Frequent Contributor
Hammer23
Posts: 428
Registered: ‎01-21-2012
Re: Auto loan advice from an Underwriter

webhopper wrote:
As a GSM have you ever handled a NFCU loan check?
I'm using my NFCU loan check. The car was ordered Friday. I'm taking delivery overseas... does NFCU pay the dealer off of the VIN # and make/model of the car? We wont have a vehicle title til about 6 weeks after European delivery as the car will be in transit from Sweden to the US.

My dealership was worried that they would not get funded 30 days before I leave for Sweden; the program requires the car dealership to be paid at least 30 days before we fly out

 

I have in fact. NFCU checks are normally presented as a draft to the dealer with conditions that the dealer must meet both before cashing the check and after. Before the check cashes, there are normally restrictions on collateral type, age, and miles. If all of those are met the dealer can cash the check as long as they agree to the after sale conditions which are normally title and registration related. These normally include requirements for the dealer to present a completed title with NFCU's valid first lien within so many days (normally 30-45 days). Other conditions would be no lemon law or salvage vehicles, etc.

 

If the dealership takes too long to present the titkle or the car is a salvage or a buyback vehicle, the dealer must pay the loan off per their agreement when they cashed the check.

 

Being that your car will not have a title for an extended period of time, you would want to contact NFCU and see if this will be an issue. The dealership will more than likely not allow you to use the check if there is a timeframe that they cannot meet as they are financially liable to NFCU at that point. They will more than likely attempt to make you go with financing that they arrange through their captive. If this is the way you have to go, I would not worry, because you can always refinance with NFCU after the car arrives in the states.

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