Financing denied after buying car?

[Anonymous]

If the dealer hasnt contacted you yet then its just the one finance company that denied you.  In my case, the dealer/finance department sent out my app to a lot of different lenders and I got worried when I saw the one denial.  (I had no idea they blast out the loan applicaton to so many lenders)

Let us know how it goes.   

[Anonymous]

So here is my story ... I had a jeep wrangler 2016 leased (through ally bank) - that i wanted to trade in to take anew car , back last year in early Dec 2017 i went to dealership they took my jeep and let me drove off in a new jeep grand cherokee but my family didnt like it so i returned it back no issues. Then i went to them again at the end of dec 2017 to trade in the jeep again and this time i took dodge durango(on lease again) and they told me you can take the car now and the paper work will be completed later on. 
I came back on jan 2 2018 to do all the paper work and every thing was sorted out i signed every thing and i was informed enjoy your car. Only to know that by jan 11 i got a letter from ALLY bank (let me know that they application was declined). I haven't recived my lisence plates as of now. I have called the dealership multiple times and they keep telling me that they have resubmitted the documents and for some reason its not going through and they are working on it.

My first payment of the new car was scehduled for 1/21 , and im already 5 days late. I dont know at this point in time if i have to return the car back or just wait for dealers to get back to me. 

[Dalmus]

Perhaps the Moderators can make this its own topic so it doesn't get lost.

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wrote:

So here is my story ... I had a jeep wrangler 2016 leased (through ally bank) - that i wanted to trade in to take anew car , back last year in early Dec 2017 i went to dealership they took my jeep and let me drove off in a new jeep grand cherokee but my family didnt like it so i returned it back no issues. Then i went to them again at the end of dec 2017 to trade in the jeep again and this time i took dodge durango(on lease again) and they told me you can take the car now and the paper work will be completed later on. 
I came back on jan 2 2018 to do all the paper work and every thing was sorted out i signed every thing and i was informed enjoy your car. Only to know that by jan 11 i got a letter from ALLY bank (let me know that they application was declined). I haven't recived my lisence plates as of now. I have called the dealership multiple times and they keep telling me that they have resubmitted the documents and for some reason its not going through and they are working on it.

My first payment of the new car was scehduled for 1/21 , and im already 5 days late. I dont know at this point in time if i have to return the car back or just wait for dealers to get back to me. 

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 Check your credit report.  Check it for free at annualcreditreport.com (that's the Federal site that let's you get a free copy of your report rom each bureau once a year) and see if you have a loan that is reporting.  If you do, call that company and figure out the payment issue... You don't want a late reporting.

 The longer you wait, the more chance there will be that your original trade in gets sold and can't be returned to you, opening up a whole other can of worms to deal with in case the dealer comes back and says they can't do financing after all, or they can, but under new terms (that you don't like).

[Anonymous]

I know this is an old post that got brought back alive but here is my experience on this situation.

The letter you recieved is not a denial from the lender that financed you, you do in fact have your loan through Ally and all is well. The denial letter is sent anytime a bank does not approve the structure the dealer sent over, if the bank counter-offered the dealer and the dealer went with that conditional approval, the lender still is required by law to send out a letter stating the reason's for denial of the original request.

These letter's, are sent by lender's for the following reason's: Complete denial (declined your application) or any counteroffer made by the bank.

Let's say the dealer sent the application through with the following structure:

Sales price: 25,000

Net trade: (equity or inequity in trade-in vehicle) -1000

down payment: 2000

term requested: 72 mo's

 amount to finance on front end of deal (excluding back end products) = 24,000    (25,000+1,000-2,000)

The bank send's a counter offer:

Max allowable front-end financed: 22,500

term: 66mo's

The bank did not approve the submitted structure and by law must send out AA letter's stating the denial reason's for the requested structure to the consumer.

Dealer is able to make the counter-offer call work, or they call the lender and speak with an underwriter to get a manually underwritten approval for the original structure. Sometime's they have luck with this, sometime's they have to get the difference out of you in cash, or increase the ACV (actual cash value) of your trade-in, or simply take less profit or even lose money on the deal to make the counter-offer work.

Many people get worried when recieving letter's from the lender they financed with after the fact stating a denial but there isn't an issue, if there was an issue be assured the dealer would be the first person calling you wanting their vehicle back rather than the lender sending out a letter many weeks later.

[Dalmus]

Excellent description!

My concern for the OP is that he stated he's 5 days late for the original payment date.  I assume that means he hasn't gotten a payment book or account number or other details he needs to make a payment.  He still needs to find out if a payment is due and pay it before the (typical) 10 day grace period, right?

[Kree]

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wrote:

Excellent description!

My concern for the OP is that he stated he's 5 days late for the original payment date.  I assume that means he hasn't gotten a payment book or account number or other details he needs to make a payment.  He still needs to find out if a payment is due and pay it before the (typical) 10 day grace period, right?

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OPs about 300 days late at this point. I hope is was worked out...

[Dalmus]

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wrote:

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wrote:

Excellent description!

My concern for the OP is that he stated he's 5 days late for the original payment date.  I assume that means he hasn't gotten a payment book or account number or other details he needs to make a payment.  He still needs to find out if a payment is due and pay it before the (typical) 10 day grace period, right?

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OPs about 300 days late at this point. I hope is was worked out...

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Okay, not the ORIGINAL OP... the op of the current disccusion regarding Ally, which he just posted today. 

[Anonymous]

I find it hard to believe if he signed paper's on 1/2/2018 that his payment would already be due on 1/21/2018. Typically dealer's defer your first payment for atleast 30 day's but normally 45 day's from contract date. In addition most contract's have a 15 day grace period before a payment is reported late to the CB's.

If funding has not been completed on the contract then there shouldn't be any liablility on your part as it's not an enforceable contract if the lender is not willing to accept it.

I would think if the dealer is really worried about not obtaining financing they would be ringing your phone off the hook trying to get the vehicle back.

I would say that you recieved a AA letter from Ally because of a conditional approval (counter-offer) and that when you called the dealer, may be the deal is held up in funding over some sort of clerical error or they are trying to push stipulation's through such as POR/POI.

Trust me when I say, I would only be really worried if the dealer was constantly calling me trying to get their vehicle back, your best course of action would be to call Ally Financial's customer service line and expressing your concerns and explaining your situation in hopes that they have the answer's you want. They should be able to tell you what's going on and if you need to make your payment.

[Miner]

If you called the fiance department at the dealer and they aren't worried and demanding your car back as you aren't fianced, then you have nothing to worry about.  Any car loan will usually give you at least 30 days to make the first payment; sometimes even more since it takes time to establish the account.  In the past, a car I financed through GMAC now Ally, took 45 days before I got the paper work to pay it.  I had called them around the 30 day mark saying I was told I had to pay it around 30 days, but hadn't got my paper work and was worried about being late. and they said not to worry about it as it wasn't in their system yet so I couldn't be late.  And it did work out just fine in the end.

I just bought a car on Nov. 24.  My first payment was due on Dec. 24 and Chase had the paperwork to me 10 days before it was due.  Prior to getting the paperwork from Chase, I got a letter in the mail from Wells Fargo (that the dealer had shopped) saying my loan application was denied for the following reasons.  But as I knew their name wasn't the one on my contract I signed, I wasn't concerned. I did get a call 4 days after I bought it from the dealer's finace department to provide some follow up paperwork that proved my residency for the loan.  If there is ever a problem with the follow up on a loan, the dealer will bend over backwards to get it solved as they don't want the car returned to them with the extra miles on it.  And they would have known about it within a few days and would have contracted you.  As for getting the license plates, it took me 6 weeks to get mine despite having only been given a 30day temp operating permit.

[Anonymous]

My 25 year old daughter just bought a new car, her first major purchase. She has an excellant credit score, not perfect, but close. She's had the car for 3 weeks, long enough to sell her old car. She received a letter from the dealership saying they could not finance her as promised. She thought it was a scam and threw the letter away. She has a copy of her contract and finance information. Her payment is still the same as agreed on the website. My brother received the same letter when he purchased a new car. I think this is a scam by the car dealerships. They did a credit check, arranged financing, took her money and signed a contract, and now want to change something. I don't think it is legal.