topic Re: A network of Dealerships that won't take NFCU pre-approval checks in Auto Loans

A network of Dealerships that won't take NFCU pre-approval checks

rak320 — Mon, 28 Jul 2025 14:40:18 GMT

I had an interesting experience over the weekend. A small network of dealers in Kentucky simply refused to take our NFCU pre-approval check. They said they don't take unsigned checks that aren't made out to the dealership.

I was like, "huh?"...once a deal is made I sign the check twice, its gets made out to the dealer and then they call NFCU and verify the funds.

It was wild...They said they have been "burned" by NFCU too many times....

I replied to the sales manager, " The largest credit union in the nation has burned you too many times?..." that doesn't make sense, maybe its y'all not NFCU...

He wasn't amused, we left and bought our daughters car elsewhere......

Re: A network of Dealerships that won't take NFCU pre-approval checks

GreatLife — Mon, 28 Jul 2025 16:11:37 GMT

Perhaps a more helpful question could've been, "HOW has the largest credit union in the nation burned you too many times?"

Maybe the answer would make this make sense.

@rak320 wrote:
I had an interesting experience over the weekend. A small network of dealers in Kentucky simply refused to take our NFCU pre-approval check. They said they don't take unsigned checks that aren't made out to the dealership.

I was like, "huh?"...once a deal is made I sign the check twice, its gets made out to the dealer and then they call NFCU and verify the funds.

It was wild...They said they have been "burned" by NFCU too many times....

I replied to the sales manager, " The largest credit union in the nation has burned you too many times?..." that doesn't make sense, maybe its y'all not NFCU...

He wasn't amused, we left and bought our daughters car elsewhere......

Re: A network of Dealerships that won't take NFCU pre-approval checks

NoMoreE46 — Mon, 28 Jul 2025 17:26:53 GMT

@rak320 wrote:
I had an interesting experience over the weekend. A small network of dealers in Kentucky simply refused to take our NFCU pre-approval check. They said they don't take unsigned checks that aren't made out to the dealership.

I was like, "huh?"...once a deal is made I sign the check twice, its gets made out to the dealer and then they call NFCU and verify the funds.

It was wild...They said they have been "burned" by NFCU too many times....

I replied to the sales manager, " The largest credit union in the nation has burned you too many times?..." that doesn't make sense, maybe its y'all not NFCU...

He wasn't amused, we left and bought our daughters car elsewhere......

It does happen. Here is another thread:

https://ficoforums.myfico.com/t5/Auto-Loans/Since-When-Does-BMW-Not-Accept-an-NFCU-Loan/td-p/6616782

Re: A network of Dealerships that won't take NFCU pre-approval checks

CreditCuriosity — Mon, 28 Jul 2025 21:15:13 GMT

Likely the dealership/finance manager doesn't like not making point from auto loan is my guess.

Re: A network of Dealerships that won't take NFCU pre-approval checks

AndrewF — Tue, 29 Jul 2025 01:32:26 GMT

@CreditCuriosity wrote:
Likely the dealership/finance manager doesn't like not making point from auto loan is my guess.

It's amazing how many corrupt moving parts there are in car sales.

My mom honestly did not understand when I explained to her that when you ask the dealership to find financing for you, they get kickbacks and may steer you to a loan that isn't the best you could have found for yourself, because they get money from the bank for steering them customers.

The only reason to let the dealership do financing is if you get some STUPID low interest rate from the car company's factory financing that nobody else can beat on a new car. Like, if they will do 0% then you won't beat 0%.

There's also the case where maybe you can only get a loan from a lender that likes dirty customers and doesn't ask a lot of questions, but that's not always a good thing just because you got the car.

The dealership is back there trying to take money from every pot they think they can get away with, not just giving you the highest possible price on the car, including mystery fees, finance room junk, and lenders that "they work with".

Re: A network of Dealerships that won't take NFCU pre-approval checks

FicoMike0 — Tue, 29 Jul 2025 01:37:44 GMT

Should've asked the finance mgr how big'a boy he is.I

Re: A network of Dealerships that won't take NFCU pre-approval checks

FlaDude — Tue, 29 Jul 2025 18:07:40 GMT

@AndrewF wrote:
The only reason to let the dealership do financing is if you get some STUPID low interest rate from the car company's factory financing that nobody else can beat on a new car. Like, if they will do 0% then you won't beat 0%.

The manufacturer for our last car was advertising 0.9% financing, even then I still got pre-approval from my CU before going to the dealership (obviosly for more than 0.9%). In the end had no trouble getting the 0.9% manufacturer financing but did the research to know my options ahead of time.

Re: A network of Dealerships that won't take NFCU pre-approval checks

cashorcharge — Tue, 29 Jul 2025 22:16:12 GMT

In the future.....you can get preapproval from NFCU and then make your deal with the dealer and NFCU will FedEx certified funds to the dealer versus handing over the blank/preapproval check.

Re: A network of Dealerships that won't take NFCU pre-approval checks

dfwxjer — Fri, 01 Aug 2025 13:51:05 GMT

A lot of dealerships are shying away from credit unions because they don't fund timely. Dealerships are usually paying their current floor plan with incoming sales, and if they have to wait 2-3 weeks with funding delays, they don't have the capital to float their business in the interim.

Credit Unions are notoriously a pain in the rear to work with behind the scenes. A lot of dealerships just won't deal with them these days and I believe we'll be seeing this trend increase until CUs can improve their efficiency.

Re: A network of Dealerships that won't take NFCU pre-approval checks

sccredit — Mon, 04 Aug 2025 19:38:57 GMT

@dfwxjer wrote:
A lot of dealerships are shying away from credit unions because they don't fund timely. Dealerships are usually paying their current floor plan with incoming sales, and if they have to wait 2-3 weeks with funding delays, they don't have the capital to float their business in the interim.

Credit Unions are notoriously a pain in the rear to work with behind the scenes. A lot of dealerships just won't deal with them these days and I believe we'll be seeing this trend increase until CUs can improve their efficiency.

Every credit union financing I have done over the last 10+ years the credit union overnighted the check directly to the dealership once the contract was in hand, normally within 48 hours of delivery of the car. Since 2012 I have purchased 9 different cars with 6 different credit unions (PenFed, Navy, Logix, CalCoast, Altura, Orange County's CU) and payment has never been more than 48 hours from delivery.

The one I did last month was done via CUDL and the dealer had their funds electronically from the CU within 48 hours.

Add to that - the RISA has an "Option to" portion of the contract that if the Credit Union doesn't fund within however many days that the dealer can fund via their lender. When we did my wife's car they gave us 5 days. They had the check in 2.

IMO and IME the idea that credit unions don't fund timely is pretty far fetched.

Re: A network of Dealerships that won't take NFCU pre-approval checks

CreditCuriosity — Thu, 07 Aug 2025 13:34:36 GMT

@dfwxjer wrote:
A lot of dealerships are shying away from credit unions because they don't fund timely. Dealerships are usually paying their current floor plan with incoming sales, and if they have to wait 2-3 weeks with funding delays, they don't have the capital to float their business in the interim.

Credit Unions are notoriously a pain in the rear to work with behind the scenes. A lot of dealerships just won't deal with them these days and I believe we'll be seeing this trend increase until CUs can improve their efficiency.

Not sure what CU's these are as PenFed or NFCU will give you a blank check. When bought porsche they made me use BofA one of their preferred lenders. Later that week I just refi'ed with NFCU for a better rate and the F&I guy lost his points/commission off my rate. Sorry for him but they make money so many different ways as they have no loyalty to you nor do I do to them and their little games.

Re: A network of Dealerships that won't take NFCU pre-approval checks

NoMoreE46 — Thu, 07 Aug 2025 18:12:00 GMT

I believe that if one pays the dealership loan back in < 90 days, they lose that back end incentive/deal.

@cashorcharge or @CreditCuriosity
might know the structure of how this works.

Re: A network of Dealerships that won't take NFCU pre-approval checks

CreditCuriosity — Thu, 07 Aug 2025 18:00:25 GMT

@NoMoreE46 wrote:
I believe that if one pays the dealership loan back in < 90 days, they lose that back end incentive/deal.

@CreditCuriosity might know the structure of how this works.

Pretty much correct although can be on a gradual scale but overall you are correct i beleive dealership said to me at least with BofA

Re: A network of Dealerships that won't take NFCU pre-approval checks

cashorcharge — Thu, 07 Aug 2025 18:36:55 GMT

@NoMoreE46 wrote:
I believe that if one pays the dealership loan back in < 90 days, they lose that back end incentive/deal.

@cashorcharge or @CreditCuriosity
might know the structure of how this works.

Correct. My OEM FI's will charge a dealer back the profit they made off any interest if their loan is paid off between 30-90 days....the banks have different criteria.

Re: A network of Dealerships that won't take NFCU pre-approval checks

Yasselife — Fri, 08 Aug 2025 01:31:56 GMT

Sounds like the dealer was looking for an excuse to push their own financing. NFCU has millions of members and a solid reputation; if they’ve truly been “burned,” it’s far more likely due to the dealer not following the funding process or wanting instant payment without the extra verification step. Refusing a pre-approval from the largest credit union in the country says more about their priorities than NFCU’s reliability. You definitely did the right thing by walking and buying elsewhere.

Re: A network of Dealerships that won't take NFCU pre-approval checks

AndrewF — Fri, 08 Aug 2025 04:42:58 GMT

@Yasselife wrote:
Sounds like the dealer was looking for an excuse to push their own financing. NFCU has millions of members and a solid reputation; if they’ve truly been “burned,” it’s far more likely due to the dealer not following the funding process or wanting instant payment without the extra verification step. Refusing a pre-approval from the largest credit union in the country says more about their priorities than NFCU’s reliability. You definitely did the right thing by walking and buying elsewhere.

It sounds super sketchy to me. A car dealership that doesn't want money sounds like a really odd car dealership.

It's a good thing there's only like a billion others.

Re: A network of Dealerships that won't take NFCU pre-approval checks

dfwxjer — Fri, 15 Aug 2025 14:33:44 GMT

@CreditCuriosity wrote:
@dfwxjer wrote:
A lot of dealerships are shying away from credit unions because they don't fund timely. Dealerships are usually paying their current floor plan with incoming sales, and if they have to wait 2-3 weeks with funding delays, they don't have the capital to float their business in the interim.

Credit Unions are notoriously a pain in the rear to work with behind the scenes. A lot of dealerships just won't deal with them these days and I believe we'll be seeing this trend increase until CUs can improve their efficiency.
Not sure what CU's these are as PenFed or NFCU will give you a blank check. When bought porsche they made me use BofA one of their preferred lenders. Later that week I just refi'ed with NFCU for a better rate and the F&I guy lost his points/commission off my rate. Sorry for him but they make money so many different ways as they have no loyalty to you nor do I do to them and their little games.

Funny you mention PenFed as I took their blank check to BMW last year when I was getting my new car. They confirmed what I've heard here on the bank side in that dealers are less thrilled to work with CUs these days. The blank check is a seemingly seamless experience for you and I, but on the back end it's just a pre-approval letter for the dealership. They still have to create the loan on the CU side, and fund the dealership through their normal channels. Funders still have to clear the deal on the back end and fund the dealership.

Thankfully BMW was able to beat PenFed's rate in my situation and I certainly have no loyalty to any bank or dealership. I'd do the exact same thing you did if I could get a better rate. F&I guys make plenty of money so I'm not worried about my deal not lining their pockets.

Dealers don't like working with Cap1 Navigator for the exact same reason.

Re: A network of Dealerships that won't take NFCU pre-approval checks

nccarguy1 — Thu, 11 Sep 2025 13:58:29 GMT

If they have been burned they need better managers. The documents are very specific about LTV and calling for approval code. If done correctly no one gets "burned". They want you to finance with them.

I'm a dealer.

Re: A network of Dealerships that won't take NFCU pre-approval checks

dfwxjer — Thu, 18 Sep 2025 18:40:12 GMT

@nccarguy1 wrote:
If they have been burned they need better managers. The documents are very specific about LTV and calling for approval code. If done correctly no one gets "burned". They want you to finance with them.

I'm a dealer.

It's not that they're getting burned, it's that the CU funding takes longer than they're wanting to wait. Dealerships that I've dealt with the past few years are cash poor, and funded deals are what keep the floor plan afloat. I was less than impressed when I saw behind the scenes.

Are you with a franchise dealership or independent owner?