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Established Member
Haleybrook
Posts: 17
Registered: ‎11-15-2013
0

Can I drive the new car home with confidence?

The financing was approved on Tuesday and I've been trying to make my choice.  I finally did today. II am supposed to sign the paperwork tomorrow.  They are arranging the insurance with my agent as well.  Can I drive away with confidence?  I have read where people have done that before and then a couple of days later they get a call that their was a problem and the financing did not go through..  I guess I'm a little paranoid, but would like to avoid that kind of situation.  Anyone know?

Established Member
blazin4credit
Posts: 15
Registered: ‎12-25-2013
0

Re: Can I drive the new car home with confidence?

I have ussually read that in most cases people leave the dealer without a contract and financing finalized. Then a dealer would call you back saying they needed the car back warning you of potential fees you will incur if you do not bring back the vehicle. i advise you NOT to leave a dealer without your financing done so you do not walk into any problems. I am not sepaking from experience but i have been doing research myself for my first car i plan to buy sometime this year. i am pretty sure others will be able to help you out.


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Established Member
Haleybrook
Posts: 17
Registered: ‎11-15-2013
0

Re: Can I drive the new car home with confidence?

I certainly hope all the paperwork will be signed and insurance arranged tomorrow.  My parents bought their car there a couple of years ago and they got approved for financing, signed the papers and drove the car home in a couple of hours and that was that.  I guess the dealership has to wait for the check to arrive. 

 

I'm not sure of any reason that Wells Fargo would approve the loan and then unapprove it and not send the money.  I just don't want to be embarrassed by bringing the car home and then the deal not going through.  I've read of it happening with people who have great credit too.

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Senior Contributor
StartingOver10
Posts: 4,076
Registered: ‎03-06-2010
0

Re: Can I drive the new car home with confidence?

What you are aluding to is "spot financing".

 

Most of the time when you sign off on the contract, you drive the car home and that is it. It's yours. Sometimes a dealership F&I guy will pull the 'spot financing' trick on you.

If you have financing lined up with a lender that you bring to the dealer then there is no way the spot financing can occur.

 

Was the Wells Fargo financing lined up by you or by the dealer?

Established Member
Haleybrook
Posts: 17
Registered: ‎11-15-2013
0

Re: Can I drive the new car home with confidence?

Yes, it was the dealership who arranged the financing.  I thought of trying before I went in and agreed on the car price, but my parents have done business with this dealership and the sales person is a long time friend of our family.  They were happy with their experience, so I let them handle it, expecially with my credit situation. 

 

As it turns out, my dad co-signed and we got 4% interest rate, so I'm pretty happy with that. 

 

I asked the finance guy if the financing could fall through after we were approved and he said it had never seen in 30 years, except for once and when that happened, he signed off on the loan.  ???  I don't know about that, but I will feel better once I get my statement from Wells Fargo.

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Senior Contributor
StartingOver10
Posts: 4,076
Registered: ‎03-06-2010
0

Re: Can I drive the new car home with confidence?


Haleybrook wrote:

Yes, it was the dealership who arranged the financing.  I thought of trying before I went in and agreed on the car price, but my parents have done business with this dealership and the sales person is a long time friend of our family.  They were happy with their experience, so I let them handle it, expecially with my credit situation. 

 

As it turns out, my dad co-signed and we got 4% interest rate, so I'm pretty happy with that. 

 

I asked the finance guy if the financing could fall through after we were approved and he said it had never seen in 30 years, except for once and when that happened, he signed off on the loan.  ???  I don't know about that, but I will feel better once I get my statement from Wells Fargo.


lol...you got that right! Spot financing has been around forever. Glad you got a good deal. Sounds like it worked because your Dad co-signed and he was/is a long time customer of the dealer. After you have good payments for 6 months to a year, you can refi with another lender (if you choose) and take your Dad off the co-signing hook.

 

If you choose to refi later - go directly to a CU to get it done. Next time you buy a vehicle, line your financing up with a CU first and you won't have the worry about the spot delivery issue plus it gives you a good position to negotate from at the dealership.

 

Once again, the deal you got is good. Congrats!

Established Member
Haleybrook
Posts: 17
Registered: ‎11-15-2013
0

Re: Can I drive the new car home with confidence?

Thanks.   I'll feel better when I get the statement in the mail.  I'm just a worrier I guess, after all I have read.

 

I had the insurance put on the car yesterday.  I really hope it is final.

 

I will refinance in my own name later, but don't know if I will get better than a 4% interest rate. 

 

I can open an account at my local State Credit Union, but didn't know if they would do credit check before opening it and I wanted to avoid a ding on my score.  Do you know?  Plus, Until my credit scores are higher, I don't think the Credit Union would refinance my car anyway.  I guess I could open the Savings account and just wait.

 

I did learn alot from this car purchase.  Next time things will be different.  Still, overall things went pretty good.

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Senior Contributor
StartingOver10
Posts: 4,076
Registered: ‎03-06-2010
0

Re: Can I drive the new car home with confidence?

Most CU's require a hard pull to join.

 

Wait to join until you get your Welcome packett in the mail for your new car.

 

I'm glad you survived your first purchase. Once you finance through a CU, the process is much easier on the purchase side. Still it is valuable experience doing what you did and its great your Dad is helping.

Contributor
black_citi
Posts: 156
Registered: ‎12-20-2013
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Re: Can I drive the new car home with confidence?

That happened to me when I bought my car. It was a Saturday though and the salesman did tell me I got preapproved. I signed all the paper work thinking I was actually approved when I wasn't. that following Wednesday I get a call from them telling me I need to come back in to sign some more financing papers. The original loan, had it gone through, would have been with citi bank with 10% interest. My new loan is currently with santander at 13.7%. Apparently citi wanted me to put about $2000 down and I couldn't which is why they denied me. It was actually my fault that I didnt have them clarify with me the terms. I was so excited I was able to buy a car finally I just lost track lol.

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maiden_girl
Posts: 2,098
Registered: ‎12-29-2011
0

Re: Can I drive the new car home with confidence?


black_citi wrote:
That happened to me when I bought my car. It was a Saturday though and the salesman did tell me I got preapproved. I signed all the paper work thinking I was actually approved when I wasn't. that following Wednesday I get a call from them telling me I need to come back in to sign some more financing papers. The original loan, had it gone through, would have been with citi bank with 10% interest. My new loan is currently with santander at 13.7%. Apparently citi wanted me to put about $2000 down and I couldn't which is why they denied me. It was actually my fault that I didnt have them clarify with me the terms. I was so excited I was able to buy a car finally I just lost track lol.

The dealership could have negotiated with the bank. I recently had a similar scenario happen to me. Dealership was trying to pull the wool over my eyes in a finance deal...bait and switch! They let you take the car home and get all excited and try to bait and switch you thinking you will do anything to keep the car you have.

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