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This is the 3rd dealership I've visited, and one of many that I've checked on the Internet. They have the lowest price for the car I want. And the car has a good Carfax report. This is the first time in 9 years that I'm buying a car. So here's what happened.
3 days ago I went to the dealership, I decided on the car, agreed on a sales price and down payment, told the salesman that I was pre-approved by my my credit union with an APR of 5.5%, he wrote "5.5% credit union" on the sheet with the price and down payment, the manager signed it.
The manager asked me if I wanted to drive it home, by this time it was after 5:00 and they close at 5:00, the finance manager was gone. He said I could come back another day to sign all the paperwork, get my car inspected (my state requires annual inspections for vehicles), and get the scratched hubcap replaced. I also told the manager that I was pre-approved for financing through my credit union, offered him my credit union's business card, he said that's ok we'll take care of that when you come back.
I told the salesman that I might be interested in financing through the dealership if they have a lower APR, but my credit union may match the dealership's APR if the dealership's is lower.
I called the salesman yesterday morning, he said the finance manager was available today at 4:00 and 7:00, I chose 4:00 and got out of work 1/2 hour today early to be there. My mom, who came with me 3 days ago to test drive and buy the car, also got out of work early to meet me there.
My mom and I got there just before 4:00 and after waiting until after 5:00 (about 5:15) the finance manager finally saw us. The salesman apologized and said it was ridiculous that we were waiting that long. While we were waiting we heard a saleswoman tell her customers who just arrived for the 5:00 appointment that she tried to call them to tell them that the finance mgr was backed up. That's nice because no one called me to tell me that.
In the finance mgr's office I signed a 90-day warranty that's required by my state. That's not an extra charge. Then he gave me a second sheet of paper to sign that says I choose not to purchase GAP insurance (I'm not leasing and I don't want it). On that paper I noticed that it said I had a 5.69% APR through a bank. It also said the term is 60 months. But last week when my credit union approved me for 5.5% they approved me for 48 months. I forgot to tell the salesman on Saturday that my pre-approval was for 48 months, but when I told them my APR on Saturday I don't think they should have assumed it was for 60 months.
I ripped up that paper, took it with me, and left.
The finance manager's reasoning was he took a little bit off of the price and I was saving about $50 by financing through them. Whatever.
I told them that I'll wait for my credit union.
Also, today the salesman told me that they can't "deliver" the car without the right financing, they would lose their jobs if they "delivered" the car without having my financing set up correctly, it would be illegal for them to let me take the car home, the credit union is closed (obviously, it was after 5:00). But today is the 4th day I've been driving the car. The manager is the one who asked me if I wanted to take it home when I was there 3 days ago.
I told the salesman that I'll just take my plates off of the car and come back another day. He took my plates off and put them in the car, put the dealer plates back on, and gave me the key. Again, I drove away with it. After the spiel about not being able to deliver the car without paperwork that said that I was financing through my credit union.
Before I go back I'll call and make sure they have the paperwork set up to say that's it's financed for 48 months with the correct APR. If the dealership has a lower APR and they say my credit union can't match it then I'll verify that with my credit union first.
I don't know why I thought they would tell me before I came back if they were planning to give me a different APR.
Anyway, thanks for reading. If you have a similar story or any advice please share.
You are getting scammed...! The want you to drive the car as long a possible. they know that after diving the car for several days you will do anything to keep it..! They give it to you knowing you will love driving it and make any deal their black little hearts will offer you.
Walk away and find an honest dealership... They are trying to snow you, don't fall for it.....
Why is the dealer doing the paperwork for YOUR credit Union? Go into your credit union and give them the information, THEY will send the right stuff to the dealer to get the information needed for the loan and then you sign everything at the Credit Union NOT the dealer. You walk into the dealer, they hand you the keys - done deal.
Don't EVER let a dealer do paperwork for you if you are getting outside financing through your own bank or credit union.
By allowing you to have possession of the car ... and driving it for some number of days without a completed deal, they are trying to put you in a position of having to buy the car .... perhaps at some less than advantageous terms/price/financing/extra monies to you. At this point, you don't have a completed transaction.
The best thing you can do is to take the car back to the dealer and leave it with them. Put no more miles on it, which could obligate you for fees and charges if your deal isn't completed.
At such time as you can get to your credit union with the car sales order/purchase agreement, which shows them the information they need for your financing, they can get your finance deal worked up. You sign the finance deal with the credit union and they will issue a check to the dealership for the payment of your car, or a transfer of funds to the dealer if that's how they do it in your state.
That's the point at which you can finish the deal. Be sure that you've got a completely filled out purchase agreement, with no blanks to be filled in later with additional fees or charges. You want the absolute final dollar amount of the deal, your down payment, and how much money you need to complete the transaction from the credit union.
Dealers do this so that the deal is always left "hanging" with loose ends that crop up at the end of the deal ... usually with more money owed to the dealer. You don't need to play their game.
Thanks everyone for reading my long post and responding!
Today I went to the dealership's web site and found the e-mail addresses for the President/CEO of the chain of dealerships and the General Manager of the location I visited. I sent them a message telling them everything that happened. The President/CEO responded quickly with a message saying sorry for any confusion they caused, thanks for your patience with us, and he'll have the Asst. Manager call me. The General Manager is on vacation until Fri. and the President/CEO is out of town until Thurs.
Soon after he e-mailed me the Asst. Manager called me and left a message. A few hours later the President/CEO sent me another e-mail saying the Asst. Manager tried calling me, here's the number, thanks again for your patience, let me know if you need anything.
Quote:
Originally Posted by Bydand
Why is the dealer doing the paperwork for YOUR credit Union? Go into your credit union and give them the information, THEY will send the right stuff to the dealer to get the information needed for the loan and then you sign everything at the Credit Union NOT the dealer. You walk into the dealer, they hand you the keys - done deal.
Don't EVER let a dealer do paperwork for you if you are getting outside financing through your own bank or credit union.
Actually the dealer is just faxing the bill of sale to the credit union. The credit union is doing everythng else. The loan officer at the credit union told me that after they receive the bill of sale from the dealer and the insurance binder listing the credit union as the lien holder from my insurance company they'll issue a check to the dealership.
When I was at the dealership yesterday they had the sales price and the down payment correct, but in my e-mail today I stated that I want all of the numbers sent to me before I go back in. I told them I want the out-the-door price.
Do not buy their gap insurance. It is very costly from the dealership or credit union.
Buy the gap insurance from your auto insurance company, much much cheaper!
Gap insurance covers the difference between loan value and auto value in the case of an accident where it is decared totaled.
I buy the honda, this one soon 8 years old! I go with my credit union, and, sometimes take a loan
with my own money, secured I do think! I hate dealing with sales people! However, the Advisors
Honda has are way ok! I always have got new, and the honda! Oh, and this car, and my trade Honda,
I would not even speak to them, when the Guns came out! Anyway 30 days later, I did call my sales person, and did say a sale is 2000 away! I need pinstripes, and an alarm, Bingo he did it! Oh, then, deliver my car, also he did! Anyway, he did get his commision, and a bottle of wine, for sales, from me!
I also think the dealer did fax all this to my credit union, it took so long, with all this signing, I just said, ok, just pay it off! I think it is a big money
and all the people lock it there money, but us! Anyway, I love my Honda! My dealer had to send the paper work to the credit union, to get the money!
The other factor, is I am in one state, the credit union another! The dealer does do this, to show what we are buying, and then we get the money?
Last edited by maggiekate; 03-26-2009 at 12:27 AM..
On Saturday I told the sales guy at the dealership to contact my credit union. On Tuesday I told him again. When I called him Wed. afternoon at 3:30 he said "I was gonna ask you, when do you want me to fax your credit union?"
When I spoke to a Loan Officer at my credit union yesterday she said she still hadn't received the bill of sale from the dealership.
I spoke to the asst. sales manager yesterday. I told him that I was returning the car and I feel uneasy after what happened. He didn't try to persuade me to buy it. He just said "You don't want the car?!?! Is there anything wrong with it?" An hour later I dropped off the car, gave a sales guy the key, and my uncle drove me home.
I sent an e-mail to the President/CEO to let him know. He responded quickly, saying he's sorry they mishandled the purchase, he can have a General Manager from another location help if I wanted to go to another dealership in that chain, he would like to make up for their mistakes, and he's still out of town or he would be involved immediately. He even gave me his cell #.
Quote:
Originally Posted by ferretkona
Do not buy their gap insurance. It is very costly from the dealership or credit union.
Buy the gap insurance from your auto insurance company, much much cheaper!
Gap insurance covers the difference between loan value and auto value in the case of an accident where it is decared totaled.
That's why I chose not to purchase GAP insurance, especially since I'm not leasing. I was prepared to say no to GAP insurance, fabric protection, VIN etching, and whatever else they try to sell you in the finance office.
ETA: The dealership didn't give me anything to give to the credit union. If it's their procedure to have the customer do that they didn't tell me. Last time I bought a car the dealership sent the bill of sale to the credit union - I didn't have to take anything from the dealer to the credit union. One of my co-workers bought a car recently and the dealer dealt directly with the credit union.
Never had any problem like that and I have financed thru banks;credit union and manufaturers. I can't believe they thought you would notice it.Sounds liike the CEO knew exactly waht was going on to me;its just a excuse.Sales managers take their lead from policy writen or unwriten, They probably get by with many that have the car wants and don't read anyhting they sign. I skip that dealership and report what happened to the BBB,
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