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

[rak320]

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......

[GreatLife]

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......

---

[NoMoreE46]

---

@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

[CreditCuriosity]

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

[AndrewF]

---

@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".

[FicoMike0]

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

[FlaDude]

---

@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.

[cashorcharge]

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.

[dfwxjer]

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. 

[sccredit]

---

@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.