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Member
mindaugas
Posts: 12
Registered: ‎03-12-2009

How do you verify financing?

Long story short the dealer said they could beat the rate I got from my credit union so I let them give it a shot. I did NOT take the car home because if financing falls through I have to pay a bunch of fees. Plus it was a Sat night and no banks were open, all they can get is automated pre-approval. The finance guy was very pushy about taking the car home so I'm worried he'll give me a call today and say everything is good even though it's still in the approval process. 

 

How can I verify financing is completely approved from the bank? Do I just give them a call and verify it? 

Moderator
Revelate
Posts: 8,159
Registered: ‎12-30-2011

Re: How do you verify financing?

[ Edited ]

mindaugas wrote:

Long story short the dealer said they could beat the rate I got from my credit union so I let them give it a shot. I did NOT take the car home because if financing falls through I have to pay a bunch of fees. Plus it was a Sat night and no banks were open, all they can get is automated pre-approval. The finance guy was very pushy about taking the car home so I'm worried he'll give me a call today and say everything is good even though it's still in the approval process. 

 

How can I verify financing is completely approved from the bank? Do I just give them a call and verify it? 


Maybe I'm missing something but what fees if the financing falls through?  It's either bring a check or return the car (and get your downpayment certainly back); in this case you'd just show up with the CU's check and all is right with the world again.

 

The dealer wants to sell you the car, if you didn't take it home, you didn't buy it is my understanding of the transaction.  You can't verify to my knowledge and I wouldn't even worry about it: I think it's easy grounds for legal action if they blew it.

 

It's a pretty common practice for dealers not to have financing in hand when you leave the lot, also some dealer services arms of lenders don't work traditional banking hours either.

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Member
mindaugas
Posts: 12
Registered: ‎03-12-2009

Re: How do you verify financing?

It may be different in other states but every car I have purchased in CO has a section in the documents you signed stating you will pay $50/day and $.50/mile if you bring the car back. On top of that, this dealer actually has a $500 restocking fee. This has also happened to me before and is fairly common practice. A few days after you buy the car the dealer calls you and says they cannot get the loan done unless you put another $1k down or the interest rate is going to be higher, something along those lines. When you say ok I'll bring the car back they throw those fees at you. So the safest thing to do is leave the car there until financing is finalized. 

Established Contributor
sccredit
Posts: 770
Registered: ‎09-14-2012

Re: How do you verify financing?

Normally the contract is subject to financing.  The restocking fee is if you decide to rescind the contract.  In your case you would simply take the CU check in to pay for it if the dealer's financing falls through.  

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Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: How do you verify financing?

According to this article on edmunds, you can ask for a copy of the confirmation from the finance company.  http://www.edmunds.com/car-loan/dont-fall-prey-to-spot-delivery-scams-and-yo-yo-financing.html

 

As others have mentioned, the fact that you are already approved by your CU insulates you from really being taken advantage of.  This is mostly a problem for people with borderline credit who do not or cannot line up any alternative financing.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
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Member
mindaugas
Posts: 12
Registered: ‎03-12-2009

Re: How do you verify financing?

I'm just paranoid based on past experience but that was when I had much worse credit. Dealer said I was approved Monday so I got the car that night. There will always be that fear in the back of my mind of a call until I get the packet from the bank

 

Those are great articles Walt_K, thanks for sharing. 

New Contributor
maximiliano
Posts: 65
Registered: ‎11-25-2013

Re: How do you verify financing?

Any updates from the dealer? I'm on a similar boat, I told the dealer numerous times that I wanted to leave the car but he insisted that I would get my money back if the financing didn't go through. I purchased the car on friday, and still haven't heard from any bank or from the dealer and I'm wondering if I should call and check, or sit tight and be patient =D


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Member
mindaugas
Posts: 12
Registered: ‎03-12-2009

Re: How do you verify financing?

I called Chase bank where the dealer said the loan was through, they could not confirm the loan because it hadn't been processed yet. It takes 3 or more days for the dealer to send the loan packet over to be processed and serviced. I took the car on Monday this week and have not heard from dealer or Chase. 

 

I don't think you need to worry as long as you have strong credit. In my case I'm a little more confident since I know I can always fall back to my CU or find financing somewhere else. Part of me actually wanted financing to fall through because I should have shopped around more for a better rate. 

 

My paranoia stems from past experiences when I had horrible credit. But then again I've never had to actually bring the car back, just come up with more money. This is the first time I have purchased a car where I not only qualified for the lowest rate my CU offerred, but I also didn't have to put anything down. 


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