came back with a tier 2 approval instead of a tier 1, or vice-versa. If it's the opposite, and the leasing company came back with a tier 1 after you signed for tier 2, your payment may go back down, as most leasing companies only allow a dealership a certain markup on the money factor (normally 70 basis points, but it varies).

Most importantly, what did the F&I manager say when you called him back?

shakedotazz · 10-13-2014, 04:38 PM

The line "No agreements exist between you and Lessor except as set forth in this Lease" tells me I shouldn't be missing any pages pertaining to the agreement. The breakdown of the fees are all on the first page. The sentence I quoted above is on the other side of the sheet.

The other stuff I have pertain to my trade in, and things they try to upsell (like GAP, LoJack, etc)

The manager just said that manufacturer's bank didn't approve, and that I needed to come in to discuss further.

shakedotazz · 10-13-2014, 04:45 PM

He has a customer coming in right now, and can't talk.
I "need to come in". How convenient.

Raiderman · 10-13-2014, 04:45 PM

Quote:

Originally Posted by shakedotazz

The line "No agreements exist between you and Lessor except as set forth in this Lease" tells me I shouldn't be missing any pages pertaining to the agreement. The breakdown of the fees are all on the first page. The sentence I quoted above is on the other side of the sheet.

The other stuff I have pertain to my trade in, and things they try to upsell (like GAP, LoJack, etc)

The manager just said that manufacturer's bank didn't approve, and that I needed to come in to discuss further.

If they didn't approve, then it is what it is. He probably wants to put you through a different leasing company that may be more lenient given your situation.

The separate form would be between you and the dealership, not between you and the lessor. It will be a standard form stating that, in the event financing (or leasing in your case) doesn't go through, you are to return the car and get your trade and monies back. At that point you can choose to do so, or agree to the terms for which you get approved.

This happens on a regular basis. The only way around financing issues is to pay cash for your cars. But until there is an executed contract with the leasing company, at the terms they dictate, there is no deal. I know it is frustrating, but now you weigh your options. Either take your old car back and start over with another brand/dealership, etc, or see if the leasing company's terms are agreeable.

Raiderman · 10-13-2014, 04:49 PM

Quote:

Originally Posted by shakedotazz

He has a customer coming in right now, and can't talk.
I "need to come in". How convenient.

Yeah, that, unfortunately, is pretty common practice with F&I managers. There's a better chance of you agreeing to the new terms instead of unraveling the deal if you are in a chair in front of him and not on the phone.

My recommendation - set a ceiling of affordability, and stick to it. Realize that your original deal is probably not going to happen. If they can get to or below that ceiling, and you're comfortable with the payments, then do it. If not, unwind the deal and start over. I feel for ya, though. It's one of the main reasons I don't like buying cars, and I was in the business most of my life. Just not a fun way to spend your evening. I do things a bit differently based on my experience, but, in your situation now, I would recommend doing the above.

shakedotazz · 10-13-2014, 04:56 PM

So this is not illegal for them to do, is what I gather from the responses, even with the signed paperwork --- correct?
If so, I'll just return the car to them as soon as they refund my down payment in full, as well as the car I traded in.

Raiderman · 10-13-2014, 04:58 PM

Quote:

Originally Posted by shakedotazz

So this is not illegal for them to do, is what I gather from the responses, even with the signed paperwork --- correct?
If so, I'll just return the car to them as soon as they refund my down payment in full, as well as the car I traded in.

Correct. Not illegal. Your plan is one of your options. If paid by credit card, they can do a reversal immediately. If by check or cash, you'll want to be there before the office closes so someone can cut a check. Offices normally close at 5:00p, by the way.

shakedotazz · 10-13-2014, 04:59 PM

I really appreciate your help Raiderman!

Raiderman · 10-13-2014, 05:00 PM

Quote:

Originally Posted by shakedotazz

I really appreciate your help Raiderman!

No problem. Hope it works out for you.

airics · 10-13-2014, 11:59 PM

They did a spot delivery. Here's where it gets tricky.. Carmax is famous for this. Let's say the car you bought was $20k and they gave you $1k for your trade. There was no payoff on your car..you owned it free and clear... In Nevada, you have to return the car and they don't have to give you your trade back. They can give you the $1k.

Happened to my coworker at carmax... They gave her $300 for her running Saturn in trade... Jacked the interest rate and gave her 300 bucks..

Perfectly legal..not right...but legal..