topic Re: Scammed? Or Approved? in Auto Loans

Scammed? Or Approved?

Anonymous — Mon, 19 Mar 2018 02:18:51 GMT

Hello Everyone,

EX Auto 8: 619
Gross Income: 44990
Rent:500 (1yr and 2 months)
Bad: 1 credit card delinquency settled In full (will be updated on Credit reports on 4/16)
Student Loans: 70K (deferred)

So I think I may have been scammed. I went to the dealer after test driving a couple cars their a week before. Decided I was ready to make a deal this past Saturday, the cost of the vehicle is $23,849. Put a down payment of $6,000, so financing $18,849. The bank the dealer is financing me with is Ally Financial at 14% (really no option at this point) . Waited a few hours, approved and signed paperwork. No conditional offer agreement,BCA, terminology in bill of sale or other documents. I am worried that I was lied too and only pre-approved through Ally Financial and the loan will fall through once further examination of CR is done . Worst part: The finance manager assured me all was well and told me to take the car home, and so I did.

Really need your input right now, thank you!

Re: Scammed? Or Approved?

Anonymous — Mon, 19 Mar 2018 02:25:28 GMT

They didn't register the vehicle with the DOL? What plates do you have on the car? Dealer plates or a temp tag?

Re: Scammed? Or Approved?

Anonymous — Mon, 19 Mar 2018 02:29:03 GMT

They put Temp PA window tag and plate on vehicle. The vehicle registration paperwork did not have the title info but everything else filled out. The car literally came back from the dealer off lease three days ago and were honest about the title being physically in transit by GM.

Re: Scammed? Or Approved?

Anonymous — Mon, 19 Mar 2018 02:32:31 GMT

@Anonymouswrote:
They put Temp PA window tag and plate on vehicle. The vehicle registration paperwork did not have the title info but everything else filled out. The car literally came back from the dealer off lease three days ago and were honest about the title being physically in transit by GM.

I think you're good dude. Thats not really a scam anyway. I mean they are a dealer and you do have a car as collateral. I dont think they want to take back your car anymore than you want to.

Re: Scammed? Or Approved?

Anonymous — Mon, 19 Mar 2018 02:36:34 GMT

Thanks, a little worried cause of the same day delivery on a Saturday. Also, never financed through Ally Financial, wasn’t sure I could get a definite answer on a Saturday afternoon.

Re: Scammed? Or Approved?

Loquat — Mon, 19 Mar 2018 02:41:59 GMT

Hi OP and welcome to the Forum!

I think you're good. Saturday or not, most applications are processed electronically. A good Finance Manager knows where he can hang a deal and get it approved. Ally Financial does prime as well as sub-prime so don't let the name of the lender cause you to worry...they're a full spectrum lender.

What the dealer did is commonly know as a "spot delivery" which means that they're confident that they'll hang your deal with finance company, and you won't typically receive title information until the deal is funded by the bank. This can take up to 4 weeks. Don't worry to much and congrats on your new vehicle!

Re: Scammed? Or Approved?

Anonymous — Mon, 19 Mar 2018 02:58:53 GMT

Thanks! Appreciate the feedback.

Re: Scammed? Or Approved?

bigpoppa09 — Mon, 19 Mar 2018 04:26:23 GMT

I would have used that 6K downpayment and bought a decent used car while u worked on your credit.

Re: Scammed? Or Approved?

Anonymous — Mon, 19 Mar 2018 04:40:05 GMT

The car is used and needed something very low mileage for work...I actually have been working on it since I hit rock bottom 4 years ago. Due to a serious CC Collection. Young and dumb I guess on that part. Held myself to a tight budget since then and took as much overtime as I could get sometimes a second job to pay off debt, pay ahead with bills, and pay some interest off student loans....Still recovering though. I’m still a little anxious over the car financing based on my previous history. They made it “appear” to be a non-issue.

Re: Scammed? Or Approved?

Anonymous — Thu, 22 Mar 2018 00:17:02 GMT

Update:

Today I got a call from Ally's Contract processing and Underwriting office. I was not able to answer and will be reaching out tomorrow morning. Should I be worried?!?

Re: Scammed? Or Approved?

Loquat — Thu, 22 Mar 2018 02:03:28 GMT

@Anonymouswrote:
Update:

Today I got a call from Ally's Contract processing and Underwriting office. I was not able to answer and will be reaching out tomorrow morning. Should I be worried?!?

See my response in your other thread Call from lender after purchasing vehicle

Re: Scammed? Or Approved?

Anonymous — Thu, 05 Apr 2018 07:19:29 GMT

this is similar to my situation. I have dealer plates though. When i signed the paperwork, i asked the finance manager if the finance special (0.9%) was good with Toyota Financial, he said yes. My sales guy said DMV was having an issue with the system and i should have my new plates soon. Today(8 days later), when i called about my plates, the sales guy said there was one minor issue with receiving funding that’s why i don’t have the plates. Now I’m confused. After googling, everyone is mentioning a “spot delivery” deal. I am not sure if it’s legal in CT but in they did have me sign a loaner vehicle agreement for the dealer plates. The box in the corner says registration pending. However, i am not sure if the “agreement” constitutes as a conditional financing agreement.

Re: Scammed? Or Approved?

Anonymous — Thu, 05 Apr 2018 16:15:33 GMT

They called to either confirm your purchase and financing, tell you to bring the car back to the dealer, or increase your APR %. If there was no finalization from the underwriters the moment you took the car home, there's no way to guarantee the car is yours until you make your first payment.

This happened to me when I bought my last car. The dealer will get you hyped about the car, let you take it home with a "pre-approved" contract that has not been looked at by the financing company/underwriter. So I had my car for about a week and was called by the finance manager at the dealer I bought the car from. He informed me he had bad news. Which ended up not being so bad. They had to increase the APR by 1.2% from 3.5% "pre-approval APR". So I had the option to go back to the dealer, pick up my down payment and return the car or just take the 1.2% more. Luckily I was dealing with an ethical dealer, rare right? They ate the 1.2% in the cost of the car in order to compensate for the APR % loss I had. Long in the short, it really just depends on the dealer you buy your car from. I've been to and heard about really sketchy dealers. There are dealers in my area that will sell you a car and loop you into a 72 month loan at 24% APR.

The most effective thing to do to get a lower APR is to ask what the APR would be if you shorten the auto loan term. Say if you had an approval for 60 months at 10%, ask what the APR will be for a 48 month loan. You'll be pleasantly surprised, that extra 12 months takes a toll (in a good way) on that APR, bring it down to maybe 5% APR. Of course, this all depends on your credit situation.