Finally got a new car

[jason0618]

I had a similar situation happen to me, where I went to Performance Honda in Fairfield, with this same type thing. I'd had several loans with Honda in the past, and the sales guy assured me it wouldn't be a problem, once the bk was discharged. So after discharge, I went back and made a deal on an '08 Honda Civic. $500 down and 14.75% for 60 months. Figured I'd keep it for 2 years, pay extra and be in a decent position... They too, gave me the "we don't have a definite, but it won't be a problem", so I took their word. (I'd also bought 2 of my previous 3 Honda's from this dealership).
5 days later, they called me and told me I needed to bring it back because it wasn't approved, and they didn't want to shotgun me to other lenders. I asked the reason, and they said they couldn't get verification of my employment.... I offered paystubs, letter on company letterhead, contact info, etc. they said they couldn't do anything, and that I needed to return the car, and pay the associated "fees", which coincidentally equalled the $500 down payment, I'd made plus mileage. I told them I'd return the car but that if they ever wanted my business again, they'd have my original check waiting to hand to me when I returned the car. The finance manager got kinda snippy at that point, acting like I'm BK, they wouldn't want my business... I let him know I'd been there several times, and that he may want to check those records. Anyway, even with a bankruptcy, by resisting their stupid rules, and using whatever leverage you have, I was able to return the car and get my check back, as well as getting my old car returned to me with a full tank of gas.

[pkmj]

That is Spot Delivery. You should never sign anything and take the car off the lot with out confirming it has been financed. Don't "go home for the weekend".

http://www.lemonlaw.com/spotdelivery.html

[NOMOREBADCREDIT]

Thanks everyone for youre input. i dont know if i will ever Finance a car . my credit score went up 2pts this whole ordeal is weird. when i had 560 credit score i had no problems getting a car finance if i wanted one. thanks again

[NOMOREBADCREDIT]

And lets not forget, given the short term of most car loans (relatively speaking), refinancing a car usually costs you more money than simply finishing out the term of the bad loan (there are some old posts on this subject where I do the math). The only time refinancing works is if they do not extend the "term" of the new note beyond the end date of the note being refinanced (which almost never happens), otherwise, you are practically buying the car twice and spending more money.

I applaud your choice on make and model for a "new" car, although generally I recommend against buying new cars (because as has already been pointed out, unless you buy down the depreciation with a down payment, you will be upside down as soon as you drive off the lot), the 08 Hyundai Elantra is a very economical, efficient car.

But I too, question the judgment on making a lousy deal now in the "hope" of making a better one later. Never pin your financial future on something that is out of your control...after all, it is that kind of thinking that has led to record foreclosures.

thanks for the good words.

[HHM]

And lets not forget, given the short term of most car loans (relatively speaking), refinancing a car usually costs you more money than simply finishing out the term of the bad loan (there are some old posts on this subject where I do the math). The only time refinancing works is if they do not extend the "term" of the new note beyond the end date of the note being refinanced (which almost never happens), otherwise, you are practically buying the car twice and spending more money.

I applaud your choice on make and model for a "new" car, although generally I recommend against buying new cars (because as has already been pointed out, unless you buy down the depreciation with a down payment, you will be upside down as soon as you drive off the lot), the 08 Hyundai Elantra is a very economical, efficient car.

But I too, question the judgment on making a lousy deal now in the "hope" of making a better one later. Never pin your financial future on something that is out of your control...after all, it is that kind of thinking that has led to record foreclosures.

[NOMOREBADCREDIT]

Every NEW car, no matter what brand it is or how cheap you talk them down it upside down the minute you drive away with it. Once its considered used the value drops signifigantly. What state are you in? My credit rating is in the low to mid 600's and we had no trouble getting a used car financed. Not a good interest rate but good price. Good Luck, Dragonnfly

VIRGINIA

[Flamingo]

As you know I have been following your thread and really feel bad that you are having such issues. I know you want a car badly but be sure you do your homework as to any situation before you accept it. There is just too much scam stuff out there and some sleazy car dealers want to move those cars no matter what they have to do. I hope things work out for you.

[NOMOREBADCREDIT]

I return the car to the dealership the sales manager was mad. then they tell me i got approved and they still are inq on my report when i told them to stop. i call all the banks and still have not got approved. the dealer lying just for i can keep the for the car and they keep charging me.they have the car back and canelled the ins.

[dragonnfly]

Every NEW car, no matter what brand it is or how cheap you talk them down it upside down the minute you drive away with it. Once its considered used the value drops signifigantly. What state are you in? My credit rating is in the low to mid 600's and we had no trouble getting a used car financed. Not a good interest rate but good price. Good Luck, Dragonnfly

[NOMOREBADCREDIT]

I don't know. Read all the fine print involved. I believe it all depends on whatever lender, if any, they can get to approve you. If the lender wants a higher rate, I believe it can ge changed. If you don't agree to that, you will have to return the car and possibly pay fees/charges for the time you had it.

Best of luck.

thanks

[Flamingo]

they cannot charge me more the the contract states?

I don't know. Read all the fine print involved. I believe it all depends on whatever lender, if any, they can get to approve you. If the lender wants a higher rate, I believe it can ge changed. If you don't agree to that, you will have to return the car and possibly pay fees/charges for the time you had it.

Best of luck.

[NOMOREBADCREDIT]

Read the paperwork they gave you carefully; all the fine print, etc. There was a poster on here with a similar situatoin a few months back. If you research Wachovia on here, you might find the thread, or it may be under buying a car after BK or something similar. He ended up getting sued by the dealership if I remember the situation correctly. Your agreement probably states that you will keep the vehicle until they obtain financing for you. If they cannot obtain financing, you will have to return the vehicle and there are other probable related clauses as to fees you may have to pay for having the vehicle during that "take home" time. That fine print can get you if you don't read it prior to leaving that dealership lot with a vehicle.

The reason for all the inquiries is that they are having a hard time getting a yes so they keep trying high risk lenders. You may be lucky and get one but probably at a much higher rate than what they told you and added costs and fees.

We all learn the hard way with a lot of things...you just learned about a possible dealership scam. Hope things work out for you on this one...best of luck!

they cannot charge me more then the contract states? but it does have that if they cannot get financing i will have to pay fees i just want to give this car back now.

[Flamingo]

i already have contract but the dealer cannot get funding for the deal and they are doing lot of inqs on my report. i offered to give them the car back but the dealer will not take it back. i did the math on this car and i will be upside down on it if they find funding. i just want out of it .

Read the paperwork they gave you carefully; all the fine print, etc. There was a poster on here with a similar situatoin a few months back. If you research Wachovia on here, you might find the thread, or it may be under buying a car after BK or something similar. He ended up getting sued by the dealership if I remember the situation correctly. Your agreement probably states that you will keep the vehicle until they obtain financing for you. If they cannot obtain financing, you will have to return the vehicle and there are other probable related clauses as to fees you may have to pay for having the vehicle during that "take home" time. That fine print can get you if you don't read it prior to leaving that dealership lot with a vehicle.

The reason for all the inquiries is that they are having a hard time getting a yes so they keep trying high risk lenders. You may be lucky and get one but probably at a much higher rate than what they told you and added costs and fees.

We all learn the hard way with a lot of things...you just learned about a possible dealership scam. Hope things work out for you on this one...best of luck!

[NOMOREBADCREDIT]

i already have contract but the dealer cannot get funding for the deal and they are doing lot of inqs on my report. i offered to give them the car back but the dealer will not take it back. i did the math on this car and i will be upside down on it if they find funding. i just want out of it .

[Flamingo]

I responded to you on your other posting about your situation. Your BK and all your hard inquiries on your numerous tries to get a vehicle has and still is working against you. If you are not careful, you are going to end up not being able to afford this present vehicle if ithey actually do come back with financing (expect a high rate and possibly other charges). There was another poster in here who obtained a vehicle the same way but they could not get financing and he had to return the vehicle to the dealership and there were all sorts of issues concerning that as to his credit and some lender (Wachovia I believe). Even if you keep this vehicle with the intention to refinance, there is no guarantee that any lender will refinance you.

While I know you probably really need a vehicle, you could be really taken on this deal by the dealership since they can make a lot of money off the deal and need to push their inventory and sell cars.

I know it's probably hard or impossible for you to think about this, but you may have to save up enough cash to get some sort of vehicle for a while until your credit gets better after all these inquiry hits and you ar further past your discharge date by several years. Those inquiries are on your record for two years now (used to be one). Do you have any family that can help you out in any way during this time as to getting some cash together?