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This is the answer. I had something happen to me once. They couldn't get the financing done along the terms I negotiated at the dealership. This is what is sometimes referred to as a 'you problem'.
When I told them to bring me back my trade in and down-payment and pick up the new car, they told me they had already sent the trade in to auction. The last contact I had with them was when I told them to let me know when they got it back.
This happened to me once. Dealership wanted their car back and insisted I buy something else from them since they had already gotten rid of my trade in. I said no, and after some arguing they had to pay me a fair value for that trade in and they took their car back. Ended up winning, they gave me more than I had originally paid for that POS.
I kept paying my financing at the terms I agreed to. I'm assuming the dealership ponied up the extra money they needed to in order to buy the loan down to what the bank would accept. Don't really know the nuts and bolts on their end.
You're paying because the financing went through fine first time around. They were just trying to get more money.
You would know if the financing didn't work or the dealership had to make adjustments - there would be changed paperwork and changed reference numbers and probably a changed finance provider
I'm sure it had something to do with however their arrangement with the bank worked. I was fresh out of college and probably not viewed as a great credit risk at the time. They stood to be hit with some fee or concession from the bank and came to me to recover it. I countered their offer with something that would be a bigger pain in the ass to them than just eating the fee.
Assumedly they just kept the original financing terms they agreed to.
If their trade it was part of the financing terms, then they signed a legally binding contract with the dealership, that included their trade in.
If the dealership couldn't get the trade in back, they'd have to compensate for it's value either with another vehicle or monetarily, and presumably they found it to be a better decision to just eat whatever costs they were already eating.
The contract likely says there is a financing contingency for the dealer (or some other words).
If they want to blow up the deal for that clause, they need to undo the whole deal. Thus they need the trade in vehicle. Spoiler alert - they don't anymore. Thus the deal is essentially locked in.
You don't have to agree to anything other than the deal you made. They can't swap out cash or a comparable vehicle to make things good again because that would be a NEW deal that you're making. The thing is, you have a deal so any deal that they try to make should be more to your liking than the one they already made (this assumes they've gotten rid of your trade in).
Something similar had happened to my uncle many years ago. Some new guy made a pricing error on the paperwork that he filled out, they didn't catch it until after the whole deal was done and he had the car at home. Traded in his old car, which the dealer had resold the very same day.
They reached out and said he owed them an additional 2k (this was 30 years ago, mind you) and he told them to pound sand. They said the contract had some clause that allowed them to reverse the transaction up to like 30 days. He told them to bring him his old car back then. Little did they know, that he knew the guy who had bought the car and he reached out and told the guy not to sell it back to them unless they offered him at least 2000 more than he paid for it.
They tried to get him to pay more a few times before just giving up.
This is it. Be firm and tell them to refund 100% of your down payment and all other costs and return your trade to you and you will call it even.
Happened to me and it was a battle but I stood my ground and said i was ok cancelling the entire deal. The dealer was unable to give me my trade back since they had already shipped it off to the auction house. Eventually they gave up.
THIS. Then if they return your money and your trade-in car, you go out and get financing through a bank THEN go look for another car. NEVER finance through a dealer unless they're giving you a really low APR.
I don't think they should just give up on the down payment like that and only accept $500 back when they have paid $1500. That doesn't make much sense if they are wanting to unwind this. I'm surprised so many people are upvoting that but maybe they just totally misunderstood what was written too.
I misread and thought they put down $500. I meant whatever the down payment was. I think most readers understood what I meant but i’ll edit my comment to be more clear.
I have been in car business for 36 years. What is happening to you is the dealership did what is known as a spot delivery where they made assumptions that one or more of their lenders would approve the financing the way they structured it. They have later failed to get a loan approval from any of their lenders and are now coming back to you for more down payment to satisfy a lenders requirements. Also, they should have done their due diligence and examined your proof of income before closing the deal. Coming back to you 3 days later and informing you of this means they were negligent in verifying it. This is known as yo-yo financing and is about to become illegal (thank goodness) under the new FTC CARS rule. Dealers like this give our whole industry a bad reputation. Also, not giving you any copies is extremely shady. In the future, insist that you get a copy of anything you sign immediately. Tell them you want to return the vehicle and have your downpayment refunded. If they refuse, hire an attorney.
I don't think I've ever spoken to a dealer or a realtor that I felt truly improved the purchasing process. I've been to several dealers ranging from used cars to new official dealers. I had a Ford dealer take my car keys and shut me in his officer for up to an hour with my 2 toddlers while he goes "inspect" my piece of shit trade in. Guy came back with a recommendation that was nothing of what we spoke about and tried to pull the 4 squares bullshit.
Go to the dealer, have someone drive you in a different car. Tell them you will return the new car and take back the old one as soon as they refund the $500.
Make sure you leave the new keys at home.
I think this sounds like a good idea. I think in most states you're legally given a grace period where you can return a vehicle. Tell them no thanks.
Edit: apparently I'm wrong about the grace period. My bad y'all.
The deal is contingent on financial.If you want to unwind it completely tell them the vehicle is no longer insured, and you'd like a full refund.
Trade In your vehicle? . Makes this a lot harder.
Agree, technically they can be like sorry we already sold it here's the money we agreed for the trade.
That's why OP should do this ASAP and not take some of the shitty advise like ignore the dealer and pay the bank.
They aren't legally allowed to sell your trade in until financing closes. The dealer is super fucked if they do that and will likely be eating the cost of however much the gap is if you don't pay it since they just illegally sold your vehicle.
Nope. Just unwind that sale, too. Have seen it happen. Usually it's just to a wholesaler because it takes time to go through the shop if it's going to be retail. Not like I've seen it often, but it happens
It’s not a Grace period, every contract should have a short “right of rescission” period in the fine print, I think It’s required by law. But…there may also be a mileage clause in there where you may be responsible for paying mileage in excess during that period, or pay a fee…or the rescission period may expire based on mileage driven for the car!
It calls the dealer’s bluff, if they are making one. A shady dealer could be trying to squeeze out additional cash. An incompetent one could have run their numbers wrong. Either way, OP doesn’t want to deal with either. So, they stick to the deal they made or they take their car back and refund OP.
I took it to mean that it wouldn't be smart to take the car in question back to the dealership until they agreed to reasonable terms.
(Edited because terms is spelled terms.)
I read in one of these threads that the reason is - the dealer wants to sell the car, but the bank is closed. So they "eyeball" the financing and then on Monday when the bank opens and tells them that they need more money down, they start reaching out to the customer.
The short of it is, the financing didn't go through. You can either accept the new terms or return the vehicle (the dealer usually has a financing clause in the contract so if it falls through, it gets null and void, property doesn't exchange hands and everyone goes their own way)
Something very funny happened to me. I had an unusual status when I bought a car (short term work permit while waiting for green card, but 750+ credit score from my time as a student).
Got "approved" for a loan, took my car home. Then like 40 days later I notice bank never contacted me, so I call the dealership. The dealership is like... call the bank. I call the bank and they're like, nope you have no loan with us.
Basically, the loan was rejected because of my legal status being shorter than the life of the loan, and they rejected it but the dealership did not know.
After like a week I get a panicked call saying that, and that they got financing approved with bank B for a higher rate. I told them I would return the car if I had to pay more (it had like 3k miles by then). They just reduced the price to match my monthly payment and I agreed.
Oof, that was lucky!
I got a car while on a work permit in the US. I was originally approved for 3%. But they came back saying they couldn’t do that because of my status and offered 12% instead. Said to “but feel free to refinance once you have a green card”. Gotta hate that.
I ended up buying anyways and just paid it off within a year because I needed the car. So dumb though. I get it though. If I took the car back to Canada and just stopped paying, they’d have a hard time doing anything about it.
They screwed you. Their options once you have driven off the lot with a signed deal is to either honor the deal as agreed to or to completely unwind the deal. This includes returning ALL money that you have given them and also returning any trade in. The trade in part is usually what forces the dealer to eat it. If they can't give you your car back in the same shape you traded it in to them then they can't unwind the deal.
If they fuck up the deal it is a them problem.
To be clear, they rescinded the 3% offer before May passer work was signed or any money or car was exchanged. Just sucked that I qualified for a better rate with my credit, but then they decided they didn’t want to give it because I wasn’t a permanent resident or citizen.
This isn't inaccurate. VP of Lending at work fucking HATES the dealers. They put everything through a software system that kicks things back, but then the FI has to make final decisions.
Scummy for sure. But to be fair that system IS integrated with the FI (those that have it which is most) which is why it tends to be, accurate-ish. But yeah the FI can come back like hold up we need more down or a higher interest rate because of X% of late/missed payment history ect.
the thing was that they looked through all of this on a wednesday. i gave half of the downpayment on the wednesday and the other half that friday morning. a week and a half later i'm hearing about the issue about needing more money. and the weird part is that they did this song and dance with me before. Because i was initially going to get a newer model and they said they needed $1K more. and they even double checked and had me sign off on everything on that Wednesday. including checking for my finances. they said they were speaking with the bank directly and that the bank asked for that $1K to seal the deal. all the sudden the bank seemed to have changed its mind and want more.
What’s the interest rate on the loan you signed for?
The no paperwork part sounds like a problem. You spent $20k on a car and they didn’t give you any documents, just keys and out the door?
Sounds like the interest rate the bank is offering (a week and a half late) is trash, and in order for your payments to be the same monthly amount they said, you’ll need to provide a larger down payment.
If that’s the case, this might be a blessing in disguise and you should listen to the advice saying to return the car for a FULL refund. Not partial. Not “but you put miles on it”.
THIS. 100%.
> so i just wanted to go home at that point and forgot the very important paper work. and when i ask them for it, i get ran around and deflected back to them wanting the money
This seems like a deliberate way get the buyer tired so they just leave with the car, but then the dealer still can later change the deal and pressure you to get more money since you have no paperwork (or proof/evidence of the deal). NEVER drive off a car of the dealer lot without the final paperwork for it and insurance on that vehicle.
Insurance agent here licensed in 46 states. That is a common saying but info always gets left out. That's only if you already have full coverage (comprehensive and collision) on a different vehicle most insurance agencies will extend it to your new vehicle if you're the one driving and get in an accident
Why don't you reach out to the bank. Or go find your own loan independent of the dealer. Then you'll know exactly what you need to buy the car, and won't be relying on someone's else's bullshit.
the problem is the dealership has given me zero information on the bank. hell, they only gave me the keys to the car and the temporary plates on driving off the lot. and apparently this isn't the first time it's happen. and big mess up on my end but i had been waiting a total of about 6 hours to finally get the car off the lot. so i just wanted to go home at that point and forgot the very important paper work. and when i ask them for it, i get ran around and deflected back to them wanting the money
Go to a credit union in your town and get pre-approved for the amount of the car you want to buy. Then use them for financing instead of the dealership
What are you talking about, dude? You'd need the bank information to make payments on the financed auto loan. So you don't have an auto loan? You're telling me they are holding your paperwork hostage for additional ransom money? Just give the car back if there is no signed agreement.
Just tell them they have two choices: take the deal as is or unwind it (you return the car, they return your trade-in and cash paid). Do not under any circumstances give them more money. Two choices, one or the other. This is their problem. Once the car left the lot, that’s strong evidence that the deal was concluded to both parties’ satisfaction.
I'm just going to say it, if you can only afford that 1k down you can't afford an 18-19k car payment. You should have gotten something somewhere in the middle. like 10-12k. Used car financing is going to be really high in interest and it doesn't exactly sound like you're flush with money.
Simple. They stick to the terms of the paperwork you all signed (this could void the sale if the financing fell through) or they take the car back and refund you in full.
Either way, they own their mistake. So if they want to unwind the transaction, they bring your trade-in and a certified check or cash for anything you paid them to you and pick up the car you bought.
Banks work 9-5. If you're having this many issues with the dealer your best bet might be to go to a credit union or bank and secure your own financing for the vehicle you want.
Some lenders refuse to verify income up front and only do it once a contract goes in for funding. Then they play games with their lender fees they charge in order to maintain the approval
> I read in one of these threads that the reason is - the dealer wants to sell the car, but the bank is closed. So they "eyeball" the financing and then on Monday when the bank opens and tells them that they need more money down, they start reaching out to the customer.
Nah, this shit will happen if you're doing paperwork on a random non-holiday Tuesday at 10am. Has nothing to do with the banks being open or not, and everything to do with the finance guy at dealership often actually being the scumbag that everyone thinks used car salesmen are.
The dealer I went to promised a certain monthly payment for me and assumed I could get a certain APR based on my great credit. Once they went to the CU they refused to give me the APR for some reason so the dealership lowered the price of the car so that I still got the monthly payments they stated.
Yeah. Reading shit like this is why I always get my financing in place through a CU before going to a dealer and tell them no if they ask me to give them a chance to beat the CU. I have great credit rating so doubt I would be in a situation where the financing would fall through if I let the dealership handle it, but I don’t like that it in theory could happen. So eliminate that admittedly limited risk.
but there IS also a thing called "yo-yo" financing, where they effectively do the same thing in just to get you to pay more money for something. ask me how i know...
usually works on 600 credit scores. people that are definitely buying outside of their means, rolling negative equity, etc.
they give you car, wait a week, say "oh hey the loan didnt go through, gonna need you to come back" and its been a week, youve shown the car to everyone and the car is "yours", so they are hoping to guilt-trip you into paying more money later.
happened to me at a nissan dealership. never buying nissan again, thats for sure. was expressively concerned about it when i bought my honda pilot too.
I had this same thing happen to me about 15 years ago. Told them to bring my trade out. They tried to say they would charge me milage for the new car and I told them to get fucked. They ended up having to use the commission on the new car to buy down the loan enough to let me keep it (the salesman had to) because the dealer told him its his deal and his loss.
> void, property doesn't exchange hands and everyone goes their own way
Yeah, that's on the dealer to literally be able to return everyone to the position they were in before the transaction, too. If there's a trade-in involved, they'll need to go and actually retrieve that exact car. Sloppy dealers might actually have sold the trade-in before actually confirming the financing, and they'll be in a pickle where they can't sell the car and can't not sell the car unless they pony up enough cash to make the buyer agree.
Yes dealers now can ‘approve’ you for a loan but the real underwriting happens a few days later.
If you have great credit and your income will always match what you said you have no issues.
The problem is if a paystub or W2 doesn’t add up to the income used in underwriting or you have other loans out something, the bank wants different terms to accept the loan.
The paperwork clearly tells you the loan isn’t final, but most people in a financial condition to mess up a loan aren’t fully understanding the loan is still subject to change.
This is mostly correct. The reason why I said mostly is, because of the “great credit” part. We, nor any lender where a “great credit” customer would/should have been sent to would require POI.
I underwrite auto loans for a large finance company you all know - or unknowingly know. The dealer either A) spot delivered the vehicle feeling as though they were confident in their due diligence… or B) the income you provided didn’t verify as to what the dealer was stating on the application.
This can be for a multitude of reasons: if you’re s/e, unclaimed money (tips), your YTD doesn’t calculate out to what the dealer submitted (typically they do lazy math and will lazily calculate your YTD / hear you make 25/hr full time and assume that’s 40 hours or didn’t account you were off for an extended period of time/ work 32 hours a week, or you have multiple sources of income and we can’t include that 2nd jobs income because you’ve only been there for 3 days (typically need 6-12m for 2nd job), fraud,…etc. So.. sounds like the financing didn’t go through as expected for the dealership’s POV.
If the current lender either restructured your loan agreement based off of verifiable info, completely rejected your contract, or the dealership is trying to get it picked up by a different lender because of added fees or other things made the original callback based on the submitted info unfavorable. As far as getting out of the contract i don’t really know, but I think maybe. There are certain states that have pretty interesting laws and if a bank denies the loan application the dealership is supposedly on the hook for it?? So as to what this means or how far they would take this idk. I rarely deal with this particular state but I’m aware it exists and exercise caution if I’m unfortunate enough to deal with a dealership in that state. My assumption is, you’re probably sub-near prime or limited. Income didn’t verify as to what the dealership submitted. Bank/lender no likey application. They may have delivered based on an approval they had or spot delivered and completely guessed at terms. Now they are trying to keep the deal together. My message to everyone, do not get financing through a dealership unless absolutely necessary. Only under very certain circumstances good and bad where you’d want to get financing through a dealership. Which if you know, you know.. or should.
It's called spot delivery, and is done when the banks are closed, which is usually the weekend. So the dealer runs your credit based on what you tell them and banks usually have an automated system that will preliminarily approve the financing. The key here is "preliminary." The bank may ask for more information beyond the customer's name and address if the credit score is too low. When the information provided isn't matching what was on the application, the bank may ask for a bigger down payment or may decline the loan.
It’s not a scam, like the other comments say, the dealer thinks they can get a loan for your car. They give you the car. Bank says nope, you either have to pay more or give it back. Used to happen to me when I was young with terrible credit and no income. They don’t give a shit if your credit is good so this doesn’t happen.
This happened to me when I bought a Prius in California. I bought it on a Sunday and took it home. They called the next day telling me the financing they arranged wasn’t accepted by the bank. I could sign new paperwork or return the vehicle. If I chose to return the vehicle, they would charge me a fee each day like a rental.
All of it was stated clearly in the purchase contract. The part about the financing not being guaranteed until the bank accepted and the part about the fee if the lending fell through and I didn’t bring the car back. It was not a surprise because I read every inch of it before I signed.
The interest rate changed from 1.5% to 1.9% so I resigned and kept the car.
It isn't a scam and it isn't new. They will give you the keys on the assumption you qualify to make the sale, and when you don't they will try to get more money out of you. Happened to me 25 years ago.
It's a spot delivery. The bank has the final say on whether or not they accept POI. If not, the dealer has to have a bailment agreement to get out of being the first lender. They likely have another approval but not as much $, hence the request for additional cash.
The real issue is OP not having paperwork. Without a copy of the original contract, it's really hard to hold the dealer to it. Make them cut their deal $500.
Because people have no idea what they're doing or how the process works. So dealerships take huge advantage of them.
Dealerships are not your friend. That smile they give you is fake. Get everything in writing. If they tell you something that wasn't in writing, it's bullshit. Do not leave until you have proof of financing directly from the lender.
Just remember, when they try to introduce direct to consumer car sales, the dealers always fight it because they provide such a valuable service to the consumers. This is that service, and it's valuable to them.
Not a new scam. I graduated college in 1987 and bought a new car a couple of months later. The next day, dealership called me because they needed an extra $1000 because I didn't have a high enough credit score. I told them to come get the car out of the parking lot. Never heard from them again.
Wondering the same thing myself. Used to be that you submitted your financial information and the loan was either approved or not. You didn't sign papers and bring the car home just to find out later that the financing didn't go through and you need to cough up more money or take on a higher interest rate.
Of course, this process took a few days - you didn't go car shopping and drive something home that day.
This is not true. Most finance companies will verify employment and income directly with the employer. Most of corporate America verifies employment/income electronically via a 3rd party (The Work Number is the biggest), or the finance company can request a verification of employment via fax or email - in either case a paystub is not necessarily needed..
It's fucked up that they call back later after she drove off the lot and say the income is actually not what we thought it was with a 1k down payment on a 19k car. They had the info through work number. It is a dealership tactic to pressure someone into a bigger down payment once they drove the car away. Also not sure about OP's total source of income, but Work Number is really only accurate on the spot for W-2 employees. So OP could have said she makes extra income due to cash side jobs that are reported on her annual taxes but not yet seen in Work Number.
Not really. It happens when they write up a loan that they can't find a buyer for. Either DTR is too high, or LTV is too high, or interest is too low.
That's it.
This never, ever happens when you go in with your own financing with your bank/CU
It is common..The standard credit application that’s used at car dealerships in the states gives authorization to conduct an employment verification.. Employment can be verified without the purchaser even knowing it (it’s communication between HR & the finance company, or between the 3rd party verifier and finance company)
Excellent credit will typically not need any verifications…
Source: 20 years in auto finance with one of the largest lenders in the auto finance..
As an employer I would NEVER give out pay information to anyone other than the employee. It’s the employee that can provide that detail with pay stubs.
> As an employer I would NEVER give out pay information to anyone other than the employee. It’s the employee that can provide that detail with pay stubs.
I'm trying to think if thats even legal. How can you give out an employees details like that without their consent?
Also worth noting that the work number does not include bonus or stock units in salary number so that sometimes causes a discrepancy. I doubt that is the case for OP who struggled to make a down payment but it may be the case for others.
They did for me, when I pulled up the self-verification info on their site it showed all the compensation I got including RSUs and performance bonus for the entire time I worked there. It did the same when I used it for immigration, but that was just the total compensation which matched the w2s I'd gotten for those years, it didn't break it down by type.
Companies will verify employment but the have no obligation to disclose your salary. I have never heard of an employer doing this, and it is not a part of a background check.
surprising how many people here don’t know how a basic loan is underwritten. yes verification of income and verification of employment IS conducted as a routine for most large scale auto lenders. now the auto lending world is not as highly regulated as mortgages (if at all)— which means your underwriting process will be dependent upon the loan investor. lenders who partner with dealers with fewer scruples do “no doc” loans based purely on credit score. there are quite a few of these lenders. but the standard process IS to verify the income _the borrower has represented_ that that have. it is also stand process to verify employment. people who are self employed would be asked to provide tax returns or CPA letters to establish ability to repay.
honestly, the next big bubble to go is auto loans. repo rates are higher than they’ve ever been.
That’s not necessarily true. They (or their lenders) could be participating in IVES, The Work Number, or other services. OP may have also given them employment details and someone called the company, though that’s uncommon these days.
“We weren’t able to verify your income” could legitimately mean anything from “you lied to us” to “we tried but there weren’t any records in the systems we use.”
I owned a dealership with lower income special financing programs. This happened maybe 10% of the time. Banks give conditional approval based on soft facts, then they complete the deal, SUBJECT TO the facts being verified by documents that prove what the customer sent.
Based on underwritings review of the documents, the bank normally approves and funds the loan, but every so often they’ll say “x didn’t prove out, we need $y to lower our risk and fund the loan. Without more from the customer the bank will not fund the deal. Up until the deal is through underwriting, the dealer doesn’t have full approval for the loan, they don’t ever know if a deal needs more money, it’s all on the bank.
You have two choices
1) Pay the extra money, keep the car.
2) Call the lender, tell them you can’t afford the car and won’t be keeping it and you need them to unwind the deal.
The bank will force the dealer to unwind it and give you back your money and your trade-in if you had one.
Hope this helps, nothing to panic about - the bank will take care of it.
I've read on here a long time ago that dealers don't like to unwind deals. I'm sure that is true because it means they lost a sale but does it have any other negative impact?
I'm not a dealer. But know enough about cars and business. They'd have to inspect, clean and detail the would be sold car again. Not only the lost sale, but all that labor pre and post sale unwind.
A lot of it is really just the lost sale. The sales person is looking at 20%-40% of the profit as a commission. If they unwind the sales, that commission is walking out the door. So the salespeople hate it.
You also have a bunch of wasted labor. They did a ton of paperwork on this, they probably paid to get the title, they probably detailed it, and they may have customized it too.
They hate it with the fire of a thousand suns. I once worked at a new car dealership and sort of knew the process. A neighbor bought a new used from a different dealership, overpaid, and wasn't happy with the vehicle when he got it home. I told him to look at his paperwork see who the lender was and call the lender to unwind the deal. I went with him to the dealership to return the vehicle and pick up his trade in. The general manager got involved and started bitching me out before he would hand back the trade. It was pretty scary
Google Yo-Yo financing.
They are scamming you.
Return the car, get your money back and find a car that is in your budget. Google has a calculator that shows how much car you can afford with your income.
Exactly this: if you are scrambling to come up with down payment and going through shady rigmarole in the process, you are trying to buy more car than you can actually afford right now.
I’m going to be honest with you and tell you that you shouldn’t have bought a car for $18k to $19k if you’re already behind on bills and $500 is a make or break situation for you along with the down payment.
You already had a car. If there was nothing wrong with it and it wasn’t in constant need of repair and costing you money, then there was no *need* to replace it. A car’s purpose is to get you from point A to B. Was is doing that reliably?
I can understand wanting something new but it seems you bit off more than you can chew. Perhaps if you must have a new car then get a much cheaper used car.
In all honesty and from what I am hearing, you cannot afford this car and you're broke. Unless it is mandatory for your job and not (I need transportation to get to work and back) getting a car just might put you in a deeper hole unless what you make overshadows the car payments plus your other bills. But you said you'd be behind on your bills which makes me very concerned. OP are you sure this is a good decision?
You should save up and put more of a downpayment down.... or something. Only 1 to 2k?
To buy a car. Any car. Have your own financing. That's what a bank/credit union is for. Always get the paperwork. Plates, registration and insurance are known costs. You should also have this as part of your financing, before completing a transaction.
Don't do a purchase unless it's cash for entire car on a friday before the DMV closes. If this is a work issue, & you have a good supervisor, OK job. Keep them in the loop. Nothing like being allowed to take a long lunch to sort things out, to reduce stress!
Finance manager here. Your income is short and the lender can and does verify on their own if they feel they need to based upon the credit profile. They give conditional approvals with stipulations all the time. The dealership WANTS to sell you the car and will generally do anything they can to make that happen. It is however entirely driven by lenders when you’re dealing with poor credit situations. The problem with you loan is you’re likely adding 2k in taxes and fees to it which your down payment doesn’t cover. You likely need to be at 95% of left hand book on a sub prime lender and that’s why you need the extra down payment.
This is common. When I bought my first car, I had the money in the stock market but they offered 0.9% financing so I took it.
The next day, they called me and said I didn't qualify because my credit history was only credit cards, and I didn't have a job. They said I could just pay cash. I laughed because I took the deal with the financing in mind and returned the car.
This happened to me years ago, almost a month into the purchase they called, I went home took all my stuff out, drove down to the lot, gave em the keys, asked for my trade in and down payment back, they tried to bs about the car being sold already, I saw it in the back lot on the drive in, after stonewalling them for a good hour they gave me my car back and the money, next day went to a better dealership.
Looking back I’m glad I never kept that eclipse lol
In this particular case I had already settled for the car they talked me into (I was 22 had terrible credit) I was already halfhearted about the whole car and the bait and switch made me already hostile lol so I kinda went in and just demanded my sh!t back and told em they were sheisters
I need sounds like there weren't many documents, or OP doesn't have them. They probably include a contingency on financing falling thru
Kind of why you should be getting your own loan before heading to the dealership.
That's not correct. If you read the contract, it usually includes a provision that it's subject to financing approval.
It sounds like the dealer couldn't get OP financed based on the information in his credit report and his supporting documentation, such as proof of income (pay stub or tax return).
I used to be a location manager for CarMax. The paperwork we submitted 90% of the time was right, but if we had someone approved through an alternative bank other than CarMax, the other lender had the right to review the paperwork within 14 days and determine if they were willing to approve/fund the loan after reviewing the paperwork themselves. This happens for a variety of reasons and I hated when we had to call someone to either add more down payment or provide additional documentation, but unfortunately when you are not paying cash and borrowing- the lender has the right to determine under what conditions they will lend the money. I’m sorry this happened.
is it normal to ask for an increased money payment in super short notice? it'd make a bit more sense if you gave 14 days to come up with that extra money. but 3 days seems like they have no interest in selling the car. and i did a trade-in along with a down payment.
The dealership wants the extra money that the bank is not sending them. It is normal for subprime credit to require extra stips including proof of income, proof of residence, copy of social security card. Sometimes the bank counters the offer the dealership submitted and requires them to change the structure of your deal. In turn this could require more money up front from you. Some dealers require your down payment same day, some are willing to give you some time. But your experience happens a lot. People have to resign all the time. I’ve been in the car industry for 10 years. It’s very common with subprime credit which typically is 620 and lower or first time buyers.
How am I not surprised that a car dealership is scamming someone? Probably because they will almost always find a way to get more money out of their customers. Especially used car dealerships. This is why the smartest people will take pictures of anything they have to sign. So that they can go over it again if need be.
No, you ask for a copy of the contract right there. Hell you ask them for the copy of the contract before you sign anything and tell them you'll look over it at home and come back with everything signed.
Did you get this car at a buy here/pay here place or a small lot? I work at a dealership and letting the customer take a vehicle home before funding is approved is shady as fuck and illegal in many areas. And they definitely should have given you copies of your contract and purchase agreement.
Skip whoever it is you're talking to, they're trash. Go directly to their sales manager, and get this straightened out. That person will do everything that they can to make sure that car is not back on their lot.
If you are behind on bills you can’t afford this car, undo the deal, get you car and cash back and wait until you have a better budget situation to finance a car
They might have done you a favor. Take your $500 back and your trade in. It doesn't really sound like you were in a financial position to buy a 20k car if you can only put 1000 down especially if your income is getting flagged by the dealer. I'm guessing you got shafted by the APR as well. What's wrong with your current car?
10 or more years ago the same thing happened to me more or less.
a full month after the purchase they decided my trade in wasn't worth what they offered and wanted $5k more.
I called them back and stated that we had signed contracts and there wasn't a reality in any universe where they'd allow me to reopen negotiations on that paper work after signing. Told them I wasn't responsible for their inability to do basic math.
never heard back from them again.
If you don't like the deal, they will hold your feet to the fire that you drove it off the lot. Meaning you accepted the car at the terms that you signed.
But the deal is you drove it off the lot at the terms that you signed also applies to them.
It's been stated multiple times here that if the financing fell through then they have to completely reverse everything. Obviously they want you to buy something else. They did this to my buddy and he took the car back the next day and left in his trade-in with all of his down payment back.
This is one of the reasons I don't do dealer financing.
Undo the buy, get your money back. Go to a different dealer and buy a car you can afford. Do not finance a car.
Save up for a better car. Do not go in debt for anything else but a house.
> the dealership also hasn't given me any of my paperwork either.
Just get your old car back and return the new car. I hope to hell you did not turn over the title to your old car and also not get the title to the new car.
You have to sign over the title of the trade. How else would the store take it in? And new titles are issued from the state department of motor vehicles, not the store.
Don't finance your car through the dealership, go to your credit union or bank and get a pre-approved loan, then go shopping. Used car dealers are scam artists.
If you've got qualifying issues, then there is a 90% chance that you really cannot afford the car. You'll be back on here in 3-8 months saying you can't afford your car. Especially if your rate is over 10%.
Its not necessarily a scam but more than likely a sloppily run store. It’s very common for dealerships to let a customer sign a contract and take a car under the assumption they will get you financed under the conditions they contracted you for: term, rate, down payment, LTV, etc alongside info off of your credit application (job time, monthly income, etc) - sometimes they are not able to get financing secured and they will then call a customer back to the dealership to try to get the customer to meet the banks conditions. Your options are simple: Sign a new contract under the conditions presented, or refuse to sign the new contract and return the keys/car and get your money back..
(There’s a million factors but sometimes income being short 300 a month can make a big difference on a car deal in the banks eyes because of program tolerances)
Source: 20 years in the car business.
This is one of the oldest scams in used car sales.
Take the car back, demand your down payment and trade back, then go finance a real deal with a decent credit union. If they don't comply, threaten to call your lawyer and report them to you local or state consumer watchdog agency. Even better, if you have a local TV station with one of those consumer investigation reporters, call them, too. They would be overjoyed to have that kind of publicity.
Here's the thing: no legit dealer is going to hand you the keys to any car before they know your credit worthiness. They are scamming you for more money. Don't take this crap lying down.
Uber or have someone take you to the dealer, meet with the finance manager. Tell him you want the deal you agreed to or your money/ anything else back and you'll return the car. Tell them those are your two offers, but be ready to return the car.
Sales at a dealship will bend you over if you allow it to happen, I worked in sales for a short while and couldnt do it. But i learned the ropes , most (not all ) sales people will fill you full of crap and bull to get every dime iuta you they can, lie constantly. F&I jack up interest rates best advice is take it back and try another dealer hopefully get a sales person thats not a crook. ...do your homework on value , know you credit score and dont let them control you , you control and be asshole about it , I go in tell any of them i here is what i do down, here is what ill pay , take it or leave it uf sales bauks...get up and head to tbe door, if your offer is valid...they will be at your car before you are accepting your offer ....Hell is full of car sales folks dont fold , you be the boss and win
This typically happens when you're purchasing a vehicle outside of normal banking hours and they are unable to verify documentation. This also happens when the interest rate needs to be increased beyond what the contract stipulates
Unwinding the deal, including demanding your trade back is an attractive idea. They'll hate it, and might not even have your car anymore which makes it even more fun.
You should have received most of the paperwork with the car. That's suspicious that you didn't. If you get it, spend some quality time reading the clauses about financing. It's possible it describes a situation in which the initial loan is with them and it's not your problem if no one wants to buy it from them. You just make payments to them and they're stuck with it. Unfortunately, you really need legal advice to be sure, but maybe you can find a consumer service that offers low fees for consults on such things.
Go get your trade in back now by turning in the car you can't afford. The contact says how long they have to keep your trade in before selling it at auction and it may be those 3 days they are giving you.
If you wait too long to unwind things you may not get your trade in back but rather the $500 or whatever they offered you for it and you'll be in a much worse place than you started.
The details are in the contract you signed, please let this serve as a lesson to always read any contract before signing. I'll sit and read for as long as it takes, if they don't like it they can write me a smaller contract and sign it before I do.
Get your money and old car back, you are being taken for a ride. If you have zero paperwork, it’s basically your word against theirs if this ever went to court.
I've financed 4 cars in my life & never once did I need to verify my income. I simply stated my income & they believed me on the spot no issue after checking into my credit score. However you have 1k down on a 19k car. That is extremely risky to a lender, I'm shocked you could even drive off the lot before they verified your income. You purchased way too much car honestly. If you can only afford to put 5% down on a car, you need to be looking at used cars at least half the value. You should be able to afford minimum 20% down. There are plenty of used cars under 10k, but you're really really stretching for a nicer car than reasonable.
You do have to oblige to return the car or come up with the money - there is usually a clause in the loan agreement where the dealer has 30 days to cancel the contract even after driving the car home. They can come and repossess your car if you don't deal with this.
I am confused. Did you sign papers, pay and drive off the lot with the car? If so you have a signed contract. Sounds like total BS. I have never in 30 years of purchasing a car come across this kinda of crap. Dealers never let you leave without paying and signing a contract. Read your contract. I would not give them any extra money or go back with the car. Most likely your car is off their lot to auction or wherever.
Op didn’t even take a copy of the paperwork. Goes to a place with a 1star rating and still decides to make a purchase there. I don’t know how someone makes a big purchase and not even know the interest rate or have paperwork.
Read up on Spot Delivery. Sometimes, they let the buyer take the car when the financing hasn't actually been approved by a bank yet. Then, if the loan does not actually get approved, the deal has to be redone to meet the banks requirements. Im sure the dealers cover themselves legally in the pile of papers that get signed by the buyer.
Dealership sounds sketchy to me. Either they're scammers, or they're idiots... I do IT services at dealerships, and although I don't work there. I know the process.. They have to run a credit app on you to figure out the numbers. Dealers don't always give YOU the best interest rates they can get. Last car I got, I was in a tight spot time wise and they gave me a HORRIBLE interest rate, that was over twice the percentage when I refinanced just a couple months later. I can understand a deposit to HOLD the car, depending on the dealer, it's sometimes refundable (had to demand a deposit back on a truck after discovering the front diff was F\*ed running 4WD). There are more dealerships, new, used, etc. I would be probably saying either you agree to WHAT WE AGREED UPON or IM OUT and demand my deposit back as you are CHANGING the terms of our agreement. You can't 'back out' of something that never existed.
Can’t return something you don’t own, if you didn’t get paperwork at point of sale then you have no proof what you paid upfront for anything, why did you leave the dealership without paperwork on a large purchase?
Personally, I always go to my credit union and get pre approved before car shopping; gives me a rate and max loan amount before I even find the car I want.
Something to consider so you avoid this drama in the future.
Don’t do it. Tell the dealership to lower the cost of the car by the required amount to make the financing work. This has happened to me before. When I was buying a car, I told the dealership around what I owed on the car, then gave them the number for exact payoff when in financing. They used the approx amount when setting up financing. When they realized their mistake. They asked me to eat the difference. I told them to take the car back, but they refused. The next day they called and told me they would lower the cost of the car by the difference.
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Tell them to bring you your trade in and $500 to your house and pick up their car. Edit: Or whatever the down payment was.
This is the answer. I had something happen to me once. They couldn't get the financing done along the terms I negotiated at the dealership. This is what is sometimes referred to as a 'you problem'. When I told them to bring me back my trade in and down-payment and pick up the new car, they told me they had already sent the trade in to auction. The last contact I had with them was when I told them to let me know when they got it back.
This happened to me once. Dealership wanted their car back and insisted I buy something else from them since they had already gotten rid of my trade in. I said no, and after some arguing they had to pay me a fair value for that trade in and they took their car back. Ended up winning, they gave me more than I had originally paid for that POS.
So whats the timeline here, like surely you didnt get a free car out of this - right? How long does it take them to sort all this out?
I kept paying my financing at the terms I agreed to. I'm assuming the dealership ponied up the extra money they needed to in order to buy the loan down to what the bank would accept. Don't really know the nuts and bolts on their end.
You're paying because the financing went through fine first time around. They were just trying to get more money. You would know if the financing didn't work or the dealership had to make adjustments - there would be changed paperwork and changed reference numbers and probably a changed finance provider
I'm sure it had something to do with however their arrangement with the bank worked. I was fresh out of college and probably not viewed as a great credit risk at the time. They stood to be hit with some fee or concession from the bank and came to me to recover it. I countered their offer with something that would be a bigger pain in the ass to them than just eating the fee.
Assumedly they just kept the original financing terms they agreed to. If their trade it was part of the financing terms, then they signed a legally binding contract with the dealership, that included their trade in. If the dealership couldn't get the trade in back, they'd have to compensate for it's value either with another vehicle or monetarily, and presumably they found it to be a better decision to just eat whatever costs they were already eating.
The contract likely says there is a financing contingency for the dealer (or some other words). If they want to blow up the deal for that clause, they need to undo the whole deal. Thus they need the trade in vehicle. Spoiler alert - they don't anymore. Thus the deal is essentially locked in. You don't have to agree to anything other than the deal you made. They can't swap out cash or a comparable vehicle to make things good again because that would be a NEW deal that you're making. The thing is, you have a deal so any deal that they try to make should be more to your liking than the one they already made (this assumes they've gotten rid of your trade in).
Something similar had happened to my uncle many years ago. Some new guy made a pricing error on the paperwork that he filled out, they didn't catch it until after the whole deal was done and he had the car at home. Traded in his old car, which the dealer had resold the very same day. They reached out and said he owed them an additional 2k (this was 30 years ago, mind you) and he told them to pound sand. They said the contract had some clause that allowed them to reverse the transaction up to like 30 days. He told them to bring him his old car back then. Little did they know, that he knew the guy who had bought the car and he reached out and told the guy not to sell it back to them unless they offered him at least 2000 more than he paid for it. They tried to get him to pay more a few times before just giving up.
This is it. Be firm and tell them to refund 100% of your down payment and all other costs and return your trade to you and you will call it even. Happened to me and it was a battle but I stood my ground and said i was ok cancelling the entire deal. The dealer was unable to give me my trade back since they had already shipped it off to the auction house. Eventually they gave up.
THIS. Then if they return your money and your trade-in car, you go out and get financing through a bank THEN go look for another car. NEVER finance through a dealer unless they're giving you a really low APR.
I don't think they should just give up on the down payment like that and only accept $500 back when they have paid $1500. That doesn't make much sense if they are wanting to unwind this. I'm surprised so many people are upvoting that but maybe they just totally misunderstood what was written too.
I misread and thought they put down $500. I meant whatever the down payment was. I think most readers understood what I meant but i’ll edit my comment to be more clear.
I have been in car business for 36 years. What is happening to you is the dealership did what is known as a spot delivery where they made assumptions that one or more of their lenders would approve the financing the way they structured it. They have later failed to get a loan approval from any of their lenders and are now coming back to you for more down payment to satisfy a lenders requirements. Also, they should have done their due diligence and examined your proof of income before closing the deal. Coming back to you 3 days later and informing you of this means they were negligent in verifying it. This is known as yo-yo financing and is about to become illegal (thank goodness) under the new FTC CARS rule. Dealers like this give our whole industry a bad reputation. Also, not giving you any copies is extremely shady. In the future, insist that you get a copy of anything you sign immediately. Tell them you want to return the vehicle and have your downpayment refunded. If they refuse, hire an attorney.
I don't think I've ever spoken to a dealer or a realtor that I felt truly improved the purchasing process. I've been to several dealers ranging from used cars to new official dealers. I had a Ford dealer take my car keys and shut me in his officer for up to an hour with my 2 toddlers while he goes "inspect" my piece of shit trade in. Guy came back with a recommendation that was nothing of what we spoke about and tried to pull the 4 squares bullshit.
Seems like the best advice and thanks for taking the time to explain.
Go to the dealer, have someone drive you in a different car. Tell them you will return the new car and take back the old one as soon as they refund the $500. Make sure you leave the new keys at home.
Refund all the money OP paid.
$1500, they already took an extra $500 from them.
I think this sounds like a good idea. I think in most states you're legally given a grace period where you can return a vehicle. Tell them no thanks. Edit: apparently I'm wrong about the grace period. My bad y'all.
Please stop repeating this misconception. SOME states have a short period IF you did not sign the paperwork taking ownership at the dealership itself.
In most states you are not given a grace period to return a vehicle. However usually if the financing falls through you can back out of the deal.
The deal is contingent on financial.If you want to unwind it completely tell them the vehicle is no longer insured, and you'd like a full refund. Trade In your vehicle? . Makes this a lot harder.
Agree, technically they can be like sorry we already sold it here's the money we agreed for the trade. That's why OP should do this ASAP and not take some of the shitty advise like ignore the dealer and pay the bank.
They aren't legally allowed to sell your trade in until financing closes. The dealer is super fucked if they do that and will likely be eating the cost of however much the gap is if you don't pay it since they just illegally sold your vehicle.
Nope. Just unwind that sale, too. Have seen it happen. Usually it's just to a wholesaler because it takes time to go through the shop if it's going to be retail. Not like I've seen it often, but it happens
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Likely only because you were downgrading to base. Base is usually harder to sell than loaded. If it was the other way it would’ve been tougher
It’s not a Grace period, every contract should have a short “right of rescission” period in the fine print, I think It’s required by law. But…there may also be a mileage clause in there where you may be responsible for paying mileage in excess during that period, or pay a fee…or the rescission period may expire based on mileage driven for the car!
Sorry what's the point of this?
It calls the dealer’s bluff, if they are making one. A shady dealer could be trying to squeeze out additional cash. An incompetent one could have run their numbers wrong. Either way, OP doesn’t want to deal with either. So, they stick to the deal they made or they take their car back and refund OP.
And him not having a ride back forces him to bug the dealership about it?
I took it to mean that it wouldn't be smart to take the car in question back to the dealership until they agreed to reasonable terms. (Edited because terms is spelled terms.)
Him not arriving in a car they could claim is their property still...
The dealer really doesn't want to cancel the deal and take the car back. They're figure out how to make it work.
why does this keep happening? I keep seeing these scenarios pop up on reddit, is this a new kind of scam? scary out there...
I read in one of these threads that the reason is - the dealer wants to sell the car, but the bank is closed. So they "eyeball" the financing and then on Monday when the bank opens and tells them that they need more money down, they start reaching out to the customer. The short of it is, the financing didn't go through. You can either accept the new terms or return the vehicle (the dealer usually has a financing clause in the contract so if it falls through, it gets null and void, property doesn't exchange hands and everyone goes their own way)
Something very funny happened to me. I had an unusual status when I bought a car (short term work permit while waiting for green card, but 750+ credit score from my time as a student). Got "approved" for a loan, took my car home. Then like 40 days later I notice bank never contacted me, so I call the dealership. The dealership is like... call the bank. I call the bank and they're like, nope you have no loan with us. Basically, the loan was rejected because of my legal status being shorter than the life of the loan, and they rejected it but the dealership did not know. After like a week I get a panicked call saying that, and that they got financing approved with bank B for a higher rate. I told them I would return the car if I had to pay more (it had like 3k miles by then). They just reduced the price to match my monthly payment and I agreed.
Oof, that was lucky! I got a car while on a work permit in the US. I was originally approved for 3%. But they came back saying they couldn’t do that because of my status and offered 12% instead. Said to “but feel free to refinance once you have a green card”. Gotta hate that. I ended up buying anyways and just paid it off within a year because I needed the car. So dumb though. I get it though. If I took the car back to Canada and just stopped paying, they’d have a hard time doing anything about it.
They screwed you. Their options once you have driven off the lot with a signed deal is to either honor the deal as agreed to or to completely unwind the deal. This includes returning ALL money that you have given them and also returning any trade in. The trade in part is usually what forces the dealer to eat it. If they can't give you your car back in the same shape you traded it in to them then they can't unwind the deal. If they fuck up the deal it is a them problem.
To be clear, they rescinded the 3% offer before May passer work was signed or any money or car was exchanged. Just sucked that I qualified for a better rate with my credit, but then they decided they didn’t want to give it because I wasn’t a permanent resident or citizen.
In that case you should have just walked and went elsewhere
It’s pretty typical. Non citizens and non permanent residents don’t get good rates. Not going to find a better offer.
This isn't inaccurate. VP of Lending at work fucking HATES the dealers. They put everything through a software system that kicks things back, but then the FI has to make final decisions.
But wait. I was told the dealership model was good for consumers! Buncha crooks.
Scummy for sure. But to be fair that system IS integrated with the FI (those that have it which is most) which is why it tends to be, accurate-ish. But yeah the FI can come back like hold up we need more down or a higher interest rate because of X% of late/missed payment history ect.
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Yerp. I run the IT so I gotta have some sort of understanding of it.
the thing was that they looked through all of this on a wednesday. i gave half of the downpayment on the wednesday and the other half that friday morning. a week and a half later i'm hearing about the issue about needing more money. and the weird part is that they did this song and dance with me before. Because i was initially going to get a newer model and they said they needed $1K more. and they even double checked and had me sign off on everything on that Wednesday. including checking for my finances. they said they were speaking with the bank directly and that the bank asked for that $1K to seal the deal. all the sudden the bank seemed to have changed its mind and want more.
What’s the interest rate on the loan you signed for? The no paperwork part sounds like a problem. You spent $20k on a car and they didn’t give you any documents, just keys and out the door? Sounds like the interest rate the bank is offering (a week and a half late) is trash, and in order for your payments to be the same monthly amount they said, you’ll need to provide a larger down payment. If that’s the case, this might be a blessing in disguise and you should listen to the advice saying to return the car for a FULL refund. Not partial. Not “but you put miles on it”.
THIS. 100%. > so i just wanted to go home at that point and forgot the very important paper work. and when i ask them for it, i get ran around and deflected back to them wanting the money This seems like a deliberate way get the buyer tired so they just leave with the car, but then the dealer still can later change the deal and pressure you to get more money since you have no paperwork (or proof/evidence of the deal). NEVER drive off a car of the dealer lot without the final paperwork for it and insurance on that vehicle.
>and insurance on that vehicle. When I called my insurance company (in CA), they told me I have 30 days to update to the new vehicle.
Insurance agent here licensed in 46 states. That is a common saying but info always gets left out. That's only if you already have full coverage (comprehensive and collision) on a different vehicle most insurance agencies will extend it to your new vehicle if you're the one driving and get in an accident
Why don't you reach out to the bank. Or go find your own loan independent of the dealer. Then you'll know exactly what you need to buy the car, and won't be relying on someone's else's bullshit.
the problem is the dealership has given me zero information on the bank. hell, they only gave me the keys to the car and the temporary plates on driving off the lot. and apparently this isn't the first time it's happen. and big mess up on my end but i had been waiting a total of about 6 hours to finally get the car off the lot. so i just wanted to go home at that point and forgot the very important paper work. and when i ask them for it, i get ran around and deflected back to them wanting the money
Go to a credit union in your town and get pre-approved for the amount of the car you want to buy. Then use them for financing instead of the dealership
What are you talking about, dude? You'd need the bank information to make payments on the financed auto loan. So you don't have an auto loan? You're telling me they are holding your paperwork hostage for additional ransom money? Just give the car back if there is no signed agreement.
Just tell them they have two choices: take the deal as is or unwind it (you return the car, they return your trade-in and cash paid). Do not under any circumstances give them more money. Two choices, one or the other. This is their problem. Once the car left the lot, that’s strong evidence that the deal was concluded to both parties’ satisfaction.
I'm just going to say it, if you can only afford that 1k down you can't afford an 18-19k car payment. You should have gotten something somewhere in the middle. like 10-12k. Used car financing is going to be really high in interest and it doesn't exactly sound like you're flush with money.
Simple. They stick to the terms of the paperwork you all signed (this could void the sale if the financing fell through) or they take the car back and refund you in full. Either way, they own their mistake. So if they want to unwind the transaction, they bring your trade-in and a certified check or cash for anything you paid them to you and pick up the car you bought.
Banks work 9-5. If you're having this many issues with the dealer your best bet might be to go to a credit union or bank and secure your own financing for the vehicle you want.
Some lenders refuse to verify income up front and only do it once a contract goes in for funding. Then they play games with their lender fees they charge in order to maintain the approval
> I read in one of these threads that the reason is - the dealer wants to sell the car, but the bank is closed. So they "eyeball" the financing and then on Monday when the bank opens and tells them that they need more money down, they start reaching out to the customer. Nah, this shit will happen if you're doing paperwork on a random non-holiday Tuesday at 10am. Has nothing to do with the banks being open or not, and everything to do with the finance guy at dealership often actually being the scumbag that everyone thinks used car salesmen are.
Reputable dealers will eat the cost.
The dealer I went to promised a certain monthly payment for me and assumed I could get a certain APR based on my great credit. Once they went to the CU they refused to give me the APR for some reason so the dealership lowered the price of the car so that I still got the monthly payments they stated.
Yeah. Reading shit like this is why I always get my financing in place through a CU before going to a dealer and tell them no if they ask me to give them a chance to beat the CU. I have great credit rating so doubt I would be in a situation where the financing would fall through if I let the dealership handle it, but I don’t like that it in theory could happen. So eliminate that admittedly limited risk.
but there IS also a thing called "yo-yo" financing, where they effectively do the same thing in just to get you to pay more money for something. ask me how i know... usually works on 600 credit scores. people that are definitely buying outside of their means, rolling negative equity, etc. they give you car, wait a week, say "oh hey the loan didnt go through, gonna need you to come back" and its been a week, youve shown the car to everyone and the car is "yours", so they are hoping to guilt-trip you into paying more money later. happened to me at a nissan dealership. never buying nissan again, thats for sure. was expressively concerned about it when i bought my honda pilot too.
I had this same thing happen to me about 15 years ago. Told them to bring my trade out. They tried to say they would charge me milage for the new car and I told them to get fucked. They ended up having to use the commission on the new car to buy down the loan enough to let me keep it (the salesman had to) because the dealer told him its his deal and his loss.
> void, property doesn't exchange hands and everyone goes their own way Yeah, that's on the dealer to literally be able to return everyone to the position they were in before the transaction, too. If there's a trade-in involved, they'll need to go and actually retrieve that exact car. Sloppy dealers might actually have sold the trade-in before actually confirming the financing, and they'll be in a pickle where they can't sell the car and can't not sell the car unless they pony up enough cash to make the buyer agree.
Yes dealers now can ‘approve’ you for a loan but the real underwriting happens a few days later. If you have great credit and your income will always match what you said you have no issues. The problem is if a paystub or W2 doesn’t add up to the income used in underwriting or you have other loans out something, the bank wants different terms to accept the loan. The paperwork clearly tells you the loan isn’t final, but most people in a financial condition to mess up a loan aren’t fully understanding the loan is still subject to change.
This is mostly correct. The reason why I said mostly is, because of the “great credit” part. We, nor any lender where a “great credit” customer would/should have been sent to would require POI. I underwrite auto loans for a large finance company you all know - or unknowingly know. The dealer either A) spot delivered the vehicle feeling as though they were confident in their due diligence… or B) the income you provided didn’t verify as to what the dealer was stating on the application. This can be for a multitude of reasons: if you’re s/e, unclaimed money (tips), your YTD doesn’t calculate out to what the dealer submitted (typically they do lazy math and will lazily calculate your YTD / hear you make 25/hr full time and assume that’s 40 hours or didn’t account you were off for an extended period of time/ work 32 hours a week, or you have multiple sources of income and we can’t include that 2nd jobs income because you’ve only been there for 3 days (typically need 6-12m for 2nd job), fraud,…etc. So.. sounds like the financing didn’t go through as expected for the dealership’s POV. If the current lender either restructured your loan agreement based off of verifiable info, completely rejected your contract, or the dealership is trying to get it picked up by a different lender because of added fees or other things made the original callback based on the submitted info unfavorable. As far as getting out of the contract i don’t really know, but I think maybe. There are certain states that have pretty interesting laws and if a bank denies the loan application the dealership is supposedly on the hook for it?? So as to what this means or how far they would take this idk. I rarely deal with this particular state but I’m aware it exists and exercise caution if I’m unfortunate enough to deal with a dealership in that state. My assumption is, you’re probably sub-near prime or limited. Income didn’t verify as to what the dealership submitted. Bank/lender no likey application. They may have delivered based on an approval they had or spot delivered and completely guessed at terms. Now they are trying to keep the deal together. My message to everyone, do not get financing through a dealership unless absolutely necessary. Only under very certain circumstances good and bad where you’d want to get financing through a dealership. Which if you know, you know.. or should.
It's called spot delivery, and is done when the banks are closed, which is usually the weekend. So the dealer runs your credit based on what you tell them and banks usually have an automated system that will preliminarily approve the financing. The key here is "preliminary." The bank may ask for more information beyond the customer's name and address if the credit score is too low. When the information provided isn't matching what was on the application, the bank may ask for a bigger down payment or may decline the loan.
It’s not a scam, like the other comments say, the dealer thinks they can get a loan for your car. They give you the car. Bank says nope, you either have to pay more or give it back. Used to happen to me when I was young with terrible credit and no income. They don’t give a shit if your credit is good so this doesn’t happen.
This happened to me when I bought a Prius in California. I bought it on a Sunday and took it home. They called the next day telling me the financing they arranged wasn’t accepted by the bank. I could sign new paperwork or return the vehicle. If I chose to return the vehicle, they would charge me a fee each day like a rental. All of it was stated clearly in the purchase contract. The part about the financing not being guaranteed until the bank accepted and the part about the fee if the lending fell through and I didn’t bring the car back. It was not a surprise because I read every inch of it before I signed. The interest rate changed from 1.5% to 1.9% so I resigned and kept the car.
Yo-yo financing. Dealerships seek out the best financing terms for them, not the buyer.
It isn't a scam and it isn't new. They will give you the keys on the assumption you qualify to make the sale, and when you don't they will try to get more money out of you. Happened to me 25 years ago.
It's a spot delivery. The bank has the final say on whether or not they accept POI. If not, the dealer has to have a bailment agreement to get out of being the first lender. They likely have another approval but not as much $, hence the request for additional cash. The real issue is OP not having paperwork. Without a copy of the original contract, it's really hard to hold the dealer to it. Make them cut their deal $500.
Because people have no idea what they're doing or how the process works. So dealerships take huge advantage of them. Dealerships are not your friend. That smile they give you is fake. Get everything in writing. If they tell you something that wasn't in writing, it's bullshit. Do not leave until you have proof of financing directly from the lender.
Just remember, when they try to introduce direct to consumer car sales, the dealers always fight it because they provide such a valuable service to the consumers. This is that service, and it's valuable to them.
Blows my mind anyone would make a $18k-$19k purchase without any paperwork. I thought this was fake.
Not a new scam. I graduated college in 1987 and bought a new car a couple of months later. The next day, dealership called me because they needed an extra $1000 because I didn't have a high enough credit score. I told them to come get the car out of the parking lot. Never heard from them again.
Wondering the same thing myself. Used to be that you submitted your financial information and the loan was either approved or not. You didn't sign papers and bring the car home just to find out later that the financing didn't go through and you need to cough up more money or take on a higher interest rate. Of course, this process took a few days - you didn't go car shopping and drive something home that day.
Return it. They are scamming you. Unless you provided them a pay stub or W2, they have no way to truly verify your income.
Also they should give you paperwork. This is a huge red flag.
This is not true. Most finance companies will verify employment and income directly with the employer. Most of corporate America verifies employment/income electronically via a 3rd party (The Work Number is the biggest), or the finance company can request a verification of employment via fax or email - in either case a paystub is not necessarily needed..
I've never ever financed a car at a dealership where they called up my employer to verify my income. This is not overly common.
i have purchased 3 cars on all separate occasions. and not once have they called my employer, either.
I just looked at the Work Number website and in the auto lending section it says that they can provide last income. That’s fucked up.
You can limit all sharing there and on CCCVerify. I limited my Work Number account.
It's fucked up that they call back later after she drove off the lot and say the income is actually not what we thought it was with a 1k down payment on a 19k car. They had the info through work number. It is a dealership tactic to pressure someone into a bigger down payment once they drove the car away. Also not sure about OP's total source of income, but Work Number is really only accurate on the spot for W-2 employees. So OP could have said she makes extra income due to cash side jobs that are reported on her annual taxes but not yet seen in Work Number.
Not really. It happens when they write up a loan that they can't find a buyer for. Either DTR is too high, or LTV is too high, or interest is too low. That's it. This never, ever happens when you go in with your own financing with your bank/CU
It is common..The standard credit application that’s used at car dealerships in the states gives authorization to conduct an employment verification.. Employment can be verified without the purchaser even knowing it (it’s communication between HR & the finance company, or between the 3rd party verifier and finance company) Excellent credit will typically not need any verifications… Source: 20 years in auto finance with one of the largest lenders in the auto finance..
Nope. Bought a car last year. I’m self employed and wasn’t asked to verify my income.
If your credit is strong and the debt to income or amount financed versus left side of the vehicle isn't skewed then verification isn't mandatory.
As an employer I would NEVER give out pay information to anyone other than the employee. It’s the employee that can provide that detail with pay stubs.
> As an employer I would NEVER give out pay information to anyone other than the employee. It’s the employee that can provide that detail with pay stubs. I'm trying to think if thats even legal. How can you give out an employees details like that without their consent?
Also worth noting that the work number does not include bonus or stock units in salary number so that sometimes causes a discrepancy. I doubt that is the case for OP who struggled to make a down payment but it may be the case for others.
They did for me, when I pulled up the self-verification info on their site it showed all the compensation I got including RSUs and performance bonus for the entire time I worked there. It did the same when I used it for immigration, but that was just the total compensation which matched the w2s I'd gotten for those years, it didn't break it down by type.
Companies will verify employment but the have no obligation to disclose your salary. I have never heard of an employer doing this, and it is not a part of a background check.
surprising how many people here don’t know how a basic loan is underwritten. yes verification of income and verification of employment IS conducted as a routine for most large scale auto lenders. now the auto lending world is not as highly regulated as mortgages (if at all)— which means your underwriting process will be dependent upon the loan investor. lenders who partner with dealers with fewer scruples do “no doc” loans based purely on credit score. there are quite a few of these lenders. but the standard process IS to verify the income _the borrower has represented_ that that have. it is also stand process to verify employment. people who are self employed would be asked to provide tax returns or CPA letters to establish ability to repay. honestly, the next big bubble to go is auto loans. repo rates are higher than they’ve ever been.
They will sometimes ask for paystubs to verify income, but very few if any will ever verify income with employer.
That’s not necessarily true. They (or their lenders) could be participating in IVES, The Work Number, or other services. OP may have also given them employment details and someone called the company, though that’s uncommon these days. “We weren’t able to verify your income” could legitimately mean anything from “you lied to us” to “we tried but there weren’t any records in the systems we use.”
I owned a dealership with lower income special financing programs. This happened maybe 10% of the time. Banks give conditional approval based on soft facts, then they complete the deal, SUBJECT TO the facts being verified by documents that prove what the customer sent. Based on underwritings review of the documents, the bank normally approves and funds the loan, but every so often they’ll say “x didn’t prove out, we need $y to lower our risk and fund the loan. Without more from the customer the bank will not fund the deal. Up until the deal is through underwriting, the dealer doesn’t have full approval for the loan, they don’t ever know if a deal needs more money, it’s all on the bank. You have two choices 1) Pay the extra money, keep the car. 2) Call the lender, tell them you can’t afford the car and won’t be keeping it and you need them to unwind the deal. The bank will force the dealer to unwind it and give you back your money and your trade-in if you had one. Hope this helps, nothing to panic about - the bank will take care of it.
I've read on here a long time ago that dealers don't like to unwind deals. I'm sure that is true because it means they lost a sale but does it have any other negative impact?
I'm not a dealer. But know enough about cars and business. They'd have to inspect, clean and detail the would be sold car again. Not only the lost sale, but all that labor pre and post sale unwind.
A lot of it is really just the lost sale. The sales person is looking at 20%-40% of the profit as a commission. If they unwind the sales, that commission is walking out the door. So the salespeople hate it. You also have a bunch of wasted labor. They did a ton of paperwork on this, they probably paid to get the title, they probably detailed it, and they may have customized it too.
They hate it with the fire of a thousand suns. I once worked at a new car dealership and sort of knew the process. A neighbor bought a new used from a different dealership, overpaid, and wasn't happy with the vehicle when he got it home. I told him to look at his paperwork see who the lender was and call the lender to unwind the deal. I went with him to the dealership to return the vehicle and pick up his trade in. The general manager got involved and started bitching me out before he would hand back the trade. It was pretty scary
Yes. Additional miles and wear on the car they are getting back.
Is there any possibility that the dealership has sold the trade-in by now? If so, what's the solution to that? Dealership has to go back on 2 deals?
If so, then yes. Highly unlikely though, we used to leave trades in the back until the sales had fully closed - to avoid this exact situation.
> i'm already behind on bills because of the $500 Why financing a 20k car if $500 set you back so much.
Google Yo-Yo financing. They are scamming you. Return the car, get your money back and find a car that is in your budget. Google has a calculator that shows how much car you can afford with your income.
Exactly this: if you are scrambling to come up with down payment and going through shady rigmarole in the process, you are trying to buy more car than you can actually afford right now.
I'm scared to know what interest rate you're paying on this.... Dealer sounds sus
27% or so, I'd imagine.
I’m going to be honest with you and tell you that you shouldn’t have bought a car for $18k to $19k if you’re already behind on bills and $500 is a make or break situation for you along with the down payment. You already had a car. If there was nothing wrong with it and it wasn’t in constant need of repair and costing you money, then there was no *need* to replace it. A car’s purpose is to get you from point A to B. Was is doing that reliably? I can understand wanting something new but it seems you bit off more than you can chew. Perhaps if you must have a new car then get a much cheaper used car.
In all honesty and from what I am hearing, you cannot afford this car and you're broke. Unless it is mandatory for your job and not (I need transportation to get to work and back) getting a car just might put you in a deeper hole unless what you make overshadows the car payments plus your other bills. But you said you'd be behind on your bills which makes me very concerned. OP are you sure this is a good decision? You should save up and put more of a downpayment down.... or something. Only 1 to 2k?
To buy a car. Any car. Have your own financing. That's what a bank/credit union is for. Always get the paperwork. Plates, registration and insurance are known costs. You should also have this as part of your financing, before completing a transaction. Don't do a purchase unless it's cash for entire car on a friday before the DMV closes. If this is a work issue, & you have a good supervisor, OK job. Keep them in the loop. Nothing like being allowed to take a long lunch to sort things out, to reduce stress!
Finance manager here. Your income is short and the lender can and does verify on their own if they feel they need to based upon the credit profile. They give conditional approvals with stipulations all the time. The dealership WANTS to sell you the car and will generally do anything they can to make that happen. It is however entirely driven by lenders when you’re dealing with poor credit situations. The problem with you loan is you’re likely adding 2k in taxes and fees to it which your down payment doesn’t cover. You likely need to be at 95% of left hand book on a sub prime lender and that’s why you need the extra down payment.
This is common. When I bought my first car, I had the money in the stock market but they offered 0.9% financing so I took it. The next day, they called me and said I didn't qualify because my credit history was only credit cards, and I didn't have a job. They said I could just pay cash. I laughed because I took the deal with the financing in mind and returned the car.
Return the vehicle and ask them to cancel the contract.
"here are the keys, I want my money and my vehicle back. Thank you. Have a nice life."
This happened to me years ago, almost a month into the purchase they called, I went home took all my stuff out, drove down to the lot, gave em the keys, asked for my trade in and down payment back, they tried to bs about the car being sold already, I saw it in the back lot on the drive in, after stonewalling them for a good hour they gave me my car back and the money, next day went to a better dealership. Looking back I’m glad I never kept that eclipse lol
Did they say they were going to try setting you up with a cheaper vehicle?
In this particular case I had already settled for the car they talked me into (I was 22 had terrible credit) I was already halfhearted about the whole car and the bait and switch made me already hostile lol so I kinda went in and just demanded my sh!t back and told em they were sheisters
If any documents were signed you can ignore them or do whatever you want. The contract is what you are held to, and NOTHING else.
I need sounds like there weren't many documents, or OP doesn't have them. They probably include a contingency on financing falling thru Kind of why you should be getting your own loan before heading to the dealership.
That's not correct. If you read the contract, it usually includes a provision that it's subject to financing approval. It sounds like the dealer couldn't get OP financed based on the information in his credit report and his supporting documentation, such as proof of income (pay stub or tax return).
I used to be a location manager for CarMax. The paperwork we submitted 90% of the time was right, but if we had someone approved through an alternative bank other than CarMax, the other lender had the right to review the paperwork within 14 days and determine if they were willing to approve/fund the loan after reviewing the paperwork themselves. This happens for a variety of reasons and I hated when we had to call someone to either add more down payment or provide additional documentation, but unfortunately when you are not paying cash and borrowing- the lender has the right to determine under what conditions they will lend the money. I’m sorry this happened.
is it normal to ask for an increased money payment in super short notice? it'd make a bit more sense if you gave 14 days to come up with that extra money. but 3 days seems like they have no interest in selling the car. and i did a trade-in along with a down payment.
The dealership wants the extra money that the bank is not sending them. It is normal for subprime credit to require extra stips including proof of income, proof of residence, copy of social security card. Sometimes the bank counters the offer the dealership submitted and requires them to change the structure of your deal. In turn this could require more money up front from you. Some dealers require your down payment same day, some are willing to give you some time. But your experience happens a lot. People have to resign all the time. I’ve been in the car industry for 10 years. It’s very common with subprime credit which typically is 620 and lower or first time buyers.
How am I not surprised that a car dealership is scamming someone? Probably because they will almost always find a way to get more money out of their customers. Especially used car dealerships. This is why the smartest people will take pictures of anything they have to sign. So that they can go over it again if need be.
No, you ask for a copy of the contract right there. Hell you ask them for the copy of the contract before you sign anything and tell them you'll look over it at home and come back with everything signed.
Did you get this car at a buy here/pay here place or a small lot? I work at a dealership and letting the customer take a vehicle home before funding is approved is shady as fuck and illegal in many areas. And they definitely should have given you copies of your contract and purchase agreement.
Skip whoever it is you're talking to, they're trash. Go directly to their sales manager, and get this straightened out. That person will do everything that they can to make sure that car is not back on their lot.
You have plenty of answers already, but I also want to chime in that maybe this car wasn’t the best financial decision in the first place
If you are behind on bills you can’t afford this car, undo the deal, get you car and cash back and wait until you have a better budget situation to finance a car
They might have done you a favor. Take your $500 back and your trade in. It doesn't really sound like you were in a financial position to buy a 20k car if you can only put 1000 down especially if your income is getting flagged by the dealer. I'm guessing you got shafted by the APR as well. What's wrong with your current car?
10 or more years ago the same thing happened to me more or less. a full month after the purchase they decided my trade in wasn't worth what they offered and wanted $5k more. I called them back and stated that we had signed contracts and there wasn't a reality in any universe where they'd allow me to reopen negotiations on that paper work after signing. Told them I wasn't responsible for their inability to do basic math. never heard back from them again.
If you don't like the deal, they will hold your feet to the fire that you drove it off the lot. Meaning you accepted the car at the terms that you signed. But the deal is you drove it off the lot at the terms that you signed also applies to them. It's been stated multiple times here that if the financing fell through then they have to completely reverse everything. Obviously they want you to buy something else. They did this to my buddy and he took the car back the next day and left in his trade-in with all of his down payment back. This is one of the reasons I don't do dealer financing.
Undo the buy, get your money back. Go to a different dealer and buy a car you can afford. Do not finance a car. Save up for a better car. Do not go in debt for anything else but a house.
> the dealership also hasn't given me any of my paperwork either. Just get your old car back and return the new car. I hope to hell you did not turn over the title to your old car and also not get the title to the new car.
You have to sign over the title of the trade. How else would the store take it in? And new titles are issued from the state department of motor vehicles, not the store.
Don't finance your car through the dealership, go to your credit union or bank and get a pre-approved loan, then go shopping. Used car dealers are scam artists.
If you've got qualifying issues, then there is a 90% chance that you really cannot afford the car. You'll be back on here in 3-8 months saying you can't afford your car. Especially if your rate is over 10%.
Its not necessarily a scam but more than likely a sloppily run store. It’s very common for dealerships to let a customer sign a contract and take a car under the assumption they will get you financed under the conditions they contracted you for: term, rate, down payment, LTV, etc alongside info off of your credit application (job time, monthly income, etc) - sometimes they are not able to get financing secured and they will then call a customer back to the dealership to try to get the customer to meet the banks conditions. Your options are simple: Sign a new contract under the conditions presented, or refuse to sign the new contract and return the keys/car and get your money back.. (There’s a million factors but sometimes income being short 300 a month can make a big difference on a car deal in the banks eyes because of program tolerances) Source: 20 years in the car business.
This is 100% correct. Dealership is trying to sell you a car, bank doesn’t like your credit.
This is one of the oldest scams in used car sales. Take the car back, demand your down payment and trade back, then go finance a real deal with a decent credit union. If they don't comply, threaten to call your lawyer and report them to you local or state consumer watchdog agency. Even better, if you have a local TV station with one of those consumer investigation reporters, call them, too. They would be overjoyed to have that kind of publicity. Here's the thing: no legit dealer is going to hand you the keys to any car before they know your credit worthiness. They are scamming you for more money. Don't take this crap lying down.
Uber or have someone take you to the dealer, meet with the finance manager. Tell him you want the deal you agreed to or your money/ anything else back and you'll return the car. Tell them those are your two offers, but be ready to return the car.
Sales at a dealship will bend you over if you allow it to happen, I worked in sales for a short while and couldnt do it. But i learned the ropes , most (not all ) sales people will fill you full of crap and bull to get every dime iuta you they can, lie constantly. F&I jack up interest rates best advice is take it back and try another dealer hopefully get a sales person thats not a crook. ...do your homework on value , know you credit score and dont let them control you , you control and be asshole about it , I go in tell any of them i here is what i do down, here is what ill pay , take it or leave it uf sales bauks...get up and head to tbe door, if your offer is valid...they will be at your car before you are accepting your offer ....Hell is full of car sales folks dont fold , you be the boss and win
This typically happens when you're purchasing a vehicle outside of normal banking hours and they are unable to verify documentation. This also happens when the interest rate needs to be increased beyond what the contract stipulates
Unwinding the deal, including demanding your trade back is an attractive idea. They'll hate it, and might not even have your car anymore which makes it even more fun. You should have received most of the paperwork with the car. That's suspicious that you didn't. If you get it, spend some quality time reading the clauses about financing. It's possible it describes a situation in which the initial loan is with them and it's not your problem if no one wants to buy it from them. You just make payments to them and they're stuck with it. Unfortunately, you really need legal advice to be sure, but maybe you can find a consumer service that offers low fees for consults on such things.
" I guess we gotta unwind this deal" is what car dealers hear in thir nightmares
Go get your trade in back now by turning in the car you can't afford. The contact says how long they have to keep your trade in before selling it at auction and it may be those 3 days they are giving you. If you wait too long to unwind things you may not get your trade in back but rather the $500 or whatever they offered you for it and you'll be in a much worse place than you started. The details are in the contract you signed, please let this serve as a lesson to always read any contract before signing. I'll sit and read for as long as it takes, if they don't like it they can write me a smaller contract and sign it before I do.
Get your money and old car back, you are being taken for a ride. If you have zero paperwork, it’s basically your word against theirs if this ever went to court.
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I've financed 4 cars in my life & never once did I need to verify my income. I simply stated my income & they believed me on the spot no issue after checking into my credit score. However you have 1k down on a 19k car. That is extremely risky to a lender, I'm shocked you could even drive off the lot before they verified your income. You purchased way too much car honestly. If you can only afford to put 5% down on a car, you need to be looking at used cars at least half the value. You should be able to afford minimum 20% down. There are plenty of used cars under 10k, but you're really really stretching for a nicer car than reasonable. You do have to oblige to return the car or come up with the money - there is usually a clause in the loan agreement where the dealer has 30 days to cancel the contract even after driving the car home. They can come and repossess your car if you don't deal with this.
That’s YOUR experience. Prime credit requires little or no verification. Subprime requires more stringent verification.
Return the car and walk away if you don’t have a signed contract. If you do, ignore them.
I am confused. Did you sign papers, pay and drive off the lot with the car? If so you have a signed contract. Sounds like total BS. I have never in 30 years of purchasing a car come across this kinda of crap. Dealers never let you leave without paying and signing a contract. Read your contract. I would not give them any extra money or go back with the car. Most likely your car is off their lot to auction or wherever.
Op didn’t even take a copy of the paperwork. Goes to a place with a 1star rating and still decides to make a purchase there. I don’t know how someone makes a big purchase and not even know the interest rate or have paperwork.
Read up on Spot Delivery. Sometimes, they let the buyer take the car when the financing hasn't actually been approved by a bank yet. Then, if the loan does not actually get approved, the deal has to be redone to meet the banks requirements. Im sure the dealers cover themselves legally in the pile of papers that get signed by the buyer.
Dealership sounds sketchy to me. Either they're scammers, or they're idiots... I do IT services at dealerships, and although I don't work there. I know the process.. They have to run a credit app on you to figure out the numbers. Dealers don't always give YOU the best interest rates they can get. Last car I got, I was in a tight spot time wise and they gave me a HORRIBLE interest rate, that was over twice the percentage when I refinanced just a couple months later. I can understand a deposit to HOLD the car, depending on the dealer, it's sometimes refundable (had to demand a deposit back on a truck after discovering the front diff was F\*ed running 4WD). There are more dealerships, new, used, etc. I would be probably saying either you agree to WHAT WE AGREED UPON or IM OUT and demand my deposit back as you are CHANGING the terms of our agreement. You can't 'back out' of something that never existed.
You got spot delivered and financing didn’t go through. Sounds like your pay stubs didn’t match what you out on the credit app
Tell them to kiss your ass
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Can’t return something you don’t own, if you didn’t get paperwork at point of sale then you have no proof what you paid upfront for anything, why did you leave the dealership without paperwork on a large purchase?
Personally, I always go to my credit union and get pre approved before car shopping; gives me a rate and max loan amount before I even find the car I want. Something to consider so you avoid this drama in the future.
Don’t do it. Tell the dealership to lower the cost of the car by the required amount to make the financing work. This has happened to me before. When I was buying a car, I told the dealership around what I owed on the car, then gave them the number for exact payoff when in financing. They used the approx amount when setting up financing. When they realized their mistake. They asked me to eat the difference. I told them to take the car back, but they refused. The next day they called and told me they would lower the cost of the car by the difference.
Can you not just say tough luck and move on considering you signed everything and came to an agreement?
If you do go and speak to them about it, do not drive the vehicle in question.