topic Re: F&I. Ask away in Auto Loans

F&I. Ask away

Anonymous — Fri, 12 Apr 2013 12:54:36 GMT

I work in F&I, willing to answer any questions you may have.

Re: F&I. Ask away

Anonymous — Fri, 12 Apr 2013 14:29:43 GMT

Re: F&I. Ask away

Anonymous — Fri, 12 Apr 2013 22:41:58 GMT

Having recently gone through the anxiety of being "spot delivered" and stressing for a week until the loan funded, I'm wondering how often financing falls through? Do you usually know for sure that you will be able to sell the RISC when you spot deliver a vehicle?

BTW everything worked out fine in my case, but I was pretty anxious for a few days.

Re: F&I. Ask away

Anonymous — Fri, 12 Apr 2013 23:35:02 GMT

Financing can fall through for a few reasons. The most common reason is customers lying on their application. If the customer states they pay no rent, or make xx money, or have worked at their job for x years, and that verifies to be untrue, then financing will fall through. This also is embarassing for the dealership financing manager as it makes them look like a liar or an idiot.

The second reason it can "fall through" is from a bait and switch. Some deceptive dealers will put a customer out on a rate they know is not true, and wait for them to fall in love with the vehicle, then call them to resign and say that the bank did not approve their loan or some other lie.

Re: F&I. Ask away

Anonymous — Fri, 12 Apr 2013 23:48:34 GMT

Hi,

This is my first time buying a car, so I'd like to know couple things.

I was told that if you bring your own financing, it is required by law that dealership still have to run your credit.

-I know that, but is it a different kind of credit check i.e. background to see if your a terrorist or something? (Is it a hard pull)

-They ask you to fill out out the credit paper, but if you don't want to finance with them, do you still have to fill it out? Can dealer still run your credit for rates even if you say you don't want no one else to finance you?

-If you have your own financing, you don't have to see the F&I. Is that correct?

Haha a lot of questions.. but its actually 1 question broken to parts.

Re: F&I. Ask away

webhopper — Mon, 15 Apr 2013 23:47:53 GMT

Eve23 the dealership does not have to pull your credit. Mine didn't.
I didn't fill out the credit application. I brought my loan docs and navy fed loan draft check with me to the dealership.

Re: F&I. Ask away

Anonymous — Wed, 17 Apr 2013 21:47:33 GMT

@Anonymous wrote:
Hi,

This is my first time buying a car, so I'd like to know couple things.

I was told that if you bring your own financing, it is required by law that dealership still have to run your credit.

-I know that, but is it a different kind of credit check i.e. background to see if your a terrorist or something? (Is it a hard pull)

-They ask you to fill out out the credit paper, but if you don't want to finance with them, do you still have to fill it out? Can dealer still run your credit for rates even if you say you don't want no one else to finance you?

-If you have your own financing, you don't have to see the F&I. Is that correct?

Haha a lot of questions.. but its actually 1 question broken to parts.

We do not have to run your credit but we do have to do an OFAC check. It is to check against a database of terrorists. Your social is needed, but has nothing to do with credit.

It is up to the dealership whether you must see F&I or not. Any dealership that does not require this is losing tons of money as F&I is the most profitable part of the store.

Re: F&I. Ask away

Anonymous — Thu, 18 Apr 2013 14:57:05 GMT

I'm going to be in the market for a new car soon and I currently have pretty high credit card balances and student loan debt. I always pay on time and have a FICO of around 700 - do you think I will have trouble getting financing? Would it make more sense to concentrate on paying down the credit cards or coming up with a bigger down payment?

Also, do you think I would stand a better chance of getting approved from Capital One Auto Financing or through a dealer?

Thanks for any info!!

Re: F&I. Ask away

Anonymous — Thu, 18 Apr 2013 15:33:19 GMT

@Anonymous wrote:
I'm going to be in the market for a new car soon and I currently have pretty high credit card balances and student loan debt. I always pay on time and have a FICO of around 700 - do you think I will have trouble getting financing? Would it make more sense to concentrate on paying down the credit cards or coming up with a bigger down payment?
Also, do you think I would stand a better chance of getting approved from Capital One Auto Financing or through a dealer?

Thanks for any info!!

Pay down the credit cards, then save up a down payment while you wait for the new balances to reflect on your credit reports. Get a preapproval from a credit union, then have the dealer try to beat that interest rate.

Re: F&I. Ask away

Anonymous — Thu, 18 Apr 2013 15:56:39 GMT

Thanks for the good advice! Do you know if credit unions do a hard pull when you join?

I don't have any inquiries in the last 2 years and I'm trying to keep it that way until I get the auto loan.

Re: F&I. Ask away

Siopao — Thu, 18 Apr 2013 18:33:38 GMT

@Anonymous wrote:
Thanks for the good advice! Do you know if credit unions do a hard pull when you join?
I don't have any inquiries in the last 2 years and I'm trying to keep it that way until I get the auto loan.

NFCU hard pulled TU for me when I joined.

Re: F&I. Ask away

Anonymous — Thu, 18 Apr 2013 20:32:00 GMT

@Siopao wrote:
@Anonymous wrote:
Thanks for the good advice! Do you know if credit unions do a hard pull when you join?
I don't have any inquiries in the last 2 years and I'm trying to keep it that way until I get the auto loan.
NFCU hard pulled TU for me when I joined.

Some credit unions hard pull for membership, but not all. You will have to ask them before you join.

Re: F&I. Ask away

Anonymous — Fri, 19 Apr 2013 21:07:37 GMT

@Anonymous wrote:
I'm going to be in the market for a new car soon and I currently have pretty high credit card balances and student loan debt. I always pay on time and have a FICO of around 700 - do you think I will have trouble getting financing? Would it make more sense to concentrate on paying down the credit cards or coming up with a bigger down payment?
Also, do you think I would stand a better chance of getting approved from Capital One Auto Financing or through a dealer?

Thanks for any info!!

DTI is a huge factor in getting a car loan. I am thinnking by having a 700 score that you must have a decent utilization rate. As long as you have the income to cover it, you can have all the debt you want.

Also, dealers have much more "pull" then an individual applying for a loan.

Re: F&I. Ask away

Anonymous — Tue, 23 Apr 2013 20:37:43 GMT

I recently financed a used car. First time ever.... I did do homework first, was aware of my credit scores/report, and the fair market value of vehicle. I feel I got a great deal as far as the price of car, managed to deny many add in dealer fees such as, "the appearance package" for 499.00 LOL what a joke.... but anyhow, was easily able to say, "no thanks" and was given a "no problem" No one tried to sell me warranties, additional insurance, nothing.
The only part of the deal I thought may be unfair was the interest rate. Here is my question;

If you ask the finance guy, "I would like to see the buy rate," (learned that from google) "and I would like to know the spread between the buy rate and this rate you are offering me" He said that the rate I was seeing, was the same as the lender was offering. That there was no packing on at all. I insisted I wanted to see it, he insisted the information isn't available for disclosure.... I said, "well, just show me the computer screen" he said, "that is not allowed, not my rule, but the lenders."

Truth? or Lie? are consumers protected with any RIGHT to know the rate originally offered by the lender?

Re: F&I. Ask away

SamsungHDTV — Wed, 24 Apr 2013 00:24:59 GMT

@Anonymous wrote:
I work in F&I, willing to answer any questions you may have.

First of all, you're awesome for doing this. Sharing consumer knowledge, I just feel like is doing the right thing.

Here's my question:

1. Why does F&I want to see my total loss statement from my insurance company? (I had totaled my car)

2. When I showed it to her a few days later, she managed to add-in paint and dent protection for like $600, but keep my drive out price nearly the same. Actually she said I needed to pay her $3 cash. So I offered her my credit card, she then said she'll cover it. She played with the numbers, and it looks like I traded in my car, and then she paid off a non-existing loan, and somehow I paid $600 less in sales tax. So she basicaly washed out tax and added in paint and dent. I didn't care because it's like I'm getting free protection for showing her a piece of paper. It just seems so unethical on her part so I really want to know what's behind this?

I repeatedly asked her what she wanted to see it for. All she would say is pick a product you want and don't worry. She wouldn't answer me directly. Hope you can shed some light.

Re: F&I. Ask away

StartingOver10 — Wed, 24 Apr 2013 00:29:13 GMT

Mothership3, the F&I guy lied to you.

When we went though the rough period in 2008 and all the finance protections were added to disclose to the consumer for yield spread on the interest rates the auto financing dealers got an exemption. They don't have to disclose anything essentially. So they lie. That's why you really want to have an approval from a credit union before you shop for vehicles. The interest rate is negotiable but many people just accept what the dealer F&I guy says....its a shame.

Re: F&I. Ask away

webhopper — Wed, 24 Apr 2013 01:45:46 GMT

@StartingOver10 wrote:
Mothership3, the F&I guy lied to you.
When we went though the rough period in 2008 and all the finance protections were added to disclose to the consumer for yield spread on the interest rates the auto financing dealers got an exemption. They don't have to disclose anything essentially. So they lie. That's why you really want to have an approval from a credit union before you shop for vehicles. The interest rate is negotiable but many people just accept what the dealer F&I guy says....its a shame.

Mothership3,

I think you can contact a Credit Union and find one that will base the rate off of your scores instead of your husbands... That way you'll be getting a much better rate.

Try DCU for starters, also check with local credit unions in your area...

If you look around, you can go ahead and refinance it, or just use the credit unions loan instead of the loan offered by the dealership.

Re: F&I. Ask away

Anonymous — Wed, 24 Apr 2013 05:44:50 GMT

@Anonymous wrote:

Truth? or Lie? are consumers protected with any RIGHT to know the rate originally offered by the lender?

No consumer protection for this at all.

Margins on cars can be rather slim, margins on loans can be huge. Sometimes negotiating one thing can just cause something else to get changed.

It is all a matter of places for the dealership to find more income. It is up to the consumer to shop around for the loan just like they are shopping around for the vehicle. No discloser for the rate is requires, just like the dealer is not required to disclose the cost to them for the vehicle.