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Financing denied after buying car?

Regular Contributor

Re: Financing denied after buying car?

I had the same thing happen when we bought my wifes van. Tured out to be a term issue. The F&I guy put the loan in for 75 months, which my bank declined, but they approved the loan for 72 months. I got the AA notice a week after we took the van home and about had a heart attack. You're ok. Espeically if they've already funded the loan.

 

[[[Current Scores (2/12/2017)-662EQ/666TU/673EX (FICO8)]]] (Started at 510EQ/530TU (CK) (5/2015) )
Message 21 of 41
Valued Contributor

Re: Financing denied after buying car?

OP, I am sure you are fine, if the funding fell through you would have gotten a phone call right away.  They cannot change the terms so I am sure you have a loan.  

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
Message 22 of 41
Community Leader
Senior Contributor

Re: Financing denied after buying car?


pooneej wrote:

I never got a call back from the finance department at the dealership, so I emailed the salesman who sold me my car.    He said that the car was already funded and I should be getting paperwork from the bank (I'm going to guess Ally).   Thats all he said and tomorrow (monday) I'll call Ally and ask them if I have a loan there as my first payment is coming up pretty soon (3/15).

 

I bought the car on 2/18 and that denial letter was dated 2/23.  Its likely that what JGGM suggested 12 may have gone on.   Automatic denial letter , then they call UW's and expain situation - I did put over 50% down (traded in a car).

 

Will find out more during the week and will keep everyone updated.  Thank you all !!!  Feeling a little less worried now.


Thank you for sharing your story with us. Do you have any additional updates?

Gardening since xx/xx/xx Gardenversary xx/xx/xx Score: 08/21/17 EQ 781 TU 784 EXP 789
Current Score: 781
Goal Score: 800
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Message 23 of 41
New Member

Re: Financing denied after buying car?

Hello all.   I'm sorry for not updating = 

All is fine, the letter mustve been an autogenerated one and the dealership probably called the UWs the day of the deal to push it through. 

 

I've already made the 1st payment so I'm all set.

 

Thank you everyone and will be asking for more assistance cleaning up the mess I've made after letting things go after a divorce.

Message 24 of 41
Community Leader
Senior Contributor

Re: Financing denied after buying car?


pooneej wrote:

Hello all.   I'm sorry for not updating = 

All is fine, the letter mustve been an autogenerated one and the dealership probably called the UWs the day of the deal to push it through. 

 

I've already made the 1st payment so I'm all set.

 

Thank you everyone and will be asking for more assistance cleaning up the mess I've made after letting things go after a divorce.


I'm glad everything worked out in your favor pooneej and thanks for the update.

Gardening since xx/xx/xx Gardenversary xx/xx/xx Score: 08/21/17 EQ 781 TU 784 EXP 789
Current Score: 781
Goal Score: 800
Take the myFICO Fitness Challenge
Message 25 of 41
Member

Re: Financing denied after buying car?

I worked at Toyota and was a finance manager for years.  What most people do not understand, is that most cars that leave the lot, have not been approved for credit. A matter of fact, almost no ones application has been submitted. So really, almost 100% of the time the financing (Unless you have it done through your own bank, or are paying cash) is actually not approved. BUT, based on your credit, and what the dealer/finance manager/sales manager believe will get through and get approved. Now, if there were a deal that we were skeptical on, we would never let the car roll off the lot until the bank approved it first, so we didn't have to take the car back. Some things were approved through the system automatically, but again, once the customer leaves, then the finance manager submits all the information to the bank. Lastly, I don't know your exact situation, but they should have at least set you up, so to speak for a denial, or not let you leave with the car at all. It's tricky, and I hated that part of the industry. 


Message 26 of 41
New Member

Re: Financing denied after buying car?

Hi: thanks cincy - -  so yes my situation isnt good.  571 score.  

But I think how they got it through manually was because my trade in covered 60% of the new car purchase price.  

 

Message 27 of 41
Regular Contributor

Re: Financing denied after buying car?

I am glad things worked out with your situation.  It is a bummer to get that letter of denial.  What is worse when you drive the car off the lot and all of sudden a week later you get a call from the dealership saying they want the car back due to customer not being forthcoming with the FM.  What was bad was the customer was upfront with salesman about the repo on record but the salesman said not to say anything to the FM cause everything would be ok.

I had to turn in a Chevy Sprint Turbo with 500 miles on the odometer cause the salesman tried to pull a fast one on the FM and I was the one to get burned along with the dealership.  And I had a similiar situation with a Kia dealership which let me drive off the lot with a new Soul for about 3 weeks without financing being approved, should have been suspicious of that deal. 

Congrats on getting the car.

BK Discharge Nov 2, 2015

CS Nov 2--Sept 83
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Message 28 of 41
Valued Contributor

Re: Financing denied after buying car?

Thanks for sharing the story. This thread provides some insight to the financial process when credit is less than perfect.

Glad this all worked out for the positive!

Message 29 of 41
New Contributor

Re: Financing denied after buying car?

interesting stuff.  i am curious if when you go for the promo financing at dealerships are there different rules?

 

i just got a car from mazda for example with the 0% deal.  i would think all the problems with financing at that point would lie on them and not the dealership?

 

if google is correct for me in california they have 10 days to secure financing on deal or to make me return it.

 

chase is their underwriter and i have a good history with them so i have a feeling there is more than meets the eye.  i was just paying a chase card last night in main account area and noticed the car note appeared without me doing any work, haven't got any paperwork or plates in the mail yet!  i wonder if that means im good Smiley Happy

 

i had a terrible experience at this dealer but needed to get something while out of town.  after the things they said after trying to bait and switch i know scummy lying dealerships exist.  i wonder if they are even legally supposed to inform people of their rights instead of threatning people and trying to get them to finance a worse deal vs. just giving the car back.

Message 30 of 41