Financing Mix Up

[zirotti]

I do work in the car business. While I really doubt it is anything shady, it was probably a ****-up by the Finance Manager that he didn't properly submit the paperwork to the bank and the deal got kicked, hence he calling the customer and telling me to come back in and resign the paperwork because "he got him a better deal". It doesn't happen all the time, but it happens.

Some stores simply want to spot deliver the car, and assume that the lender (whether it be GMAC or a non-captive they deal with) will buy the deal.

[Livestrg05]

Thanks for all the replies everybody. Will update tomorrow once I get some more information from the guy

[Berean]

Originally Posted by zirotti

This sounds pretty fishy. They had you approved and signed contracts with one lender, and you drove off the lot. Then, they tell you that they got you a better rate with another lender?

I bet what happened was that they ****ed up the original deal and have to have you resign with another lender because the first wouldn't buy your deal, OR because they are getting a kickback from the new lender.

Who is the dealership?

[oldfriend]

It sounds like you are dealing with a wolf on sheep clothes , in another word a crook

[Livestrg05]

Originally Posted by oldfriend

It sounds like you are dealing with a wolf on sheep clothes , in another word a crook

I'm really starting to believe this. Got a call this a.m. that according to them my return package with the new contracts was never sent. B.S.I handed directly to a UPS guy that we use everyday in their own return envelope. I'm about to do some further investigating to see if they really did receive it - then I can rub it in his face. This guy is either a crook, an idiot or both. I just can't believe I didn't write down the tracking number; I'm really kicking myself.

[Fidgit]

Originally Posted by el ess X

Good luck with all that. I agree, call the original bank and make SURE you don't owe them anything.

You know what really seems to be missing in these types of threads? ......

.... current dealer input from salespeople that cruise the forums.

I never gave it much thought until now. If people that worked in "car sales" environment would step up and addressed on how one could counter stupid stuff like this, it'd surely help.

Maybe they don't because they don't want to divulge their strategies/tactics to separate you from your money. Or maybe they don't want to step on "an industry brother/sister's toes". Or they don't want people to think THEY do it, too. I dunno. There are some honest dealers out there, and those are the successful ones. The ones that hurt are the ones that don't look past the last sale and will do anything, above or below board, to make the sale.

In contrast, when we bought our Camaro, we were treated so well by Eric and the staff at Classic Chevy in Grapevine, TX that we sent him a very nice gift once we returned home. Probably the reason they're #1 in sales.

Most dealerships I've been to, the sales and finance folks work arm in arm and it'd be hard to believe someone in sales couldn't learn the "tricks of the trade" from the finance folks by osmosis at least. It'd be nice to get an honest someone who actually could give the inside dirt on the shady tricks dealers use.

A few years ago, I saw one of those 20/20 shows where a guy went undercover with a hideaway camera at a dealership...wow! They exposed the dealership as a bunch of crooks. They got a good business model and totally did the opposite of what you should be doing. One particularly upsetting deal was how they scammed an old lady.

After I retire, I might go into new car sales and learn those tricks, then post them up as a PSA... Someone needs to do it.

I have worked in the 'car sales game' for many years and I can tell you honestly that anyone who does this kinda of thing would never share why. If it was a trick or a way for them to make money, theyre doing something illegal and would never give up that kind of info, even anonymously.

Originally Posted by zirotti

I do work in the car business. While I really doubt it is anything shady, it was probably a ****-up by the Finance Manager that he didn't properly submit the paperwork to the bank and the deal got kicked, hence he calling the customer and telling me to come back in and resign the paperwork because "he got him a better deal". It doesn't happen all the time, but it happens.

Originally Posted by zirotti

Some stores simply want to spot deliver the car, and assume that the lender (whether it be GMAC or a non-captive they deal with) will buy the deal.

+1 The spot delivery is always tricky when financing in close, but even then, only a shady salesmen/F&I dept would be willing to take that kind of chance...

[trm0002]

Originally Posted by Livestrg05

I'm really starting to believe this. Got a call this a.m. that according to them my return package with the new contracts was never sent. B.S.I handed directly to a UPS guy that we use everyday in their own return envelope. I'm about to do some further investigating to see if they really did receive it - then I can rub it in his face. This guy is either a crook, an idiot or both. I just can't believe I didn't write down the tracking number; I'm really kicking myself.

If you sent it from work, someone must have filled out the UPS tag (unless it came pre-done with the envelope). If it was generated on a computer via the UPS website at work, did they use the company account to generate it? If so, it shouldn't be that hard to find it.

[rydahog]

Originally Posted by Livestrg05

I'm really starting to believe this. Got a call this a.m. that according to them my return package with the new contracts was never sent. B.S.I handed directly to a UPS guy that we use everyday in their own return envelope. I'm about to do some further investigating to see if they really did receive it - then I can rub it in his face. This guy is either a crook, an idiot or both. I just can't believe I didn't write down the tracking number; I'm really kicking myself.

I am not ragging on you, but for the future, in any transaction in the future, weather it's car sales or home purchase, etc..keep copies, at a minumum 3 yrs.. you won't have the stress i feel for you now!! it will be fine, but now is messed up...good luck..

[Livestrg05]

Originally Posted by trm0002

If you sent it from work, someone must have filled out the UPS tag (unless it came pre-done with the envelope). If it was generated on a computer via the UPS website at work, did they use the company account to generate it? If so, it shouldn't be that hard to find it.

It came pre-done with the envelope. I could ask them for the tracking number but don't want to raise suspecions on their part. Normally I always keep copies of the tracking numbers etc. because I do it all day with work, etc. Just must have been in a rush that day or something.

[StreetReporter]

Originally Posted by ffrcobra_65

sometimes, when a dealer says, "oh, we got you a better rate, come back and sign the loan docs," there is always something in it for them and they will ask you for additional money to add to your original downpayment. BS that they didn't get the docs you sent back. You probably didn't read the entire document which says they need more $$ down and when they opened the envelope and saw no check, the new docs went to the trash can and they decided to send out the original docs to the lender.

The "something in it for them" is the loan origination fee. Basically, the lender kicks back some money to the dealer for picking them (it's like the commission a mortgage broker gets).

A Chevy dealer did this to us on my wife's Equinox. We had a deal, but then the F&I manager got a better rate through one of his kick-back lenders. They modified the deal to increase the selling price so the payments were the same. In other words, the lower rate allowed them to meet the same monthly payment but at a higher purchase price!

I called B.S. on the whole thing, and they fixed it.

[Livestrg05]

Originally Posted by StreetReporter

The "something in it for them" is the loan origination fee. Basically, the lender kicks back some money to the dealer for picking them (it's like the commission a mortgage broker gets).

A Chevy dealer did this to us on my wife's Equinox. We had a deal, but then the F&I manager got a better rate through one of his kick-back lenders. They modified the deal to increase the selling price so the payments were the same. In other words, the lower rate allowed them to meet the same monthly payment but at a higher purchase price!

I called B.S. on the whole thing, and they fixed it.

This sounds exactly like what's going on but in the new paperwork I received and signed my payment was actually lower. We'll see if that stays the same though...

[clg_98ta]

Try not to read anything too ominous into it... yet anyway. Give the finance guy a chance to straighten it out. Unless you've signed a new sales contract, there can't be any changes to the purchase price or the amount financed. The only real issue (like you've said) is whether you owe a payment to lender#1 this week. But if you haven't received anything from them, chances are the first loan was never processed, and the dealership is extending you free credit until they get the funds from lender#2.

I do know that dealerships will go out of their way to steer you towards one of their preferred lenders - meaning one who finances risky buyers in exchange for the business from high-credit-rated buyers.

[427Carl]

Do you pay by monthly checks? or is it automatically withdrawn? you were hoping to save 30.00? at least make sure, the first amount, is in your account... You might pay 30.00 more til it gets fixed up... I went to bank, and got a Line of credit... then I wrote check for car. get on the phone and get it fixed....

[zirotti]

Alright, here is what most likely happened...

Finance Mgr tells you your payment will be $600 a month, 4.99% at 60 months. You sign, drive off, all is well. Well, what probably happened was that he sold you on a higher rate than he should have. The bank may have had a maximum rate at say, 3.99%. He was hoping to bump you on the reserve (the money made from the back end of the deal) but then the lender kicked it back saying that the rate was more then they were willing to pay, hence him calling you back and telling you that he "got you a better rate".

So, if it's the same lender & term, but the rate/payement went down, this is probably what happened.