What Happens Now

Discussion in 'Homesteading Questions' started by JAM, Mar 22, 2005.

  1. JAM

    JAM Well-Known Member

    Messages:
    67
    Joined:
    Nov 22, 2004
    Location:
    New York
    My son bought a truck, traded his old one in which was on its last legs. Was told the payments were to be X amount per month. His old truck would probably be auctioned out . He has had the new one for a couple of weeks. Spent $1100 putting a plow on it. The dealer has registered it in my sons name. Today he gets a call from the dealer stating that the loan did not go thru even though they had told him what the payments were going to be and they cannot get their money from the bank. Now what happens? I never heard of letting a vehicle go off the lot wthout approval. He has a meeting with the dealer thurs. nite
     
  2. Jena

    Jena Well-Known Member

    Messages:
    2,489
    Joined:
    Aug 13, 2003
    This is a very common scam played by some dealers. I'm not sure what your remedies are, but contact any kind of state agency that licenses auto dealers or handles scams.

    Jena
     

  3. travlnusa

    travlnusa Well-Known Member

    Messages:
    1,245
    Joined:
    Dec 12, 2004
    Location:
    WI
    I worked in the car business for many years. What happened to your son someone messed up. The used car manager sold the trade without waiting for the deal to clear the finance office.

    I would let customers take cars without the loans being approved all the time. I would pull a copy of their credit report and review it. Based on what the report said, I would decide what bank would "buy the loan". I would then print the loan papers for that bank. After you left the dealership, I would fax in the credit app, and when approved, I would get paid by bank. There was always a form signed saying if loan was not approved, the deal would be unwound.

    They will have to "unwind" the deal. Meaning you give them theirs back, and they should give yours back. Since they sold yours that cant happen.

    Have your son take the plow off before going to the meeting

    I am guessing they will first offer you cash for the trade. If they do this, go to the meeting thrusday with what a fair amount would be. If you can not agree, then they will start to offer you different one.

    You said the trade was on its last legs, so keep in mind that is the kind of car they might offer back to you.
     
  4. unioncreek

    unioncreek Well-Known Member Supporter

    Messages:
    1,440
    Joined:
    Jun 18, 2002
    Location:
    SE Washington
    I've heard of this before and here's how it works. Your son didn't get the loan from the bank at their interest rate. Now that the bank turned him down the dealership will finance him at a much higher interest rate. It the dealer will not take the truck back your son will be stuck with it unless he can finance at a lower interest rate.


    Bobg
     
  5. travlnusa

    travlnusa Well-Known Member

    Messages:
    1,245
    Joined:
    Dec 12, 2004
    Location:
    WI
    That is not true.

    If the bank did not approve the loan at the interest rate stated on the contract, but did at a higher rate, a new contract would have to be signed by the customer. If the bank did not approve the loan, but you say the dealership will carry the note, again a new contact is needed as well at a new lein holder form for the title work.

    If the dont sign the new contract, there is no deal.

    Remember that the interest rate on the contract is not what the bank is charging. If a loan from a car dealer says 10%, they are paying the bank 8% (or something in that range.) I would keep my rate markup to 3 points or less.

    Banks, though car dealers, do not have high rates for high risk and low rates for low risks. Finance companies and car maker finance division will.
     
  6. mightybooboo

    mightybooboo Well-Known Member

    Messages:
    11,301
    Joined:
    Feb 10, 2004
    Location:
    So Cal Mtns
  7. jack_c-ville

    jack_c-ville Well-Known Member

    Messages:
    144
    Joined:
    Feb 19, 2004
    Location:
    Virginia
    Never, ever get a loan from a car dealer. They know that you are essentially a captive customer and will charge outrageous interest and fees because they know that you just want to hurry up and get in that car and drive away. Go to a real bank and arrange your financing there.

    Getting that call after a couple of weeks is ridiculous. Since he's already sunk money into putting the plow on, I suggest going to a bank and applying for a car loan immediately. Use that to buy the truck and make sure that he gets back any fees that he paid to the dealer who did not provide anything in return for them. The car dealer's financing schemes are not the only game in town.

    -Jack
     
  8. Wolf mom

    Wolf mom Well-Known Member

    Messages:
    8,039
    Joined:
    Mar 8, 2005
    Location:
    Appalachian Foothills
    I think I'm missing something... A contract, signed by both parties and dated is valid in a court of law. In my mind, it's the dealers fault for not doing what they should have in the beginning. If your son wants the truck: 1. Go to an attorney (sometimes initial meetings are free, or low cost). 2. Stick to your guns - make the dealer find other financing. OR do what was said earlier, get your own financing NOW 3. Hide the truck (they may come trying to "reposess" it. If you fight, you have more than a 50/50 chance of keeping it. Their game is to wear you down.

    Why do we always believe "they'll" win just because we're smaller. We let them win to continue this behavior with others. Stick to your beliefs - the truck is yours. You signed the contract in good faith!
     
  9. luvrulz

    luvrulz Well-Known Member Supporter

    Messages:
    3,232
    Joined:
    Feb 3, 2005
    Location:
    Kentucky
    Great response Wolf Mom! I agree with her and I would walk to that meeting....better yet, have someone drop you off!

    Had a dealer in Florida try this with me and they finally ended up getting a loan through another bank.... They try these tactics to get a higher interest payment and more $$$ out of ya! Don't give in and hold your ground!

    Good luck!
     
  10. caberjim

    caberjim Stableboy III

    Messages:
    426
    Joined:
    Feb 19, 2004
    Location:
    Maryland
    Something is very wrong. The dealer should have known the very next day if the initial financing was not going to go thru. He should have called your son and contacted other lenders to find someone who would approve the loan and let him know what the payments and conditions would be. Then they would get together to sign the new paperwork. All that by the end of the next business day following the initial purchase. If you buy a car on the weekend, the dealer has a pretty good idea if your loan will go thru or not and will have all the paperwork done and lets you take the vehicle home. The bank/lender approves the loan on Monday. Or rejects it. It's not a process that takes a couple weeks, not even a couple days. Something is fishy and I would start by finding out why there was the delay.
     
  11. Mrs_stuart

    Mrs_stuart Well-Known Member

    Messages:
    1,255
    Joined:
    Dec 23, 2003
    Location:
    MISSOURI
    I totally agree with Wolf Mom and luvrulz!!! Walk, leave the truck in a "safe" place and make them "fix" the problem to your satisfaction, dont give in.

    But, i would also take that plow off right away...just in case!

    Belinda
     
  12. Jena

    Jena Well-Known Member

    Messages:
    2,489
    Joined:
    Aug 13, 2003
    They did sign a contract, but they gotta read it! If it says "subject to loan approval" (and I bet it does) then they are had. Either get your own financing, take the truck back or pay whatever outrageous amounts they are demanding. Read that link I posted.

    Jena
     
  13. JAM

    JAM Well-Known Member

    Messages:
    67
    Joined:
    Nov 22, 2004
    Location:
    New York
    I rear the contract and it does not say subject to loan approval. As a matter of fact it even states the interest, monthly payments, total cost with the interest, etc.,etc. My son had gone to look at the truck three days before he picked it up and filled out the papers. They called the next day and said he was approved. He went two days later to get it and they had it all registered and liscensed in his name. I can't believe in all that time they didn't know that there was no approval, or did they not put the lien holders name on the papers when they sent them in and are afraid my son is going to get a clean title back in which case they could be screwed.
     
  14. travlnusa

    travlnusa Well-Known Member

    Messages:
    1,245
    Joined:
    Dec 12, 2004
    Location:
    WI
    The "subject to approval" would not be in the loan contract, it would have been a seperaate form.
     
  15. Quint

    Quint Well-Known Member

    Messages:
    3,510
    Joined:
    Nov 12, 2004
    As someone who has done a bit of repo work I would advise you to hide the truck off site, preferably in a locked garage until the matter is settled.
     
  16. buttercup

    buttercup Well-Known Member

    Messages:
    338
    Joined:
    Apr 25, 2004
    Location:
    Idaho

    A locked garage is key (ha ha ha, no pun intended :) ). They can not unlock or enter the garage. Either would constitute a breach of the peace.

    BC
     
  17. Quint

    Quint Well-Known Member

    Messages:
    3,510
    Joined:
    Nov 12, 2004
    Not to threadjack but for any guys out there with no family to support and a sense of adventure I would recommend a stint as a repo man. It didn't pay all that great but man was it fun. Oh the phone and research time was sorta dull but actual recovery was pretty darned entertaining. High speed chases, fights, getting shot at sometimes. Great fun. sorta like bail enforcement-lite.
     
  18. hairy_shemp

    hairy_shemp Member

    Messages:
    9
    Joined:
    Jan 28, 2005
    Location:
    cny munnsville
    this happened to me thou they still had my trade.2 weeks latter they call say loan fell throu.they get sued from a bunch of peeps throu the attorny gen.it was 3 years ago at sam dell call the attorny gen. office a.s.a.p.
     
  19. mightybooboo

    mightybooboo Well-Known Member

    Messages:
    11,301
    Joined:
    Feb 10, 2004
    Location:
    So Cal Mtns
    I agree on the get your own financing now.Then if you wish to pursue other avenues,fine.Right now though you should be out securing financing.IMHO

    BooBoo