After taking delivery, dealership says my loan didn’t get approved

[xtianrecords]

Hey guys 2 weeks ago I bought a 428i xdrive gran coupe. I get a call the loan wasn't approved and that they want me to come back and sign with a different bank. Normally this is a scam to get you to sign a higher interest rate but these guys aren't too shady its a well rep used dealer and the finance manager told me all the numbers will stay the same just going to use a bank instead of a credit union.

My options are to use my own financing or actually turn the car in and get something else. Since I got it I already ordered new intercooler, jb tune, and charge pipe all on its way here in shipping status!!!. There was an Audi s3 that I had my eyes set up but it was 8k more than the bmw and I'm only 26 and I decided it would make more sense to go with the less expensive and tune it up a bit.

What should I do guys? Stay with the 4 series, mod it up a little and be happy? Or go for the s3 and stretch the budget but have the car u really want? I say I won't tune it but how can u not go APR stage 2 lol. Anyway all advice appreciated. Thanks

[Needbmwpartzz]

Get your own financing!

[Run Silent]

18 years here in the auto finance world before moving into my current career. It's a bummer, but what they are saying is accurate and usually not done with any ill will.

When a customer buys a car, the dealership will usually submit your application. If it takes too long for an approval, is late at night, or a weekend when the banks arn't open, we will look at the rate sheets given to us by the banks. Will give loan terms, length, rate, LTV, etc based on credit scores and DI ratio's and we will contract at that.

If the bank gets a bug up their butt the next morning and either declines the loan or adjusts the terms, the dealership has to get the customer back into the store to re-sign.

There will be a piece of paper you signed saying something like the financing is conditional on final underwriting or something like that giving the dealer legal standing.

As those above have said, usually best to procure your own financing going forward. If you are having trouble getting financing approved, then you are on too much car. The banks loan money to rocks in the desert these days.

[Frozen]

This actually legitimately happens. I would try and use it to your advantage. Threaten to give them the car back unless they compensate you somehow with either a lower interest rate with the new bank or some freebies/discounts on the car.

[Run Silent]

Originally Posted by e90m305

This actually legitimately happens. I would try and use it to your advantage. Threaten to give them the car back unless they compensate you somehow with either a lower interest rate with the new bank or some freebies/discounts on the car.

That would be a dick move, bro. If you did that to me at the dealership I used to work at, I would simply take the car back, then bill you for the mileage you ran up on it at 55c a mile. No need to be a jerk. The contracts folks sign all say that the deal is contingent on the bank approving the loan.

[overcoil]

Originally Posted by usshelena725

That would be a dick move, bro. If you did that to me at the dealership I used to work at, I would simply take the car back, then bill you for the mileage you ran up on it at 55c a mile. No need to be a jerk. The contracts folks sign all say that the deal is contingent on the bank approving the loan.

it's one thing if that is disclosed and maybe annotated before signing contract.
However, if the purchaser is under the impression the deal is final - and the seller very well may leave that perception so the buyer doesn't delay taking the car till confirmation - then there is no etiquette in not using the situation to your benefit.

all depends what the buyer was told and not what might be stated in the text of a contract -

[kivyee]

I'm surprised the dealers let the customers take the car before financing is approved...Seems like a risky move.

[F80zcp]

Originally Posted by usshelena725

That would be a dick move, bro. If you did that to me at the dealership I used to work at, I would simply take the car back, then bill you for the mileage you ran up on it at 55c a mile. No need to be a jerk. The contracts folks sign all say that the deal is contingent on the bank approving the loan.

And I'd give you the car back and wouldn't pay your 55c per mile charge.

[TheWatchGuy]

Originally Posted by ScottSinger

it's one thing if that is disclosed and maybe annotated before signing contract.
However, if the purchaser is under the impression the deal is final - and the seller very well may leave that perception so the buyer doesn't delay taking the car till confirmation - then there is no etiquette in not using the situation to your benefit.

all depends what the buyer was told and not what might be stated in the text of a contract -

this is why you sign all that paperwork stating you have read and understand what you are signing. its not the dealerships responsibility to make you actually read it.

Originally Posted by F80zcp

And I'd give you the car back and wouldn't pay your 55c per mile charge.

and then you would get to enjoy collections if they wanted to be a dick back.

this happens more often than you would think, which is why the dealerships have you sign the contract stating this might happen and what you do if it does.

OP, go in, make sure you read the new paperwork carefully and understand and ask questions if you dont. And if the terms are worse for you, secure your own financing or find a car in a price range that you can get decent terms on. Definitely dont get a higher priced car if you cant get a loan approved at the current price point.

[RickFLM4]

Get your own financing if you can do better or go sign the paperwork if everything stays the same. Not complicated.

[xtianrecords]

i was going to ask about negotiating something to compensate. i submited the purchase agreement to my own credit union. well see what they say. i am DEF not buying too much car i have the full amount in cash it was more a logistic issue on their end with my student visa not being approved.

what are my options if financing falls through. can i get my down payment back ?

[RickFLM4]

Compensate for what? Going back in to sign new paperwork? :

[StuP]

Originally Posted by xtianrecords

i was going to ask about negotiating something to compensate. i submited the purchase agreement to my own credit union. well see what they say. i am DEF not buying too much car i have the full amount in cash it was more a logistic issue on their end with my student visa not being approved.

what are my options if financing falls through. can i get my down payment back ?

You say you have the full amount in cash, so why not just buy it ?

[overcoil]

Originally Posted by xtianrecords

i was going to ask about negotiating something to compensate. i submited the purchase agreement to my own credit union. well see what they say. i am DEF not buying too much car i have the full amount in cash it was more a logistic issue on their end with my student visa not being approved.

what are my options if financing falls through. can i get my down payment back ?

https://www.carbuyingtips.com/top-10-scams/scam1.htm


https://www.consumer.ftc.gov/blog/20...o-yo-financing

Have them fax u the new paper work don’t go back to the dealer.

[someguywithanm3]

Originally Posted by StuP

You say you have the full amount in cash, so why not just buy it ?

Maybe he wants to invest the money or keep it around just in case. My buddy asked me why I don't pay off my latest purchase and I told him I'd rather have a nice sized savings than pay off a depreciating asset. I could always sell the vehicle if something bad happened.

[gatorfast]

Originally Posted by RickFLM4

Compensate for what? Going back in to sign new paperwork? :

lol this is par for the course on this board. One minor things happens at a dealership and everyone chimes in that you should demand the moon and stars in return.

[Grip Addict]

No offense, but it sounds like it is legit and it is due to your credit score/rating.

[BigHunk]

It's a common tactics at dealership financing,they claim your credit is bad to scare you,so when they hit you with high interest rate, at the end you're happy your financing is even approved.

[StuP]

Generally it's best to have your financing in place before going to a dealer. If they can offer a better deal you can always take it.

[xtianrecords]

Originally Posted by StuP

Generally it's best to have your financing in place before going to a dealer. If they can offer a better deal you can always take it.

I had capital one pre approval at 4.9% and the dealer had a credit union at 4.3 % so I went with them. Waited 3 hours since their credit union process was so slow and 2 weeks later they are calling me up asking to come back... I'm not an entry level worker with bad credit lol when a mortgage company ran it 6 months earlier when I was trying to get into real estate it was well over 700

[Mardio]

Originally Posted by BigHunk

It's a common tactics at dealership financing,they claim your credit is bad to scare you,so when they hit you with high interest rate, at the end you're happy your financing is even approved.

I would think most people would already know their credit score before making such a huge purchase. Even if they didn't the dealership would have to show you your score so I'm not sure how they could "claim" you have bad credit.

[RickFLM4]

Back on post 11, OP said his student visa was not approved (presumably referring to legal permission to be in the country, not a credit card), so if that’s the case it wouldn’t be a surprise if a credit union or bank declined. In any event, it sounds like OP can either go sign the paperwork with matching terms, find alternative credit, pay in cash, or deal with the fallout of having the car repossessed. Choices available really don’t seem that complicated to me.