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Denied financing after taking car home!
01-07-2007, 12:30 PM
We bought a new car/SUV and financed it with the dealership shortly before Christmas. We have excellent credit and got a good rate (4%). Had a little trouble with the dealer on another issue and refused to bring in additional information they requested until our complaint was dealt with. Needless to say they didn't deal with our problem in a timely manner and later said that they no longer needed our additional info. because paperwork had been sent out to bank. This week we received a letter from the Finance Co. saying our car loan had been denied. We've had the car now for about 3 weeks. What should we do? Can they repossess it? Make us refinance at a higher rate? Can we legally return the car since the financing was denied? I'm panicking that the dealership now has us by the ... and can force us into some kind of bad deal. [We could pay for car with cash if necessary].
01-07-2007, 05:50 PM
That happend to a friend of mine's sister...it was like a month later and she had to take the car back. She couldn't've paid cash for it or anything so I don't know if things would work out differently.
01-07-2007, 08:09 PM
Thanks Andy, thought we were the only ones -- been scouring the Internet and can't find any similar situations.
So what exactly happened to your friends sister -- the dealer just took the car back from her? Did they offer any refinancing? did she loose any money?
I'm sort of hoping that we've now got an edge of the Dealership who tricked us into a service contract we didn't want. When we went in to talk to them about changing the contract they told us that it had already been "financed" and there was nothing that they could do. A week later we get a letter saying that we are NOT actually financed. Really wondering is this is all legal.
Right now, I'm a little scared that they'll show up with a tow truck and take it back for leverage to get us to sign a new contract. We're so mad at Hyundai right now that we really wouldn't care, except that we've put $5000 down and we want that money back.
01-07-2007, 08:22 PM
don't be mad at the car maker, be mad at the dealer. what i would do is take it back, abd tell them that you don't want it or you have fallen fianaclly(sp) unstable and you need the money back.
or i would take to a lawyer
01-07-2007, 08:35 PM
She knew the salesman so if there was any sort of penalty she probably got out of it...
She ended up going to a different stealership and bought a different car.
01-10-2007, 01:17 PM
This makes me so mad. I do own a business that helps people buy cars and make sure that cant happen to them. I will honor the rules and not advertise it here, but I will give you some free advice. It is an old scam that today is rarley used in dealerships.
Part of the paperwork you signed states that if financng can not be approved you are required to pay x amount of dollars for the time you had it. 3 weeks is insane, a dealer will know usually immediatley if your approved or not, it is all done by computer statistics. In the rare case a human needs to review it the answer comes back within 24 hours.
There is simply zero excuse for 3 weeks.
With that said, I would return the car to the dealer, I would not pay cash for it because they do not deserve your business. But yes you do need to either resign at the higher interst rate, pay cash or walk away. You can not simply keep it and hope the problem goes away
Feel free to e-mail me if there is anything else I can do
01-11-2007, 12:19 AM
Since you say your credit is good did you consider seeking alternative financing outside the dealer? There are a lot of choices out there for financing such as your local bank, or even better , a credit union. I just bought a vehicle at a dealer back in October and sought out financing before I went shopping for a vehicle. My credit union approved me for a loan at a specific rate,(my credit is excellent) and the loan officer went further and told me if I found a better rate at the dealer I plan on purchasing it from, they would beat the dealer's rate by 1/2%.If you really want that vehicle, you could try to find alternative financing before going back to the dealer to resolve the problem.
01-14-2007, 07:27 PM
I just PM'd you salesman :)... I am new here first day but I am dealing with this issue as well... or think I might be.. any advice would be helpful here.. I never heard of this until this week
Here is a copy of my mail to exsalesman... glad I found this forum. .this has been bugging me for days!!! To be honest it has taken the thrill out of buying my new car (the first one in over 11 years).. I am afraid to fall in love with it!!!!!
I am in a similar situation.. bought a new car last week.. had credit issues in the past.. but not in the last four years.. we wrangled the interest rate..i am self employed and my accountant does my schedule C based on the business... not personal.
The underwriter told me (he called to ask a question).. that as long as my line 12 of the 1040 and line 31 of the C (I may have that backwards) matched I would be fine (he was with cap one).. he asked for the front page of the 1040 and the C) for the last two years.. If they request additional tax documentation (would they?) I am not going to provide 80 pages of my tax return to some stranger.. sorry but that is NOT information they need.... it would only confuse them more (when I bought my house I had to find a lender who used to be a CPA, HE got it.. the average underwriter turned it down because they didnt understand what they were seeing)
...this return will make NO sense. unless he is just looking at those two numbers...if he starts going through it (do they?) it is confusing.. I have had accountants that didnt get it.. and most CPA's do and so does the IRS who is the one that really counts.. lol
they didnt care about my P&L's
Anyway I thought everything was fine.. now I find out after I have the car that I had to sign a paper saying I needed to return the car if my financing didnt go through.. ??? I assumed it did..
I asked about this. he said.. should be fine. if it were not we wouldnt let you drive a 36K vehicle off our lot.. okay he has a point.. I did check the paper work and there were NO fees if this happened and I also asked.. they stipulation is they return the trade in and down payment)... anyway.. can you tell me what are the chances of this happening.. I have NEVER seen this before until now... while I was in the office a lender called on another customer.. she had her car 45 days and they were still asking for documents 45 days???? Either I have the car or I dont.. any ideas on this would be great...
also something else has me really wondering.. after I wranged down the interest rate from some laughable number.. I signed the papers.. walked out .. the deal was done.. the finance guy called me Friday to tell me he reworked the deal.. same terms but a lower interest rate and was going to come by my office Monday (tomorrow) .. it will lower my payment and I am an HOUR away.. Why would he do that.. this bugs me too.. why lower it when the deal is done.. I am not complaining but does this seem odd to anyone else???
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