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)))))Update: NEW CAR, I'm starting to get worried...HELP!


JoeSchmoe
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I'm posting this here to get more opinions, what do you think:

Ok folks, the dealer said my papers would be ready by this past Monday and I was virtually approved. But it's almost Friday and near a week since I first went there with my credit reports in hand.....and still no word on my approval.

I still have the car and I love it.....but I'm starting to get worried. I just pulled my privacyguard and there have been 4 bank inquiries since I went to that dealer. Now, when I showed the finance manager my reports he said I would be approved on their Positive Equity Program (bigger downpayment, shorter term, reasonable payments) and I even signed a paper saying I would agree to those terms. They already have the downpayment too.

Has anyone here ever had a car for a week without being approved yet, to only find out you aren't approved?

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<blockquote>Originally posted by JoeSchmoe

I'm posting this here to get more opinions, what do you think:

Ok folks, the dealer said my papers would be ready by this past Monday and I was virtually approved. But it's almost Friday and near a week since I first went there with my credit reports in hand.....and still no word on my approval.

I still have the car and I love it.....but I'm starting to get worried. I just pulled my privacyguard and there have been 4 bank inquiries since I went to that dealer. Now, when I showed the finance manager my reports he said I would be approved on their Positive Equity Program (bigger downpayment, shorter term, reasonable payments) and I even signed a paper saying I would agree to those terms. They already have the downpayment too.

Has anyone here ever had a car for a week without being approved yet, to only find out you aren't approved?

</blockquote>

The contract that you signed, does it say "SUBJECT TO CREDIT APPROVAL" , they (car dealers) do that in CALI, you can drive the car but SOMETIMES they can't get a bank to approve you. ... In SOME cases the bank will require that you make 3 payments to the CAR DEALER and then they can sell the contract to the bank!!!

... So, does your contract say "SUBJECT TO CREDIT APPROVAL" on it.

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<blockquote>Originally posted by JoeSchmoe

I'm posting this here to get more opinions, what do you think:

Ok folks, the dealer said my papers would be ready by this past Monday and I was virtually approved. But it's almost Friday and near a week since I first went there with my credit reports in hand.....and still no word on my approval.

I still have the car and I love it.....but I'm starting to get worried. I just pulled my privacyguard and there have been 4 bank inquiries since I went to that dealer. Now, when I showed the finance manager my reports he said I would be approved on their Positive Equity Program (bigger downpayment, shorter term, reasonable payments) and I even signed a paper saying I would agree to those terms. They already have the downpayment too.

Has anyone here ever had a car for a week without being approved yet, to only find out you aren't approved?

</blockquote>

<blockquote>Originally posted by ADSOFT

The contract that you signed, does it say "SUBJECT TO CREDIT APPROVAL" , they (car dealers) do that in CALI, you can drive the car but SOMETIMES they can't get a bank to approve you. ... In SOME cases the bank will require that you make 3 payments to the CAR DEALER and then they can sell the contract to the bank!!!

... So, does your contract say "SUBJECT TO CREDIT APPROVAL" on it.

</blockquote>

I don't think it said "subject to approval".........It's something I had them write up before I would authorize them pulling my credit, I'm kicking myself because I didn't make a copy of it, but I didn't think it would take a week to get approved.

In SOME cases the bank will require that you make 3 payments to the CAR DEALER and then they can sell the contract to the bank!!!

You mean 3 payments all at once, or over a 3 month period? I'd really hate to give this car back, but I will in a heartbeat if I feel I'm being screwed.

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<blockquote>Originally posted by sisflomi

Why don't you call them Joe and find out whats going on?

</blockquote>

I did call my salesman, to check up......and he said it takes up to 72 hours to get an approval (???). They sent it in on Monday morning, which is true because thats when the inquiries started popping up on my report.

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<blockquote>Originally posted by ADSOFT

Didn't they give you a copy of your contract? You are supposed to get a copy of your car contarct and any other stuff you signed.

</blockquote>

Yeah I got a copy of a Bail Aggrement that says the sales agreement I signed (if approved) is binding. Also it says if I'm denied credit due to any false information on my application, I will be charged $50 a day.

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<blockquote>Originally posted by ADSOFT

The contract that you signed, does it say "SUBJECT TO CREDIT APPROVAL" , they (car dealers) do that in CALI, you can drive the car but SOMETIMES they can't get a bank to approve you. ... In SOME cases the bank will require that you make 3 payments to the CAR DEALER and then they can sell the contract to the bank!!!

... So, does your contract say "SUBJECT TO CREDIT APPROVAL" on it.

Ad's right. This is a pretty well known dealer scam. In this case you have had the car for a week and shown it to your co-workers and neighbors and the dealers thinking is you would accept any change in terms to avoid returning the car. There are a thousand posts on the ripoffreport from people who have been taken by this scam and you need to scrutinize your contract again and be thinking about your out.

Everyone has been ripped off at least once buying a car.

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<blockquote>Originally posted by ADSOFT

Didn't they give you a copy of your contract? You are supposed to get a copy of your car contarct and any other stuff you signed.

</blockquote>

<blockquote>Originally posted by JoeSchmoe

Yeah I got a copy of a Bail Aggrement that says the sales agreement I signed (if approved) is binding. Also it says if I'm denied credit due to any false information on my application, I will be charged $50 a day.

</blockquote>

Well, I would just wait a few days, I hope you have a reciept for your down payment!!!

Didn't they make you sign a contract with terms, interest rates and conditions. In CALI they have to do that, and (I'm not TILA savvy) but I believe lenders are supposed to by FEDRAL law give all the terms of a contract up front!!!!

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<blockquote>Originally posted by ADSOFT

Didn't they give you a copy of your contract? You are supposed to get a copy of your car contarct and any other stuff you signed.

</blockquote>

<blockquote>Originally posted by JoeSchmoe

Yeah I got a copy of a Bail Aggrement that says the sales agreement I signed (if approved) is binding. Also it says if I'm denied credit due to any false information on my application, I will be charged $50 a day.

</blockquote>

<blockquote>Originally posted by ADSOFT

Well, I would just wait a few days, I hope you have a reciept for your down payment!!!

Didn't they make you sign a contract with terms, interest rates and conditions. In CALI they have to do that, and (I'm not TILA savvy) but I believe lenders are supposed to by FEDRAL law give all the terms of a contract up front!!!!

</blockquote>

Yes I have a reciept for my downpayment. They gave me the car before they submitted my info to the bank.

But the finance manager looked over my reports and they told me what my terms would be in the worst case scenario 48 months at $219 a month, no more then that. I had them write that down and I initialed the paper.....but I didn't make a copy of it :(.

So what will they most likely do if I don't get approved?

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<blockquote>Originally posted by ADSOFT

Well did you go with a witness???

</blockquote>

<blockquote>Originally posted by JoeSchmoe

No :( I was by myself.

</blockquote>

<blockquote>Originally posted by ADSOFT

Do you have a signed contract with terms????

</blockquote>

No, because they hadn't sent anything to the bank yet, I just had them write out something saying what terms they were going to get me into and I initialed it....but I didn't get a copy :(

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<blockquote>Originally posted by ADSOFT

Well did you go with a witness???

</blockquote>

<blockquote>Originally posted by JoeSchmoe

No :( I was by myself.

</blockquote>

<blockquote>Originally posted by ADSOFT

Do you have a signed contract with terms????

</blockquote>

<blockquote>Originally posted by JoeSchmoe

No, because they hadn't sent anything to the bank yet, I just had them write out something saying what terms they were going to get me into and I initialed it....but I didn't get a copy :(

</blockquote>

I would wait a few days, if you EVER go back, go with a friend as a witness, that way if they don't provide you with any paperwork or give you "THE BUSINESS" you have a witness for court. Sometimes they are nicer if you go with a WITNESS!!!

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<blockquote>Originally posted by JoeSchmoe

Also it says if I'm denied credit due to any false information on my application, I will be charged $50 a day.

</blockquote>

$50.00 a day! How many days have you had the car 5? Thats $250.00 if they deny you for false info. What is considered false info? Be very careful with this Joe. Hopefully they are legit and don't pull one over on you.

Definately call them ASAP and find out what is going on.

It is normal to be nervous and start getting paranoid. Your mind starts to think of the worst! Try not to, just call and find out what the heck is taking them so long. It shouldn't take this long to approve/deny you.

What type of car dealership are you dealing with? Is it big reputable co. or is it a stricktly used car dealership?

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<blockquote>Originally posted by JoeSchmoe

Also it says if I'm denied credit due to any false information on my application, I will be charged $50 a day.

</blockquote>

<blockquote>Originally posted by capepuffin

$50.00 a day! How many days have you had the car 5? Thats $250.00 if they deny you for false info. What is considered false info? Be very careful with this Joe. Hopefully they are legit and don't pull one over on you.

Definately call them ASAP and find out what is going on.

It is normal to be nervous and start getting paranoid. Your mind starts to think of the worst! Try not to, just call and find out what the heck is taking them so long. It shouldn't take this long to approve/deny you.

What type of car dealership are you dealing with? Is it big reputable co. or is it a stricktly used car dealership?

</blockquote>

Well by false info it defines it as, false employment, residence, or telephone number info. They told me up front that it would take up to 72 hours.....but it's going on 84 hours. It's a Suzuki Dealership, but they have a good selection of used cars.

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So it sounds as if they are reputable, thats good! Your scores are rather low so they might be having a difficult time getting you financed. You said that there are all ready 4 pulls for your CR. You probably will get approved but it might be for a higher interest rate. Don't sweat it! Think positive and call them tomorrow.

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<blockquote>Originally posted by capepuffin

So it sounds as if they are reputable, thats good! Your scores are rather low so they might be having a difficult time getting you financed. You said that there are all ready 4 pulls for your CR. You probably will get approved but it might be for a higher interest rate. Don't sweat it! Think positive and call them tomorrow.

</blockquote>

Thanks I hope so......I've had a string of bad luck with car dealerships, I don't want to add them to the list. But if I get approved at a higher interest rate, that means the terms they quoted me were way off base. Based on the terms they quoted me, I was looking at between 15-16%....is that too low with my scores?

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<blockquote>Originally posted by edubb007

Joe... You're looking at 21% dude! That's a good way to calculate a high risk then anything lower is great!

Good luck...

</blockquote>

Well you tell me:

10k for the car

TTL = 800??

2500 down

219 a month

48 months

does that equal to around 15-16% interest? I was thinking that was rather low myself.

[Edit by JoeSchmoe on [TIME]1056723633[/TIME]]

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As I told you on another board, don't take any s**t from them.

The F & I department (finance and insurance) is playing games with you. I used to own a new car dealership and sold thousands of new cars. In the worse cases, we never took longer than 24 hours to finance unless it was on the weekend. Dealerships use lots of banks, finance companies, and private lenders to get almost anyone financed. It usually only take hours. There is absolutely no reason it is taking this long.

A dealership gets a fixed rate from a bank. Then if they want, and think they can, they may up the rate by a quarter, half, full point-to make some extra money on the deal. And that's ok as they are they to make money, not just provide a service. Believe me, they don't make a lot of money on new cars-it's on the used ones they make money.

Anyway, get pissed and tell them to complete the deal or you are going to report them to the state, the Federal Trade Commission, and their franchise company for fraud and misrepresentation. I am worried they are going to jack up your rate and refuse to take the car back. Oh, you can end up suing them, but it will hurt your credit, not theirs. Hundreds of dealerships do this stuff everyday and get away with it. That's why the industry has a bad reputation.

Good luck, I hope it all works out. Keep us informed. Stuff like this really pisses me off.

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It doesn't sound as if the dealership has done anything wrong so far.

I wouldn't call, they already said it would take 72 hours.... believe me,

they want to sell you the car. Wait until they contact you. Go in and see

what rate and terms they have offered. If they are not to your liking

or acceptable, then walk away from the deal. Simple. Be sure

not to put excessive mileage on the car until all papers have been

signed and the car is yours.

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