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Dealership refusing to use my DCU loan. Help?

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Anonymous
Not applicable

Dealership refusing to use my DCU loan. Help?

So I thought I did everything right before going to buy a car. I was approved for a loan through DCU at 4.99% They told me all I needed was for the dealership to upload the purchase and sales agreement and they would issue payment. I found the car I wanted, sat down at the dealership with my loan, and everything went to hell. I'm so confused.

 

First they told me since DCU is on the East coast (I'm in AZ) they were "probably closed" and they would start on "other paperwork" They had me fill out a form without telling me what it was, then came back 10 minutes later with my credit report. **bleep**. The guy tells me "Your scores are pretty low (652) but I can get you a rate around 10%" I'm like...um, I already have financing, I told you that, I just need you to send the purchase agreement to DCU. So they leave to do something else and on a whim I call DCU. And they promptly answer. They aren't closed after all, surprise! The very nice lady at DCU tells me what I already know...they need the documents either faxed, uploaded, or emailed to them from the dealership and they will proceed with my loan. The dealer says okay, just take the car home tonight (it was getting late at this point) as a free rental and we'll figure this out tomorrow. We want you to drive the car around anyway and see if you like it. So I did.

 

The next day I wake up to 8...that's EIGHT...new hard inquiries on my CR from every lender on the planet, apparently. Even worse, they weren't all coded as auto loans, some said "business loans". The dealership still hasn't uploaded the documents to DCU. They left a voicemail saying they "found me a good rate" but when I called back after work they had gone home for the night.

 

Do I take the car back tomorrow morning? How do I get the hard inquiries removed? Why are they so determined to finance me themselves when I have perfectly respectable financing already approved through DCU? Do I have to buy the car since I've been driving it for two days? I have spent so much time on these forums improving my score so we could get a third car as my son just turned 16. I'm completely disheartened that I may have screwed myself (my score already dropped significantly with these 8 hard pulls). Any help would be greatly appreciated.

Message 1 of 20
19 REPLIES 19
Rackham94
Established Contributor

Re: Dealership refusing to use my DCU loan. Help?

They are probably upset because essentially are not making the extra money on financing and hoping they can get you at same or lower rate. Tell them to give you a buyer's order and take a picture of it make sure it is correct and convert it to a PDF email it to DCU.

 

DCU will send you a check for the amount and hand it to the dealership at this point you have the car as a loaner.

Message 2 of 20
Rackham94
Established Contributor

Re: Dealership refusing to use my DCU loan. Help?

As far as the inquiries they will be grouped as one if done within a 30 day period. So the application for DCU and 8 banks they tried will be one hard inquiry on CRs. If they were done within a month time span.

Message 3 of 20
pipeguy
Senior Contributor

Re: Dealership refusing to use my DCU loan. Help?

Having just purchased a car using DCU - the process is seemless and easy.

 

Tell the dealer to stick the car where the sun doesn't shine and you'll take your business elsewhere. This dealer is flat out trying to make a lot of extra money on financing - thank them for the "free rental" and tell them they blew it, you are under no obligation to use dealer financing.

 

You should also tell them to remove all of the unauthorized HP's and that you'll be filing a BBB and CFPB complaint (may or may not work, but it's worth the try)

 

I'm SURE I would NOT want to go back to that dealer if I had any issues with the car given their less than honest dealings up front ! 

Message 4 of 20
Anonymous
Not applicable

Re: Dealership refusing to use my DCU loan. Help?

You should ALWAYS READ EVERYTHING before signing. What if they stuck some piece of paper in front of you charging you 15% on a loan? You would be stuck paying 15% because you didn't read what you were signing. Your signature has the power to do a lot of damage. Use it wisely, and do not just plop it down without knowing what you are doing. As you see, you just authorized them to pull your credit without wanting them to because you didn't read what you signed.

If you told them you had financing already and they pulled that CRAP, then they obviously dont give a rats behind about your satisfaction. They just care about squeezing every dime out of you, and obviously they dont mind insulting your intelligence by pulling a stunt like that. I would absolutely tell them to take that car and shove it, and tell them why. I would ask for the manager and tell him. You have ZERO obligation to them, even if you did take the car for an extended test (taking it home). Just walk away. There have zero concern for your satisfaction. Just think what they might do if you have some problem down the line that may cost them money. How anxious do you think they will be to take care of it? Think about that.
Message 5 of 20
jim44
Established Contributor

Re: Dealership refusing to use my DCU loan. Help?

+1  The dealership can't legally pull your credit without your signed authorization so one of those papers you signed obviously gave them permission. Next, other posters are correct, the HPs will be lumped into one. 

DCU should have given you some sort of confirmation that you had been approved such as a draft or offiical letter. I can't see any dealership allowing you to "take home" a vehicle overnight because they want you to test drive.  They must have had you approved by that time.

For future reference you can asked for a Bill of Sale/Puchase agreement showing all the particulars of the sale, have them fax it to your preapproved lender OR you can send it yourself and they will send the approval to the dealer.  Auto loan funding checks are usually made payable to the dealer or the dealer AND the purchaser.  If you haven't signed a bill of sale with the dealer you can return the vehicle with no problem.

Agreed that some dealer's business practices are underhanded but they are in the business to make money just like every other business.  The trick is to educate yourself before buying. Dealers benefit from repeat sales so not all of them take advantage of their customers.  If you know anyone in the business, talk to them and they can advise on how to proceed. I hope everything works out for you. 

Message 6 of 20
SamsungHDTV
Established Contributor

Re: Dealership refusing to use my DCU loan. Help?

You should report this dealership. Take your business elsewhere if you haven't signed the purchase agreement. If you have, tell them you have secured financing. They straight up lied to you on several levels. The only way I would let them have the financing is if they beat DCU (even though what the did was highly unethical). Please don't sign anything until you read it. Take your time on it, let them know you want space to read it so they aren't hovering. They know they can take advantage of you, so they will. If its helpful, ask a friend who is business savvy to come with you.

 

Don't think you can do anything regarding the hard pulls.

Message 7 of 20
Anonymous
Not applicable

Re: Dealership refusing to use my DCU loan. Help?

OMG...This sounds all too familiar. This exact thing happen to me just 2 weeks ago. The only difference is I put a deposit on the vehicle to hold it and the gave me the buyers order and I sent it to DCU myself. DCU sent my check and I took it to the dealership and was actually there to pick up my new vehicle. I made sure not to sign ANYTHING that authorized a credit check because I knew they would try that trick. They tried 4 times and I told them no. Next day I wake up to myfico alerts 7 hp's. The guy stole my ssn from the DMV paperwork. I am giving them until 2/13 to handle it before I file a complaint. What they did to you was totally illegal. There was no need for them to run your credit. How did they get your ssn? Did you sign something that authorized them to check your credit?


@Anonymous wrote:

So I thought I did everything right before going to buy a car. I was approved for a loan through DCU at 4.99% They told me all I needed was for the dealership to upload the purchase and sales agreement and they would issue payment. I found the car I wanted, sat down at the dealership with my loan, and everything went to hell. I'm so confused.

 

First they told me since DCU is on the East coast (I'm in AZ) they were "probably closed" and they would start on "other paperwork" They had me fill out a form without telling me what it was, then came back 10 minutes later with my credit report. **bleep**. The guy tells me "Your scores are pretty low (652) but I can get you a rate around 10%" I'm like...um, I already have financing, I told you that, I just need you to send the purchase agreement to DCU. So they leave to do something else and on a whim I call DCU. And they promptly answer. They aren't closed after all, surprise! The very nice lady at DCU tells me what I already know...they need the documents either faxed, uploaded, or emailed to them from the dealership and they will proceed with my loan. The dealer says okay, just take the car home tonight (it was getting late at this point) as a free rental and we'll figure this out tomorrow. We want you to drive the car around anyway and see if you like it. So I did.

 

The next day I wake up to 8...that's EIGHT...new hard inquiries on my CR from every lender on the planet, apparently. Even worse, they weren't all coded as auto loans, some said "business loans". The dealership still hasn't uploaded the documents to DCU. They left a voicemail saying they "found me a good rate" but when I called back after work they had gone home for the night.

 

Do I take the car back tomorrow morning? How do I get the hard inquiries removed? Why are they so determined to finance me themselves when I have perfectly respectable financing already approved through DCU? Do I have to buy the car since I've been driving it for two days? I have spent so much time on these forums improving my score so we could get a third car as my son just turned 16. I'm completely disheartened that I may have screwed myself (my score already dropped significantly with these 8 hard pulls). Any help would be greatly appreciated.


 

Message 8 of 20
Anonymous
Not applicable

Re: Dealership refusing to use my DCU loan. Help?

They had me fill out a form I thought was the purchase agreement, but was actually a credit application. I'll admit I got very flustered and didn't read the forms, just filled them out. Obviously not a smart move. I told them plainly I didn't want their financing, though.

They did indeed send me home with the car as a rental at zero charge, I just took it back to them this morning. An entirely different team was there to greet me, apparently the managers of the employees I dealt with earlier in the week. They seemed deeply apologetic and wanted to make the situation right. I was fully prepared to tell them to shove the keys you-know-where, then they offered to knock a few hundred off the price of the car and add 2 years free oil changes. I told them I wasn't signing anything else until I had the purchase agreement in my hand to upload to DCU myself. They gave me the whole thing, including their copies, and said I could bring it back once DCU cut the check and finalize from there. 30 minutes later, my loan status is "ready for funding" and I'll hopefully be driving my new Azera this weekend.

Let this be a lesson to all the noobs like me out there. I know I'll be a whole lot more careful with my SSN and signature in the future. Thanks to those of you who took the time to reply. I need a glass of wine.
Message 9 of 20
Anonymous
Not applicable

Re: Dealership refusing to use my DCU loan. Help?


@Anonymous wrote:
They had me fill out a form I thought was the purchase agreement, but was actually a credit application. I'll admit I got very flustered and didn't read the forms, just filled them out. Obviously not a smart move. I told them plainly I didn't want their financing, though.

They did indeed send me home with the car as a rental at zero charge, I just took it back to them this morning. An entirely different team was there to greet me, apparently the managers of the employees I dealt with earlier in the week. They seemed deeply apologetic and wanted to make the situation right. I was fully prepared to tell them to shove the keys you-know-where, then they offered to knock a few hundred off the price of the car and add 2 years free oil changes. I told them I wasn't signing anything else until I had the purchase agreement in my hand to upload to DCU myself. They gave me the whole thing, including their copies, and said I could bring it back once DCU cut the check and finalize from there. 30 minutes later, my loan status is "ready for funding" and I'll hopefully be driving my new Azera this weekend.

Let this be a lesson to all the noobs like me out there. I know I'll be a whole lot more careful with my SSN and signature in the future. Thanks to those of you who took the time to reply. I need a glass of wine.

@Anonymous,

 

Congrats to finally sticking it to those goonettes that run that dealership.

Message 10 of 20
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