CarolinaBlueEyes Posted January 15, 2007 Report Share Posted January 15, 2007 bought a new car last week.. had credit issues in the past.. but not in the last four years.. we wrangled the interest rate..i am self employed and my accountant does my schedule C based on the business... not personal.The underwriter told me (he called to ask a question).. that as long as my line 12 of the 1040 and line 31 of the C (I may have that backwards) matched I would be fine (he was with cap one).. he asked for the front page of the 1040 and the C) for the last two years.. If they request additional tax documentation (would they?) I am not going to provide 80 pages of my tax return to some stranger.. sorry but that is NOT information they need.... it would only confuse them more (when I bought my house I had to find a lender who used to be a CPA, HE got it.. the average underwriter turned it down because they didnt understand what they were seeing)...this return will make NO sense. unless he is just looking at those two numbers...if he starts going through it (do they?) it is confusing.. I have had accountants that didnt get it.. and most CPA's do and so does the IRS who is the one that really counts.. lolthey didnt care about my P&L'sAnyway I thought everything was fine.. now I find out after I have the car that I had to sign a paper saying I needed to return the car if my financing didnt go through.. ??? I assumed it did..I asked about this. he said.. should be fine. if it were not we wouldnt let you drive a 36K vehicle off our lot.. okay he has a point.. I did check the paper work and there were NO fees if this happened and I also asked.. they stipulation is they return the trade in and down payment)... anyway.. can you tell me what are the chances of this happening.. I have NEVER seen this before until now... while I was in the office a lender called on another customer.. she had her car 45 days and they were still asking for documents 45 days???? Either I have the car or I dont.. any ideas on this would be great... again thanks! Link to comment Share on other sites More sharing options...
willingtocope Posted January 15, 2007 Report Share Posted January 15, 2007 Dealers do work scams sometimes (geesh, can you beleive that?) with less than "well qualified borrowers". They'll take your trade, let you sign and drive away, and then call in a day or two and say the financing didn't go through, and they need more documentation. They'll then work another deal at a higher rate or longer terms. And, since the trade is "no longer on the lot", you're kinda stuck taking their offer. (There is another post about that around here somewhere...it at least a few months old).I saw in your other post on this subject that it looks like your dealer may actually have lowered your payments...be sure and check the terms and other fine print.If my swiss cheese memory works correctly, I beleive this was Ford dealers in OH or PA...maybe they got caught and are trying to cover up. Link to comment Share on other sites More sharing options...
CarolinaBlueEyes Posted January 15, 2007 Author Report Share Posted January 15, 2007 yep he lowered it.. which is why I am confused Link to comment Share on other sites More sharing options...
willingtocope Posted January 15, 2007 Report Share Posted January 15, 2007 The underwriter told me (he called to ask a question).. that as long as my line 12 of the 1040 and line 31 of the C (I may have that backwards) matched I would be fine (he was with cap one).. he asked for the front page of the 1040 and the C) for the last two years.. When we were self employed with our own C Corp, that's what the finance people would ask from us...it amounts to proof of income (since they can't check with an employer).When you get the papers tommorrow...get out your magnifing class. Something sure doesn't smell right. If the payment goes down, I'm guessing its for a longer term...or maybe even they've discovered that the car wasn't actually new, or was dropped off the truck or something. Link to comment Share on other sites More sharing options...
CarolinaBlueEyes Posted January 15, 2007 Author Report Share Posted January 15, 2007 did they come back and ask you for additional paperwork. I am told this happens.. geez I hope notas far as new its their brand of car and the body type is a 2007 so that I am not worried about... dropped of the truck ???,,LOL .. good something else for me to think about oh believe me I will be checking everything and its not a ford but toyota Link to comment Share on other sites More sharing options...
kevin3344 Posted January 15, 2007 Report Share Posted January 15, 2007 (edited) Almost the identical thing happened to my sister last year. She traded her car in for a new one and after she had it for the weekend and they told her the financing was not secured. She either had to come in with an additional $1,000 down or bring back the car. She was devastated, since she got used to the car (of course!) and she didn't have the additional money for the down payment. She got her old trade back and finally got a new car this year. Guess what? She didn't drop off her trade and drive that new car off the lot until she KNEW the loan was approved and it the car was hers! Actually she got her financing ahead of time from her credit union, that way she knew the money was there and there would be no mix ups.Be careful!________Mmi alternative medication dispensary address 8924 reseda boulevard Edited September 9, 2011 by kevin3344 Link to comment Share on other sites More sharing options...
admin Posted January 15, 2007 Report Share Posted January 15, 2007 It's always a good idea to have your financing lined up before you step foot on the lot. And a credit union is the perfect place to go. If you wind up with a better deal at the dealer, you can always take - but then you will have an apples-to-apples comparison. Also, it's really the best way to go to have the CAR and PRICE lined up before you make a deal. This is easily done through the internet, then you don't have to deal with the sales people and their pressure tactics. Link to comment Share on other sites More sharing options...
CarolinaBlueEyes Posted January 15, 2007 Author Report Share Posted January 15, 2007 It's always a good idea to have your financing lined up before you step foot on the lot. And a credit union is the perfect place to go. If you wind up with a better deal at the dealer, you can always take - but then you will have an apples-to-apples comparison. Also, it's really the best way to go to have the CAR and PRICE lined up before you make a deal. This is easily done through the internet, then you don't have to deal with the sales people and their pressure tactics. I did all that and was told everything was approved...and all was fine.. and then this..... I had my pricing, deal , trade in.. etc lined up... something seems off Link to comment Share on other sites More sharing options...
CarolinaBlueEyes Posted January 15, 2007 Author Report Share Posted January 15, 2007 okay.. finally tracked down the finance guy a few minutes ago.. he told me that this change was not unusual... he said said when he met with me things had changed from the original deal.. I put more money down and we negotiated to lower the price of the car.. etc.As far as credit unions.. they are not really big here.. I think the closest one is over an hour away... but I was told everything was in place before I even picked out a car.. we worked on it for two daysHe said that when he presents it to the bank it fell into a different tier since both those factors lowered my interest rate and they wouldnt take it at the higher rate..I talked to a friend in DC who has worked for a dealership for 9 years.. she said this is NOT uncommon and happens quite a bit..still feels odd. .which is why I buy a car every 10 years Link to comment Share on other sites More sharing options...
lostnjax Posted January 16, 2007 Report Share Posted January 16, 2007 O.K. I don't post that much but I had to come out on this one. It is not uncommon at all for this to happen. It sounds like what happened is based on the information the dealer had when you were purchasing the car it looked like it was a deal through one of their lenders (most dealers have multiple lenders). Rather than you sitting in the showroom for a couple of days while the finance guy tries to get you approved he did what is called a spot delivery (that's why you have the form saying you'll bring the car back if things fall through). Now what has happened is that the lender he origionally submitted you to possibly capped him or outright turned it down thus causing your terms (int rate and pmt) to change because the other lender he is shooting for has different terms and/or guidelines. 9 out of 10 times you will not be financing this vehicle through FMCC. Don't believe me.....call the dealer and ask who is the financing through or better yet pull your CR and you'll notice all the inquirues from multiple banks. If he can't give you a straight forward answer your deal is not done yet. You probably will also have to return to the dealer to recontract as well if he does get the deal done. As far as docs go, unless they are running you through HFC or AmeriCredit they won't need the full return. Your Schedule C should be o.k. for most other lenders.Hope this helps a little Link to comment Share on other sites More sharing options...
CarolinaBlueEyes Posted January 17, 2007 Author Report Share Posted January 17, 2007 Thanks for the insight .. however my lender never changed.. it was cap one both times.. before and after the new paperwork.. you are correct.. things did change.. I put more down and renegotiated the price of the car quite a bit... so its like you stated.. it put it in a different catagory.. i knew he submitted it to several lenders before I got there... as far as my C I submitted page one.. its what they asked for.. i am not submitting the other 80 pages.. its frankly none of their business, since this pertains to the business income.. the guy at cap one told me that as long as my 1040 12 line and my line 31 (or vice versa) on my C matched it was all good... lets hope so.I did meet him to resign the new deal on thursday.. the ONLY thing that changed was the interest and the payment of course..... again, same lender...I guess now we just wait and see Thanks! Link to comment Share on other sites More sharing options...
Recommended Posts