Refusing dealership financing - can I lose my car/down payment?..

[p-]

I've used the car buying service therough USAA and Penfed.  The first time through USAA I did it all over the internet, and showed up at the dealer to pick up my car.  They wanted me to app with their finance department because they thought they could beat the rate, but backed off when I told them what it was.  Why would I take a higher rate, even if it's only half a point when I already have approval?  I was out of there within an hour.

I did the same thing with Penfed on my wife's recent car purchase, a certyified used Toyota.  I got a verified Out the Door price through email, and set up a delivery appointment to accept the car pending my inspection.   I had to pay a few bucks for Penfed to overnight my loan check, but I walked into that place ready to accept delivery and pay in full.  The finance manager really pushed the added warranty, but the certified used warranty was too good to consider the aftermarket crap one.  I had to pay a few bucks for Penfed to overnight my loan check, but I walked into that place ready to accept delivery and pay in full. 

The only time I would ever accept dealer financing is if it's a manufacturer subsidy, like if Honda had a zero percent deal or something.  In fact, I would advise next time that you wait to even see the dealer and sign papers until they have the car on hand. If you like the car and the price, get your loan from USAA and never talk to these guys again.  If they give you any crap, demand a refund and shop elsewhere.  With USAA you can get a car miles away.

[p-]

I'll probably never do a traditional car deal again.

[recordaras]

Yeah, this is definitely a lesson learned for me... I have family members that do the same and refuse to so much as talk about anything other than processing the quoted price at the dealership and now I very well understand why. 

My other mistake was that I thought that it was pretty much over once you're past the sales guy and the mysterious "manager". After that I kind of relaxed a little, thinking that it was smooth sailing from here, now all that's left is to refuse the add-ons they offer and see if they can beat USAA. By the way the finance guy even got out a calculator trying to show me how little of a difference their "extra" APR would cost me per month... Implying that I was being cheap for caring about little things like that. Pffffft. 

[StartingOver10]

As you discovered, the finance department is where the real hard sales begin. That is where most of the profit is in the deal for the dealer - the financing and the add on's. Plus, some unethical finance people actually increase the vehicle sales price on the contract thinking you won't read the contract, just sign it!

Even if yuou went in with a check from USAA or any other lender read every word of the contract so you don't get blindsided.

[taxi818]

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@StartingOver10 wrote:

As you discovered, the finance department is where the real hard sales begin. That is where most of the profit is in the deal for the dealer - the financing and the add on's. Plus, some unethical finance people actually increase the vehicle sales price on the contract thinking you won't read the contract, just sign it!

Even if yuou went in with a check from USAA or any other lender read every word of the contract so you don't get blindsided.

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+1

[recordaras]

Thanks for all the information and advice! At this point still waiting to hear from them. Got a call yesterday from a manager at the dealership telling me that I "missed" an appointment to come in and finalize financing that ended with a "So, are you buying a car from us or not?". I explained that not only had I not heard from them since I was last in (and nobody actually notified me of this appointment that I had "missed"), I wasn't planning on dealing with financing till the car was in their lot. He promised to get me an update on the timeframe and get back to me right away and of course never called back... 

At this point we're giving them till next Tuesday, and if there is still no car we'll be asking for our down payment back and heading to another dealership. The other guys have a white Fit on their incoming list that I'd much rather put a deposit down on, and while it's a couple hundred more and an unpredictable wait I'd rather get the color I want and not give my business to the ones we're currently dealing with. 

What a ridiculous adventure! I assumed that I was pretty much a dream car buyer: good credit, hefty down payment... But apparently they don't enjoy doing business with people that read fine print.

[Hoya08]

If you want the car the dealership is trying to get for you, I'd suggest you contact the sales manager to give you a satisfactory update by COB or you're placing a stop payment on your deposit.  That will get them moving on your schedule instead of theirs.

[Anonymous]

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@Hoya08 wrote:

If you want the car the dealership is trying to get for you, I'd suggest you contact the sales manager to give you a satisfactory update by COB or you're placing a stop payment on your deposit.  That will get them moving on your schedule instead of theirs.

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That's good advice.  I'd only say that because the vehicle is actually produced in Japan it can be very difficult for a dealership to pinpoint an exact date because of how long shipping takes and delays at the port.  It's much easier to track a vehicle assembled in the US.  I'd definitely make sure that the vehicle has been produced and shipped and not just ordered.