***UPDATE***I just learned my car is a Spot deal! HELP!!!!!!

[Schoolbuskid]

So I purchased my new car on April 12th. The dealer said I was approved by Capital One Auto and to be looking for welcome package in mail.

I have yet to receive anything so I call them and ask what’s the problem. They claim they can’t verify my employment (I’m 1099). I originally submitted bank statements for proof of income.

Well somehow they screwed that up and think I only make 1908 a month. Mind you that’s only one of my paychecks. I average between 3600-3900 a month.

So today I call and said I can take the car back she said it doesn’t matter to them because they don’t own it at this point.

So my question is what recourse do I have? Can I just return this car? I know I’ll have to if they can’t prove income. The dealer still has my trade in and my new car is still listed on the website.

I kinda wouldn’t mind if I came out of this with out a car or payment at all. They can keep my trade in, Honda has already been paid off lol.

[Anonymous]

Yes, it’s a spot deal but it doesn’t sound like a “spot deal scam”.

They are actually trying to get you approved from the lender they said would approve you, Capital One. 

Go go to the dealership with you bank statements. Sit down with the finance manager and close the deal.

You mentioned Capital One and 1099. I’m somewhat familiar with Cap1 and 1099. Unfortunately the problem is Cap1 not the dealer. Here is what Cap1 does not tell you on the navigator site. They say a 1099 employee can use bank statements but what they don’t tell you is that they look at the bank statements for ONE consistent source of income. If you get income from multiple 1099’s the system only counts one. That’s why you need the finance manager. They can get on the phone with Cap1 and push the deal through. But you have to go in and show them all your sources and explain Cap1 is only counting one of them. Good luck.

[Schoolbuskid]

I contacted my finance mgr he said he's working on it. He already has bank statements from the night of the initial purchase. I only receive ONE source of 1099 income, the problem is they are only seeing one deposit, instead of two.

I tried explaining this to the lady today, but she wasn't getting it. Thanks for your help! 

[Schoolbuskid]

So i've had the car a month now, i just found out last week that it was a spot deal. The bank has been trying to verify my employment and income, i am 1099. So i've been back and forth with the dealer, bank, employer all this week. 

The cap one approval will expire on Sunday, i will have to return the car which is totally fine. They have already paid off my trade in.

I really just want to return the new car, shake hands and be done. Do you think that's how it will go? Should i worry about the trade, is there any legal stuff i need to be concerned about? 

My credit is also not the best so cap one was one of few banks to approve, so the dealer has no other options. 

This is the first time this has ever happened to me, thanks in advance!

[Anonymous]

Most states have a 4-10 day rule. (My state is 4). Basically it says if they can not secure financing for you in X days the contract is legally cancelled and you have to return the car. This is usually more than enough time for a finance person to go to their backup option.

Just return the car. Reapply with Cap One and go to another dealership. This one sounds incompetent. Or they are botching things intetenionally because they are not getting a good kickback from Cap One.

 Car financing is different than most types of credit. If Chase turns you down they are not going to try to get you approved at BofA. Car buying, most times anyway, they work diffent lenders until they find one. The terms may not be great (you can always decline) but I’ve never heard of dealership trying to get a deal done with one particular lender for a MONTH. They usually will move on to another lender so fast it’s usually the customer who wants to slow things down.

Again, return the car....move on to another dealership.

[DaveInAZ]

Well, you learn something new all the time on MyFico, I had to Google to find out what a "spot deal" or "spot delivery" was.

Any progress? Sounds like a mess, I would think after a month your trade-in is gone, which would be a big mess.

[Schoolbuskid]

Yeah they actually still have my trade listed on website. It was a brand new lease, but I’m not concerned with getting it back. I have another vehicle at home I can drive.

I will return the car on Monday, Save the $713 car note plus $243 in insurance and work on paying down my Credit cards.

If all goes well and I just get to walk away, this whole ordeal has been a blessing in disguise.

Thanks again!

[601flyguy]

Update?

[Schoolbuskid]

Well on Sunday May 12 the day my approval was set to expire they miraculously got everything worked out. Cap one sent me my statements so it’s official.

Thank you all for the advice!

[coreysw12]

From your previous posts it kind of sounds like you have buyer's remorse, but I'm glad it all otherwise worked out ok and I hope you enjoy the new car.

My most recent car was a spot deal, too. But it went a different direction. Dealer called me up and told me they couldn't secure an approval on the loans terms we agreed to a week earlier (when I took delivery of the car), but that he managed to secure a loan with Kia Financing that actually had better terms than what I had originally agreed to. My monthly payments ended up being $40 less than what I thought it would be when I originally got the keys.