Dealer Worried about Pre-Approved Loan Check (PenFed) - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

Embalmer · 04-20-2009, 10:51 AM

So I just talked to my dealer and he seems to think that paying for a car with a pre-approved check is "not normal".

He is worried that some of these "online credit unions" charge hidden fees or if the dealer doesn't do something "exactly right" that the check will bounce.

This is a pre-approved check from Pentagon Federal Credit union. I am in Michigan and the CU is in Nebraska... so he was also worried that there wasn't a Brick and Mortar place here in Michigan.

Can any other dealers say whether this is a major concern for dealers? I thought a pre-approved check was GOOD thing.

Can he refuse to accept this check???

ZZcamaro · 04-20-2009, 10:53 AM

You are good to go...You should have some supporting paperwork with your check. That is all the dealer needs to see.

____ ______ __ __ ______

Danno · 04-20-2009, 10:55 AM

I've bought maybe five cars using pre-approved loans, from four different dealerships, where my FCU just gives me a check that I make out for the price of the car, either through Navy Federal Credit Union. or USAA federal savings bank, neither of which have brick-and-mortar locations by me. I've never had a dealer have any problem with it whatsoever.

As far as refusing to accept, I'm sure he can, if he wants to.

87irocz · 04-20-2009, 10:55 AM

I've used Navy Federal Credit Union preapproved checks several times and never had a problem.

Verio · 04-20-2009, 10:57 AM

I've also used Navy Fed for every car purchase I've made. You basically apply for the max amount you want to pay, and then haggle it out with the dealer. You then put the haggled amount on the check and you're good to go.

The dealer probably wants you to finance through GMAC.

trudawg660 · 04-20-2009, 10:57 AM

The check has a approval amount, you can only write the check to that point. if its past that point it will bounce. And Pentagon is not a "Online Credit union" they are on almost every military base. he has no reason to deny it

87irocz · 04-20-2009, 11:03 AM

Quote:

Originally Posted by trudawg660

The check has a approval amount, you can only write the check to that point. if its past that point it will bounce. And Pentagon is not a "Online Credit union" they are on almost every military base. he has no reason to deny it

You're right about not being an online credit union. However, I was in the Navy, Army Reserves & Air Force Reserves at locations in GA, SC, & Virginia and never saw a Pentagon Federal Credit Union at any of the bases I went to.

*mlee* · 04-20-2009, 11:05 AM

Quote:

Originally Posted by Danno

I've bought maybe five cars using pre-approved loans, from four different dealerships, where my FCU just gives me a check that I make out for the price of the car, either through Navy Federal Credit Union. or USAA federal savings bank, neither of which have brick-and-mortar locations by me. I've never had a dealer have any problem with it whatsoever.

As far as refusing to accept, I'm sure he can, if he wants to.

Embalmer · 04-20-2009, 11:10 AM

Quote:

Originally Posted by ZZcamaro

You are good to go...You should have some supporting paperwork with your check. That is all the dealer needs to see.

____ ______ __ __ ______

I hope so.

I just faxed him all the paperwork that came with the check...

I appreciate the feedback...the comments make me feel a bit better about this....

Vash · 04-20-2009, 11:35 AM

I'll translate the salesman speak for you with my terminator mode on.

"The CU won't let us pork you with overbloated doc fees and overpriced paint and underbody sealants etc etc".

Terminator translation mode... OFF

toehead93 · 04-20-2009, 11:51 AM

One of my banks told me the check has to be written for the sale price of the car (or MSRP). Sales tax, registration, mark-ups, and any other charges cannot go onto the loan. So even if I'm approved for $40,000 and MSRP is $36,000 I can only write the car loan for $36,000. I have to use my down payment to pay the extras. The lenders don't want to be upside down the first day, normal depreciation is bad enough.

ZombieEatsYou · 04-20-2009, 11:52 AM

And I've used E-loan twice with no problem. They are NOT a B/M outfit either. A check's a check.

I think Vash is right, he may be trying to plant a seed in your head so you'll take his financing instead.

Embalmer · 04-20-2009, 12:04 PM

Quote:

Originally Posted by ZombieEatsYou

And I've used E-loan twice with no problem. They are NOT a B/M outfit either. A check's a check.

I think Vash is right, he may be trying to plant a seed in your head so you'll take his financing instead.

Hmm yea, I'm going to stand pretty firm on this... This IS a legit check from a legit credit union.....no reason they shouldn't accept it.

And I will NOT do dealer financing....

Silverghost · 04-20-2009, 12:17 PM

Your dealer just wants you to have to use Vaseline. Stand your ground.

04-20-2009, 10:51 AM	#1
Embalmer 2G1FT1EWXA9103351 Drives: 2SS RS, SIM, 6pd, 20"Alum Join Date: Oct 2008 Location: Canton, Michigan Posts: 607 View My Garage	Dealer Worried about Pre-Approved Loan Check (PenFed) So I just talked to my dealer and he seems to think that paying for a car with a pre-approved check is "not normal". He is worried that some of these "online credit unions" charge hidden fees or if the dealer doesn't do something "exactly right" that the check will bounce. This is a pre-approved check from Pentagon Federal Credit union. I am in Michigan and the CU is in Nebraska... so he was also worried that there wasn't a Brick and Mortar place here in Michigan. Can any other dealers say whether this is a major concern for dealers? I thought a pre-approved check was GOOD thing. Can he refuse to accept this check???

04-20-2009, 10:55 AM	#3
Danno Drives: 1993 Trans Am, 2007 Acadia Join Date: Apr 2009 Location: Idaho Posts: 50	I've bought maybe five cars using pre-approved loans, from four different dealerships, where my FCU just gives me a check that I make out for the price of the car, either through Navy Federal Credit Union. or USAA federal savings bank, neither of which have brick-and-mortar locations by me. I've never had a dealer have any problem with it whatsoever. As far as refusing to accept, I'm sure he can, if he wants to. __________________ US Navy retired submariner. previous cars, starting with my first. 1970 Nova 1967 RS/SS Camaro 1969 Chevelle 1970.5 Camaro A long, undistinguished line of sedans, SUV's, and minivans.

04-20-2009, 11:52 AM	#12
ZombieEatsYou Drives: "Bmblbee" 2010 RY 2SS/RS. VIN 12043 Join Date: Oct 2008 Location: Waldorf, Maryland Posts: 1,271 View My Garage	And I've used E-loan twice with no problem. They are NOT a B/M outfit either. A check's a check. I think Vash is right, he may be trying to plant a seed in your head so you'll take his financing instead. __________________

04-20-2009, 12:17 PM	#14
Silverghost Drives: Z28 Join Date: Jul 2008 Location: Florida Posts: 533	Your dealer just wants you to have to use Vaseline. Stand your ground. __________________ Speed Kills - Drive a Ford and live forever! www.rivercityperformance.com

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04-20-2009, 10:53 AM	#2
ZZcamaro Drives: 2SS w/ ZZ427 Package!! Join Date: Oct 2008 Location: Pittsburgh, PA Posts: 2,700	You are good to go...You should have some supporting paperwork with your check. That is all the dealer needs to see. ____ ______ __ __ ______

04-20-2009, 10:55 AM	#4
87irocz Intermediate Member Drives: 2010 Camaro SS/RS Join Date: Apr 2009 Location: Elberton, GA Posts: 78	I've used Navy Federal Credit Union preapproved checks several times and never had a problem.

04-20-2009, 10:57 AM	#5
Verio Taking it 1 day at a time Drives: 2010 Chevy Camaro 2SS/RS Auto Join Date: Apr 2009 Location: San Antonio, TX Posts: 751 View My Garage	I've also used Navy Fed for every car purchase I've made. You basically apply for the max amount you want to pay, and then haggle it out with the dealer. You then put the haggled amount on the check and you're good to go. The dealer probably wants you to finance through GMAC.

04-20-2009, 10:57 AM	#6
trudawg660 Drives: 2006 Dodge Charger / 2SS IOM Join Date: Dec 2008 Location: United Kingdom Posts: 1,640	The check has a approval amount, you can only write the check to that point. if its past that point it will bounce. And Pentagon is not a "Online Credit union" they are on almost every military base. he has no reason to deny it

04-20-2009, 11:35 AM	#10
Vash Drives: 00 Blazer Join Date: Aug 2008 Location: Texas Posts: 5,104	I'll translate the salesman speak for you with my terminator mode on. "The CU won't let us pork you with overbloated doc fees and overpriced paint and underbody sealants etc etc". Terminator translation mode... OFF

04-20-2009, 11:51 AM	#11
toehead93 Drives: 2014 2SS/1LE Join Date: Feb 2007 Location: wpb fl Posts: 3,136 View My Garage	One of my banks told me the check has to be written for the sale price of the car (or MSRP). Sales tax, registration, mark-ups, and any other charges cannot go onto the loan. So even if I'm approved for $40,000 and MSRP is $36,000 I can only write the car loan for $36,000. I have to use my down payment to pay the extras. The lenders don't want to be upside down the first day, normal depreciation is bad enough.