Financing denied. Yo Yo or Spot Delivery

[Apexcars]

Dealers for many years now would rather do financing than a cash deal. Go look at the spreadsheet of dealers selling below invoice. Almost all of them will require you to finance through them to get the best percentage off.

When I bought my current truck, I was looking at the incentives through Chrysler. I took the cash back deal and I asked at the dealership how long I had to keep the Chrysler financing because I had a better rate elsewhere. They told me to wait a month ”to make sure all the paperwork went through.”

I know a guy that used to be an F&I guy at a Honda dealer. We were driving past a rural Chevy dealership and he told me that the finance manager at that dealership threw him off the lot once. Said he went for a job interview there. Told the manager, “Look, I've been doing deals on Hondas where people with good credit come in to buy $30,000 cars and I’m screwing them over all the time. Think how much money I can make for us both screwing over Chevy customers, they usually don’t have credit and you sell $80,000 vehicles.” He said the manager told him they don’t operate like that and this guy laughed in his face and told the manager he was full of s. They had words after that and he got escorted out.

Dealers can definitely “work” your deal to their advantage either way but it’s easier when you finance. I always tell people to get the best price on the car and any trade. The dealer will then have to make his money on the financing. Then you can just refinance later and you got the best price and the good interest.

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[dahacker]

Apply with Chrysler Capital directly on their website and they’ll tell you what your rate & term is.

“apparently I’m financing…” is not a good way to go into this.

Good advise to just apply to Chrysler Capital directly first.

I've been kind of lackadaisical about it, because I've got no qualms to just walk if the rate is annoying and just return in two days with the check from the Credit Union. Usually, I just show up with the check to begin with.

I've got a bit of extra pressure in that the original plan of refinancing in 2-3 months with the Credit Union is probably going to not go well since the Fed has already indicated they are bumping rates another 0.5%. Rates are already up 0.25% in the last month.

 

[OhioJeeper]

Know the price of the vehicle and any doc fees in advance. Write a check or arrange financing in advance. You have less leverage the moment you sit in their chair.

 

[RubICON1]

I will never haggle or deal a trade in at the dealership again. Years ago, I took my 2011 and sold it outright to Carmax for $2K over what I owed. This was the easiest thing ever. Since then I have sold them a total of 4 vehicles, wife's included all for more than I believed they were worth.
It is so easy to do and it never complicates the buying process. Now with the %'s changing that is totally F'd up! Walk Walk Walk away...

 

[Apexcars]

I will never haggle or deal a trade in at the dealership again. Years ago, I took my 2011 and sold it outright to Carmax for $2K over what I owed. This was the easiest thing ever. Since then I have sold them a total of 4 vehicles, wife's included all for more than I believed they were worth.
It is so easy to do and it never complicates the buying process. Now with the %'s changing that is totally F'd up! Walk Walk Walk away...

Just remember, when you trade in a car you only owe the tax on the difference between your trade and the new car. Sometimes it is worth it to trade at the dealer for the tax savings even though you might not get quite as much for the trade. Have to do the match and see which is better.

 

[cbrenthus]

Just remember, when you trade in a car you only owe the tax on the difference between your trade and the new car. Sometimes it is worth it to trade at the dealer for the tax savings even though you might not get quite as much for the trade. Have to do the match and see which is better.

Yup, if the dealer is giving you $50K for a trade in an area with 6% sales tax, you'd need to sell the same vehicle for $53K just to break even.

 

[WasMFD]

Ordered a JL and purchased it w/a trade in. I was pre-approved without the trade at the same rates as dealer. HOWEVER, I went with the dealer's financing after being approved by them and their bank. ONLY reason I did was the due the being lazy and just doing the deal that day instead of tomorrow. 3 weeks later they call and tell me the financing didnt go through and now the terms and rate are much higher. They have since sold my Trade In and I have 1200 miles on the new JL. Has anyone heard of a New car being part of a Spot Delivery Scam or Yo Yo financing. Both of which are illegal in both Florida and Georgia. Bewildered here; Get my Trade back plus the money they sold it for and give them back the new JL? I can see a 3 day screw up but 3 wks is insane.

MORE UPDATES: Dealer lowered the price of the JL to reach the monthly payment of the original deal. This was because they could not match the original deal's rate. Then they started play a shell game and full court press to close(I am out of town for work and was planning to get home within two days BUT had to be NOW). This time via Digital Signing emails there were several new docs about financing falling thru and how much I will owe them 'IF THEIR BANK FALLS THRU'....50 miles per day and anything over is charged at 55¢/mile. Didnt like the pressure after 23days of driving the new JL so I went with my original financing(CREDIT UNION). I showed up with a draft for the full amount and they DECLINED the DRAFT for the amount owed on the new Sales Contract. Since they lowered their price to accommodate my old monthly they said my DRAFT was considered a cash deal. Just more BS and Snake Bites. 'We dont make anything on any of our financial relationships' Yet they refuse a $50K check? I am on my way home(by the way, I flew home two days earlier to solve this issue)to get the JL and give it back to them....if they can pay me for my JK. *spoke with several lawyer and they said this is a old school bait and switch and even though its a crime Dealers get away with it because the laws protect them for not days but rather weeks and up to 30 days to screw round with the buyer. All three lawyer said this has become increasingly popular since used cars are in high demand so they are targeting people with trade ins. I will let y'all know what happens tomorrow

 

[WasMFD]

Just remember, when you trade in a car you only owe the tax on the difference between your trade and the new car. Sometimes it is worth it to trade at the dealer for the tax savings even though you might not get quite as much for the trade. Have to do the match and see which is better.

The very reason I traded in....taxes were half

 

[WasMFD]

Guess I'm not following. If you already took delivery of the vehicle and signed the financing paperwork, they can't just change your terms, unless of course you signed some type of contingency financing. I'd definitely be exposing them on one of the local TV stations and an attorney of course, but what does your financial docs say?

Yes, its a matter of principal with me at this point. I am old with excellent credit and no need for a Wrangler. Just want one for hunting and camping. I really do like it but dont love it more than my ethics. Already called in a reservation for the billboard 300' in front of the Dealership. Not cheap billboard.....but totally worth it ethically speaking...lol

 

[WasMFD]

That is horses**t. I have been doing auto finance for 25 years and have never run into that with anyone that has excellent credit. Money moves so fast in this industry that they should know within a day that there would have been in issue.



I would ask them what the new amount to finance it supposed to be and go to your credit union and get a check for that amount and bring it in.

Did that and they refused the Draft for the new amount. Price was ONLY good with their financing

 

[Some Random Guy]

MORE UPDATES: Dealer lowered the price of the JL to reach the monthly payment of the original deal. This was because they could not match the original deal's rate. Then they started play a shell game and full court press to close(I am out of town for work and was planning to get home within two days BUT had to be NOW). This time via Digital Signing emails there were several new docs about financing falling thru and how much I will owe them 'IF THEIR BANK FALLS THRU'....50 miles per day and anything over is charged at 55¢/mile. Didnt like the pressure after 23days of driving the new JL so I went with my original financing(CREDIT UNION). I showed up with a draft for the full amount and they DECLINED the DRAFT for the amount owed on the new Sales Contract. Since they lowered their price to accommodate my old monthly they said my DRAFT was considered a cash deal. Just more BS and Snake Bites. 'We dont make anything on any of our financial relationships' Yet they refuse a $50K check? I am on my way home(by the way, I flew home two days earlier to solve this issue)to get the JL and give it back to them....if they can pay me for my JK. *spoke with several lawyer and they said this is a old school bait and switch and even though its a crime Dealers get away with it because the laws protect them for not days but rather weeks and up to 30 days to screw round with the buyer. All three lawyer said this has become increasingly popular since used cars are in high demand so they are targeting people with trade ins. I will let y'all know what happens tomorrow

Dumb question, did you offer to pay the original amount they attempted to finance or the reduced amount they attempted to offer to stick with their financing?

 

[Nitehawk92]

I went to the dealer on 4/27 with my Pre Approved loan from my Credit Union. It was still at 2.29 for 66 months. A preapproved loan will take away any chance that the dealership will try to screw you on the financing. Check with your bank or credit union to see if you can get a pre-approved loan before you go to pick up your vehicle.

 

[bohnster]

I was cheating on her with an uptown girl that drives Magnum's Ferrari. Who can't resist that? As you see, the truckster is way better than any Jeep. It clears way more air. Plus, you can easily haul a dead aunt on the roof (show me that with a Jeep). As for theme park employees, I only take them hostage if I carry something that could cause an infection.

You forgot towing capacity. Remember Dinky...

 

[Rustynail11]

The very reason I traded in....taxes were half

I knew this about the tax and when I was buying my JLUR in March the dealer lowballed (way below book) the trade and then added in the $2600 tax savings on what they giving me and tried to convince that was a good deal. We went back and forth about it and I laughed. I ended up selling the car to another dealer for $6500 more (Just a little above book) than what they wanted to give me so I still came out $3900 ahead. Then they tried to give me 6% financing (my credit score is at 800) so I went to my credit union and got 1% and showed up with a check. After I declined other add on's from the finance manager he told me I was difficult to work with and didn't know how I expected them to make money.

 

[Craigger]

Just remember, when you trade in a car you only owe the tax on the difference between your trade and the new car. Sometimes it is worth it to trade at the dealer for the tax savings even though you might not get quite as much for the trade. Have to do the match and see which is better.

True in many states but not California. They want their taxes so you get screwed on this (no limit to how many times they'll tax a car every time it's sold )

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