Car Loan Weirdness

[TurboGizzmo]

Feb 17th

So wanting to free up some monthly cash I traded in my 08 Prius for a cheaper car. I didnt want to worry about marketing it and being home for test rides and blah blah blah. So I took it to the dealer i bought it from brand new.

Of course they would have bought it straight out for some super low ball amount but if i bought something else they would pay it off.

Well my payoff was less than retail or even trade in value but not by a ton and I still liked the idea of someone else handling all the paper work and getting me into something else at the same time.

I find they have a 01 Honda Accord and I know they are reliable, one owner, pretty good condition so we go back in forth over price and while the Honda was a bit more than normal it was from a dealer, they had put brand new tires on ohhh and again they are doing all the paperwork and getting me into something cheaper.

So of course my loan is "approved" I sign away my old car and away i go.

I get it emissions and get the car rekeyed because they only had the Valet key (claim the car was traded in with two keys but lost it) I am still ok with it because i have a lower payment and will be getting money back from cashing in my old Prius warranty.

March 2

I get a call from the dealer, the loan isnt going through.....there was some kinda mix up.....they could get it all taken care of if I had like $500-$900 down payment on the loan.

I am like WTF and call the bank and they tell me "We approved the loan, but then they came back and forgot their dealer fees, handling and tax and this pushed it beyond our limit for that year" The bank reads me all the notes back in forth where they forget to include this and that and go back in forth.

So i was ok with letting the car go for less than I could have got and paying a tad more for something because my payments are lower, insurance is lower, and payoff is much lower, but this is getting ridiculous.

I am wondering, should i just sit and wait and let them figure it out? I mean i signed all the paper work, i paid to have work done on the car already.....or i could say "Fine take the care back I want my Prius back" (Which they had offers on the 2nd day they had it)

Thoughts?

[modette99]

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[Sarge]

They warn us about this kind of thing in the Army. Colorado has this deal where a dealer can let you roll with a car off of the lot while they figure out the lending type stuff. What you need to be worried about is whether or not you signed a form that says "I agree to pay XX cents per mile and XX dollars per day in the event that financing is not approved" or some such thing. We had a Soldier a few years back buy a minivan with him and his wife, he signed that statement, took the car back east or something to move the family to Colorado and ten days later they told him he couldn't get approved for anything and he had to bring the car back. Cost him thousands.

If I were you, I'd try to figure out the loan piece. Try contacting your own lender, somebody you already bank with and (hopefully) have good credit with, and see what sort of limits they'd be willing to throw your way. Because of the trades and all the other crap involved, it's going to be VERY painful to try to reverse the entire process. It's going to hurt, and may not be what you originally wanted, but if I were you I'd just find a loan that fit and bite the bullet, at least until you can refinance to something better.

Sorry if that's not what you wanted to hear, but that's honestly what I would do in your position.

[modette99]

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[CaneZach]

My thoughts? Eff the dealer! As the saying goes, "A screw up on your part does not constitute an emergency on mine."

[vort3xr6]

What dealership did you buy it from?

I work for the Stevinson group so if it is a problem with one of our stores, I can help you.

[TurboGizzmo]

Sarge is right, i did sign a form about that, but I also have the bank telling me the reason i was instantly approve after hours is my great credit and income and that it still stands approved at the orignal amount. (The bank is really my credit union i've been with for over 10 years)

The reason i took it to this dealership is because how they treated me the first time.....I still like the dealer, sales girl was great, everyone was nice...I want to give them a chance to fix it but i also want to be proactive incase i have to get nasty.

The dealer is the biggest (only) Toyota dealer in Fort Collins, i will leave it at that for now.

[birchyboy]

I think the dealer needs to eat the cost. If the bank can give you copies of the emails, then you can prove the screw up is on their end and that money should come out of their profit.

You might want to consider calling Tom Martino for advise. He seems pretty good at stuff like this.

[Think]

What dealership did you buy it from?

I work for the Stevinson group so if it is a problem with one of our stores, I can help you.
Freeway Ford doesn't happen to fall under the Stevinson group does it?

[vort3xr6]

Freeway Ford doesn't happen to fall under the Stevinson group does it?

Unfortunately no. We closed our Golden Ford store a few years ago. But if you want to look at a Toyota, Lexus, Chevy, Jaguar, or Porsche, let me know. And no I am not a salesman.


EDIT** We have a large inventory of used units as well. About 600 in our organization. Check out www.stevinsonauto.com to see all the used inventory. And let me know what you think because I created the concept!

[vort3xr6]

To the OP, our group encounters this situation often. We always eat the cost and rarely have to roll back a deal. But you need to demand they rectify the situation.

[kevplus2]

if they backed out on the deal they would have to return your old car. if by some chance they have sold it you really have them on the ropes

even if they were nice you arent buying a car to make them a profit, you should worry about yourself first

[Kristian]

Something doesn't add up. There should be no tax when trading down.

[longrider]

This can all be boiled down to one point - the signed sales contract you have is a binding agreement. If the contract says $10000 they MUST sell it to you for $10000. Now if they told the bank $9000 which is what was approved and now they tell the bank $10000 which wont fly you are out of luck. However if $10000 was approved they have to take it, the mistake (if any) is their problem. Also remember if you can make up the difference between the approved amount and the amount on the sales contract the sale can still go through.

Now a couple other points. Kristian is right on the sales tax, tax is based on the purchase price minus the trade in price with a bottom limit of zero (if the trade is worth more than the purchase you dont get a tax refund). Also under state law they can not sell your trade until your deal is finalized, however I think this is frequently ignored.

[Kim-n-Dean]

Freeway Ford doesn't happen to fall under the Stevinson group does it?Biggest piece of shit dealer on the planet!!!!!!!!!! The guy who sold us the truck, their service manager and their mechanics are complete fucktards!!!!!! I don't know how they stay in business!!

I signed all the papers for my truck and Freeway pulled the same thing. They called me on my cell a few days later and told me they needed more money. I said I'll be down there in ten minutes to give you the truck back. I had to go home first and there was a message on my phone that they got it handled. Pieces of shit, all of them!!

[TurboGizzmo]

I am in no mood to toss them more cash, they got my trade for super cheap and have it priced $5k more and they sold me a car for more than book.

All this was fine because I got what i wanted, full payoff, cheaper payments, cheaper insurance, and they handled (kinda) all the paperwork.

This isnt a car i am in love with but its a good reliable car for driving Loveland to Fort Collins everyday and did better in the snow.

Waiting for them to figure it out before i threaten to give them the car back, they have a A+ BBB rating so I hope they will play nice.

[modette99]

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[Dietrich_R1]

Waiting for them to figure it out before i threaten to give them the car back, they have a A+ BBB rating so I hope they will play nice.

I think it's time screw w/ them just for the SPORT!!!!!! Don't wait for them to be nice. They're gonna push until you push back. Sounds like this is their normal operating procedure so I'm sure some suckers give them $$$$

File a complaint w/ the BBB!! Looked like others had a similar problem so they should do it also.

[Kim-n-Dean]

...I hate when dealers pull the "we are not making much" when you know damn well they low balled someone for that USED vehicle and then they priced it at book value. My father always tells them, "you can make money off of one of the vehicles but not both" It has worked for him in haggling sales guys been known to chase him down as he starts to walk to the door...When we bought our dirt bikes, the salesman finished the paperwork and held it up and said, "see the little commission I'm making on this!" I responded with, "see what these bikes just cost me!" He was whining about making only $30 commission, so I asked him if he'd rather we just cancel the deal. He didn't answer and finished the last piece of paper and we were on our way.

For toys, everything at our house is X2, so that helps when it comes to haggling. I love buying cars or bikes or RV's!!! They expect you to get that puppy hard-on and take whatever deal they offer. Always walk out! They shit a brick when we do that. They either won't let you leave or you'll get home to an answering machine full of, "hey, maybe we can go lower on that item!!" Works every time!

A few quick examples. Everything bought new...

1994 Bronco $25,000 - I got it for $13,800.

2000 Rinker 192 $35,000 plus a $10,000 engine option - I got it for $25,000 and made them throw in some towable toys ($150).

2007 Tahoe Fifth Wheel Toyhauler $55,000 before options and taxes - I got it for $36,000 out the door and made them pay for half the hitch ($800).

Give them a ridiculous number, wait for them to laugh, then walk!

[birchyboy]

A few quick examples. Everything bought new...

1994 Bronco $25,000 - I got it for $13,800.

2000 Rinker 192 $35,000 plus a $10,000 engine option - I got it for $25,000 and made them throw in some towable toys ($150).

2007 Tahoe Fifth Wheel Toyhauler $55,000 before options and taxes - I got it for $36,000 out the door and made them pay for half the hitch ($800).

Give them a ridiculous number, wait for them to laugh, then walk!

Note to self: never let the wife see their garage filled with toys....

[modette99]

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[chanke4252]

man, some dealers are scum. i doubt it was a mistake, they're probably just trying to gouge you for more money. even if it was a mistake, it's their mistake, and it's unethical to try to put that on you. If they want to pull that stuff so badly, then just bring the car back along with a bill for the work you had done, and tell them what the loan company said.

[Dietrich_R1]

1) Recruit some peeps

2) Everyone arrive ready to bargain for a set vehicle

3) Consume everyones time

4) Everyone get up @ stated time & walk out.

5) Tell them what it feels like to waste peoples time & expalin that the onslaught will continue. Every deal may be BS!!

6) Buy Beer, Za, & laugh

7) Repeat

[vort3xr6]

Working for a dealer group I get the opposite end of the spectrum. I know what we make on cars and I know exactly when we get screwed or not.

A lot of customers come in thinking we make so much money on a car sale. On USED, we make around 2500 per car on average.

On NEW, average profit is 180 bucks. Mainly because the MSRP is already so low to what we own it for.

The dealer the OP used, obviously did not live up to their commitment. I have personally seen a few deals that we had to roll back. Most of the time it is because the customer lies on their credit application.

In reality, I bet you were on the cusp of Tier 1 financing and Tier 2 financing. They sold the car thinking that they could push you through Tier 1. After submitting all docs and talking to the underwriter, they determined that you were Tier 2, thus the need for more money down to get the same payment. We had to get a family to return a brand new Sienna because that day, the underwriter just didn't want to take the risk. It seriously varies every day depending on the mood the underwriter is in.

Good luck but I would go in and demand to know the facts. Ask them what the underwriter said and ask the director of finance to talk directly to the lender.

[TurboGizzmo]

They claim they have it all resolved but they are going with the orignal leander that they tried first that "auto denied" the first time. Lucky i have all the paperwork i did for the first lender and the second lender so I am going take my time this morning when i go in to go over everything again.

So as of right now the lender that auto approved really denied and the one that auto denied really approved.....weird.

==============UPDATE===================

And its all better! They went back to the first lender and "called in a favor" to get the loan re approved, funny thing is they had to honor the rate and price that the 2nd lender had approved, so i got the lower rate and lower payment. I saw on the paper work they had to eat some $600 lender fee and made sure it wasnt worked into my paper work by comparing.

The lady did say that my car had sold so this was the easiest way to get it all taken care of without starting over.

While a PITA they honored everything I originally wanted and the only thing i had to do extra was time, so I am satisfied.