Dealer Worried about Pre-Approved Loan Check (PenFed)

[Transfusion]

Now that the car thing is worked out I'm going to laugh like hell at this,
so funny and accurate.

Originally Posted by Vash

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

[11cyberV6]

financing through the dealer is not always a bad thing if u actually know what your doing and not just some idiot who buys a couple cars and thinks he knows how the business works...yes the dealer is allowed to mark up points within a 1.5-2 limit...but they also get a much better buy rate since they do 100 loans a month with banks compared to joe shmo who does 1 loan ever 3 years, so the best way to have your cake and eat it too is to go get approved for your best rate possible at your local bank, present the rate to the dealer and tell him he can have your loan business if he beats it, and they will most def beat it. so outside financing is def not best, its actually usually higher than what a reputable dealer can get you

[mexiken]

Originally Posted by 11cyberV6

financing through the dealer is not always a bad thing if u actually know what your doing and not just some idiot who buys a couple cars and thinks he knows how the business works...yes the dealer is allowed to mark up points within a 1.5-2 limit...but they also get a much better buy rate since they do 100 loans a month with banks compared to joe shmo who does 1 loan ever 3 years, so the best way to have your cake and eat it too is to go get approved for your best rate possible at your local bank, present the rate to the dealer and tell him he can have your loan business if he beats it, and they will most def beat it. so outside financing is def not best, its actually usually higher than what a reputable dealer can get you

This seems to work. I got approved for 2.9 APR for 60 months through my Credit Union that I joined when I purchased my first new vehicle and the dealer said they would beat it.

[tmandoug1]

Originally Posted by Embalmer

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???

I have a Pre- approved through Navy Federal for my new ZL1 and I showed it to my dealer yesterday and he was actually happy to see it. You are good to go man no need to worry.

[cadyshac]

Tell the dealer you will finance thru him if he can give you a lower rate than PenFed.

[BrutalSS]

Originally Posted by Embalmer

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???

As a former finance manager, there are reasons to do your due dilligence with those, you can get screwed big time by them. They will only allow a certain amount of Black Book value to be financed, usually it's 80% or so. So often, a good chunk down is needed. You also have to fax over everything before hand to make sure you are going to get funded properly and not screwed out of money. Sadly with these, they actively look for ways to not pay the dealer.

They are frustrating to deal with and do take a while to get done, but they can be done. I haven't refused any, but more often than not, I'd get them a better deal with in house financing (better rate, less money out of pocket, etc)

[fsrtwo]

I would return the favor and tell the dealer that because he questioned Pentagon Federal, they were concerned you were not getting a good deal and they found the car $2000 cheaper at another dealer.

[JimE]

Originally Posted by 11cyberV6

financing through the dealer is not always a bad thing if u actually know what your doing and not just some idiot who buys a couple cars and thinks he knows how the business works...yes the dealer is allowed to mark up points within a 1.5-2 limit...but they also get a much better buy rate since they do 100 loans a month with banks compared to joe shmo who does 1 loan ever 3 years, so the best way to have your cake and eat it too is to go get approved for your best rate possible at your local bank, present the rate to the dealer and tell him he can have your loan business if he beats it, and they will most def beat it. so outside financing is def not best, its actually usually higher than what a reputable dealer can get you

This has worked in my favor for my last two purchases. In both cases, the dealer offered a better rate than my credit union (which was already a good rate).

Too many people just "assume" the dealer is out to gouge them and don't pay attention.

[stoopid]

Originally Posted by Vash

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