Dealer taking car back!!

[AnnaBear@SpartaChevy]

Originally Posted by 2010SS2SS

In Michigan that is right but it doesn't cover ALL states!



Hmmmmmmmmmm....Hope thats a joke because then it wouldn't be a SPOT delivery!!

Originally Posted by Earthshaker6

She is talking about spot delivery on an estimated rate after at least one bank has approved the loan. Dealers do this because they know they have the deal approved...but they expect a better rate from another lender. They will "spot deliver" the vehicle on that lender's paper and may have to call the customer back in if that does not go through.

Well, I stand corrected be 'He Who Has Been In The Car Biz Over 20 Years'...

I have ONLY been in the car business for just over 7 years, and I have only worked at one car dealership. Here in Sparta, 'Spot Delivery' means that a customer takes delivery of their car 'On The Spot'. Meaning, they don't have to make an appointment to come back in a day or two or three. They take it home with them NOW. However, IN MY SEVEN YEARS HERE, WE HAVE NEVER DELIVERED A CAR WITHOUT PRIOR APPROVAL FROM THE BANK. We just would NEVER do that.

I had no idea that this is a regular practice out there.

Thank you for the enlightenment.

[Blitz]

I have not read all the posts so forgive me if I am repeating info here. This does sound like a pretty shady scam, and may be legal depending on the state.

What I would do, is shop around some banks with a co-signer and then go back to the dealer with that. They will retain the down payment (bank should account for that in the LTV ratio) but they will in turn lose out on the kick backs they get from originating the loan. You will also get to keep your car.

I almost always go into a dealership with my own financing (exception being if they have a 0% promo like my Silverado). I also do not tell them I have my own financing secured until the price is set in stone and I have seen their finance offers. A lot of times the dealer will end up paying down points on the loan so I originate through them in the end with a better deal, but I always have my financing secured as a fall back. Also, all inquiries on your credit during a certain (i think 30 day) period for car loans only count as one inquiry so there is no 'penalty' to shop around. This method will always get you the best rate and also you have the security of knowing you are fully approved up to a certain amount before you step foot in the dealership.

[Blitz]

Originally Posted by SteveTaylor

I negotiated a killer deal on a car from one dealer.
I "know" my credit score is 890 from when I did an online loan application.
Signed all the papers, said its good to go...
Manager then comes out & said I was turned down..

I was like yea right, I'm perfect, let me talk to the finance guy here or the loan officer at whatever bank you're using..

Nope..

Then I said is it common for your sales reps & managers to make and approve deals & then back out when they find out the General Sales Manager says no?

I threatened to expose this to the local media down here, and BANG, they gave me the deal..

Azzholes

They probably thought you were full of crap when you told them you had a 890. FICO only ranges from 350-850. There are other indexes out there that go up to like 990 (which is probably where your 890 is on and is still a great score) but most people automatically think FICO.