they might take my car back cus something happened with the bank that was financing me and the bank wants to not help me out. o.O does that even happen? Im a 21 year old with like 1 1/2 credit(not bad but new), and the dealers lied to the bank that i make 6400 a month blah blah and I guess the bank found out or something?I mean I have the money to back it up but my parents credit isnt so good cus of little things+'business friend' ran away with their info and used em everywhere. anyways do you think if they take back the car they are gonna refund the deposits i gave em? (6000 down) Someone sell me their car I found out I can get about $25,000 financed so i have a budget of like a $30K used car :P

 

Secure your own financing. Sounds like you went with the dealer's, however 1) you don't have to, and 2) they usually have worse rates than any place you can find yourself.

 

You have a 30K budget? Man, I'd find the nicest '04 or already dumped '05 and call it good!

 

just waiting for their phone call. just in case im looking for a PPW 04 Z manual

 

get one modded for 30k. You could find one sc`d or TT`d, with nice rims, and an aftermarket nav and sound system.

 

There's plenty of people selling their used Z's all modded up for ya.

 

YES! If they failed to get you financed, they have to give you ALL of your money back!

 

Um, they can't take your car back unless you default on the contract. Just make sure you make your paymernts even if you have to make them directly to the dealership.

They need to find financing for you at this point.

And just a footnote: The dealer didn't lie on your app, you did. Even if they put an inflated income on there, you signed it.

 

+1

 

I'm sure the contract states that one of the clauses is financing. Of course they want you to finance with them as they get a cut, but they are not obligated to finance the car for the customer. This isn't the first time this has happened (I mean in general, not specifically involving this person and this dealer) and who out of this transaction (the dealer or the customer) do you think has their donkey covered?

I would not mail payments to the dealer, but you should talk to someone else about this.

 

Actually I don't think so. Unless things have changed. I believe once the contract is completed financing is supossedly complete. When I bought my last Maxima I initially leased it. The dealer misquoted the mileage fees on the contract & the bank rejected it. The dealer contacted me & wanted to redo the lease. I said fine but at the same mileage rate which of course they couldn't do. I had make 2 payments to the bank even though I didn't recieve any loan documentation from them. They of course never cashed my checks.

The dealer was livid over the fact I refused to renegotiate a lease due to their mistake and threatened to repo the car claiming they have the right to carry the lease or loan & since they hadn't recieved payment I was delinquent.

I threw the key's at the owner and said fine but I'll own this dealership in 6 months.

They backed down. In the end we ended up working out a purchase for the vehicle which allowed me to get the car much cheaper in the long run.

Granted a "lease" isn't the same as a purchase but I believe once they let you drive off the lot with the car it's yours.

It doesn't really benefit them to take it back since they can no longer sell it as new. I think they'll be scrambling to get one of their lenders to fund the loan.

Don't let them BS you on what you rights are. The only "hole" I see on this is the faulse info on the app. Since it's usually the customer who is liable for that information. So they do have a little ammo I think unless of course they did in fact provide faulse info without you knowing.

 

In some contracts, the financing is not necessarily compete when you sign it, but it will state so if that is the case. I went through a similar situation, but I was told, as was my wife who was sitting right beside me, that the financing was approved before we signed. A few days later, the dealer wanted to know where my bank's check was, but seeing as we couldn't beat their rate, we kept it. They tried claiming that the financing was never approved, and wanted to know when we were going to bring the car back. I stood firm and demanded that they figure out the financing, or I'd see them in court. The result: 1) the salesman was fired, 2) we got our financing at the rate we initially agreed upon, and 3) the dealer paid the difference on interest the bank offered, which was a 5% difference, I figured it to be a few thousand dollars.
If the dealer actually told you that the financing was approved (you'd better be able to prove it), then stand your ground and fight it. Otherwise, they will win every time.

 

Yes, the paperwork usually does say something to the effect of "as long as financing goes through," so they can take the car back if they want ... fact is that they don't want to. As someone else said, they can no longer sell it as new, so they would lose a great deal more taking it back and reselling it than they would if they just suck up a bit of a loss on financing (or lease rate, or mileage, or what have you in any particular case).

Unwinding a deal does happen. If there is no way no how they can obtain financing for you, they really have no choice but to take the car back. But they will try everything they can to NOT do that.

 

I have to ask someone to be sure, but I was under the impression that although they let you drive off the lot with the car (6 hours later), that was due to your downpayment and signature on the contract promising to pay. The actual funding of the loan isn't complete that day.

This wouldn't apply if you went to your bank for financing and all the docs were signed and they gave you the check. I believe at that point everything has fully funded and it's a done deal.

Isn't there someone on this board who writes loans or works at a bank and can clarify?

 

I use to work for a bank (several actually) in their "indirect lending" area (auto loans). You are correct, the loan isn't funded but the dealer has "shopped" the loan to 1 or more of his lenders. Usually either Nissan or the bank that finances his flooring (inventory) and has a promise to underwrite based on the information provided for the borrower. This is done prior to typing the contract since they need to determine who the lender will be and what the interest rate will be.

The bottom line in this case is the dealer wanted to make the deal and thought they had a lender prior to initiating the contract. The question remains on if the dealer did in fact falsify the application without the customers knowledge (which I doubt) and why the lender backed out. It seems they saw something that lead them to believe it to be a "straw deal" (aka shadey).

 

I don't write loans but I must say that loans are almost never approved the same day you sign for the car. When I got my Z, I talked the dealer down to a lower APR mainly so they can give me a little better deal than I wanted. After signing papers Nissan Motor Acceptance Corporation receives the information (After the Head finance officer at the dealership approves it) and they make the final decision! Unless you bring in a loan of your own, NMAC will have to approve whatever APR is agreed at the dealership. If they do not approve, like in my situation, they will come back with a counter offer or revoke the whole deal all together!

 

Partially true. The dealers have "guidelines" to follow for each of their lenders so that they know what the minimum requirements are for that lender.

As for NMAC and other lenders the interest rate charged is a fixed amount based on a credit score range. The only flexibility with the rate being charged the customer is the "spread", which is the dif between what the lender charges the deal and the dealers markup which may be as high as 2 percent. The spread is kicked back to the dealership as profit.

 

Hmmmm I didn't know that, that's good info. for the next time I do buy! I signed for 6% lower than my guideline NMAC had given me though!

 

Based on when you probably made your purchase 6% is a very good rate.

My rate was 4.99 but I bought in 03, put over 50% down & had a credit score of 814.