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Has anyone had a Peoplefirst.com "draft" refused? I had planned on using them when my car arrives. I had the good fortune to sell my present driver to a private party prior to my Z arriving. I got a great price in this soft market and things were looking up. However, when the buyer attempted to use a Peoplefirst.com draft for payment the dealer refused to accept it.
The dealer claimed they had troubles in the past using "drafts". I think they just wanted to make a few more bucks on my purchase.
It doesn't seem fair that they have the right to refuse the funds from Peoplefirst. I even suggested that they wait for the draft to clear the bank, but they would not consider accepting the draft under any circumstances.
I've gone in with peoplefirst drafts for my last three car purchaeses and each time was told the same thing; takes up to 30 days to get their money...despite what peoplefirst says..that they fund the loan the day they are fax the docs.
but each time, the dealer found a lender to match the rate and term. its a good negotiating tactic on the financing to at least have one approved.
well this year my family and i bought a total of 5 cars all thru online banking solutions some offered blank checks other where just paperwork
Honda civic dx 2002 4 - door = americredit bank paperwork
Honda crv 2002 = e-loan paperwork
Nissan altima 2002 = drive home blank check
Toyota echo 2002 = americredit paperwork
Nissan 350z 2003 = Peoplefirst blank check
i was involved on all 5 car transactions and helped my family work the deals i mustv visited more than 20 dealers this year some dealers gave a really hard time about the online loans some did not but all tried to match the offers some gave bs stories ect ect..
you see the problemlies that dealers get an extra % if they get the loan thru the dealers banks, dealer do feel more comfortable with the blank check process
I have gotten my last 2 car loans using Peoplefirst.com and using their blank check.
It works really well for me and for the dealer... it's just a check. They take it to their bank and cash it, which "activates" your Peoplefirst.com loan. Done deal!
There have been threads on this in the past and I do believe you can sign your name on the check and cash it at your bank and write a check with your account. My warning in doing this is to make sure the funds are available ( that the check cleared at the banks end) prior to writing out your check or you will bounce a check at the wrong place.
This is simply dealer Bullsh*t pure and simple. They don't want you to use someone else because they want to get your financing so they can collect the interest. Hey, if they'll meet or beat Peoplefirst, then no problem. BUT if they don't and they still won't accept your Peoplefirst check, call Peoplefirst on the spot (it's a good idea to have a cellphone to do so, since your dealer may not let you use their phone to call them....more on this in a minute), tell them the situation and they will BEND OVER BACKWARDS to accomodate you. I dealt with them and they were FIRST RATE all the way. Someone else posted your exact problem. They called PF and told them. PF then sent the funds to the buyers checking account so he could simply write out a personal check to the dealer or get a cashiers check from his bank. It helps to know this all in advance so let your dealer know a few weeks in advance that you will be using PF.
I needed to fax the dealers offer to PF so they could beat the dealers interest rate and the dealer (knowing that they would get beat on the rate by PF) refused to let me use their fax machine. I then took the dealers rate, called PF the next day and they gave me a refinance loan (at a better rate than I got from the dealer). I paid off the dealers loan in full with my PF money (so the dealer got ZERO interest off of me!) and now I simply pay the PF refi loan at the better rate.
When I ordered my Z from Dan Z, that was the one thing he made sure to tell me. Smithtown doesn't accept drafts now, only bank checks. When I asked him why, he explained that they were often waiting 30+ days to see the actual cash from the "draft". That is money the dealer is losing in its own interest payments they have to make while they wait for the cash. Interest on the drafts is being made by Peoplefirst.
Dan or the dealership had no "hidden agenda". It doesn't mean I have to go through them, it just means I need to have an actual check. That leaves many options open, including Peoplefirst, and isn't much of a hassle as long as I know in advance.
That's why Dan made sure to tell me about it now.
Geez, its not ALL a dealer conspiracy, just most of it.
This is not a good idea and could get you in trouble. You are applying for a car loan. They want to be the lien holder. I don't believe you can cash it at the bank. I believe the check says 'payable to any license new or used car dealer in the U.S.'.
Quote:
Originally posted by dobbuster There have been threads on this in the past and I do believe you can sign your name on the check and cash it at your bank and write a check with your account. My warning in doing this is to make sure the funds are available ( that the check cleared at the banks end) prior to writing out your check or you will bounce a check at the wrong place.
The Peoplefirst BlankCheck I had was a bank blank check for me to fill out. The BlankCheck is a bank check and paid through US Bank. It's stated on the face of the check. There is nothing legally wrong with it the dealer just want you to use their resources and get their commission. It's all about getting more money in their pockets.
The Peoplefirst BlankCheck I had was a bank blank check for me to fill out. The BlankCheck is a bank check and paid through US Bank. It's stated on the face of the check. There is nothing legally wrong with it the dealer just want you to use their resources and get their commission. It's all about getting more money in their pockets.
the truth has been spoken its all about the benjamins
Yes, I had this exact problem, do a search and you'll see my thread.
The dealer wouldnt even accept a cashiers check from people first (which is utter bullshift from the dealer, but, well its water under the bridge now).
[i]... I then took the dealers rate, called PF the next day and they gave me a refinance loan (at a better rate than I got from the dealer). I paid off the dealers loan in full with my PF money (so the dealer got ZERO interest off of me!) and now I simply pay the PF refi loan at the better rate. [/b]
Dr. Bonz, That's one of the best car buying stories I've ever heard. You rock!
All due respect right back atcha Sage, but I'm tellin' you that the dealer could very well have taken your PF check. Hell, 90% of the dealers DO take them. So why would it be any different at the dealer you mention? It is a check. A blank one at that. You fill in the amount and sign it and give it to the dealer. Even if it IS true that they have to wait 30 days to get paid, it is STILL all about $ and they simply want more of YOURS!
Originally posted by abz123 This is not a good idea and could get you in trouble. You are applying for a car loan. They want to be the lien holder. I don't believe you can cash it at the bank. I believe the check says 'payable to any license new or used car dealer in the U.S.'.
Sorry, but you are mis-informed. It is NOT a cashable check. It looks like a check and YES, they obviously FOOL consumers. We accept drafts sometimes, but the DEALER has to jump through a bunch of hoops to ACTUALLY GET PAID!! Read the back, the fine print.
Dealers most often can beat the rates, and by doing so, and usings local sources, control the transaction to make sure they get paid.
Drafts are NOT CHECKS!!! They (Online lenders) purport that you can just walk in and sign away...not that simple for the dealer to actually collect the money.
I am used to being flamed since I am a dealer, but at the end of the day I do the same things as everyone else.
In a sense you are right, it is about cash, the dealer ACTUALLY getting PAID for the car...not the 100-150 flat fee paid by a lender.
Originally posted by g35or350z What???? They dont want to work for their money??? Too much of an inconvenience to please a customer?
It has nothing to do with working for the money, it's about getting paid for inventory. If you actually had some knowledge about the operation, you may have an argument. If I can offer the same, or better rate, why does it matter. The point is, the marketing of Peoples First makes the consumer think it is easy, and when it is not, the consumer blames the dealer....go figure. Does your business accept third party checks?? Does it accept what LOOKS like a check...but requires a lot of extra phone calls, documentation, faxes....??
No, dealers are not required to accept these items.
KayserNissan
My Nissan dealer had no problems with taking my People'sFirst check. He said the best he could go was 4.99%, my Peoplles first rate was 4.75%. He said he couldn't beat that! Filled in and signed the check no problem with acceptance and drove off in the car.
The fact that some dealers accept peoplefirst checks shows to me that they will go the exra mile to make a sale. Those that dont...well, they dont. Some dealers actually have a Neiman Marcus "can do" attitude. Maybe yours doesnt.
Of course the dealer will get paid for their car by people first. You make it sound like they never do. If dealers didnt get paid for their car by peoplefirst, I dont think ANYBODY would accept their check.
Peoplefirst.com Loan Problems
2003 = Peoplefirst blank check
