Post # 16
@Aure: I believe they can legally take the car back if financing falls through…
A girl I worked with bought a used BMW last year and almost two weeks later was notified that the financing fell through. While she was “pre-approved” they revoked the loan after reviewing all of her financial details. She had to return the car and trade it in for something with smaller monthly payments to meet their financing restrictions.
Post # 17
They will usually run it through several banks until they find one that will finance. The ones that deny you will get letters from both the dealer and the financial company so you can use those letters to pull up copies of your credit report. It is the law that if they pull your credit and deny they have to send out how you can pull those reports for free. There should be instuctions on the letters on how to pull your reports.
Post # 18
@nickels- DH has a credit score over 800 so we weren’t worried about financing, but the dealership offered us a good deal. But if it falls through we will go to another bank, but I didn’t know that you could get denied after you were approved.
@treejewel19- Oh my that would be terrible. So it’s like the dealership tricked her into buying from them and then she was stuck with something she didn’t want in the first place.
@tksjewelry- I am hoping that is all that it is.
Post # 19
I know my situation is different, but it had to do w/ financing. When I bought my car, I was quoted 1.5% APR (this was years ago lol). I signed on the dotted line and went on my merry way. Several weeks later, I got a call saying there was an error an in all actuality, the bank approved me for 2.5% and they were sending me a new contract to sign. I basically told them to shove it. I signed for 1.5%, so they could eat the costs of the 1%…never heard from then again.
Post # 20
@roxy821: Thats a really good score, he shouldn’t be turned down by any lenders with that! Just be careful if they they want to resubmit everything to find you guys new financing. If its falls out of a certain period of time your credit scores will take ANOTHER hit. They give you a certain amount of time (I’m not sure how long, but I think 2 weeks) where you can have your credit pulled (hard pull) by lenders without being penalized (this is so consumers can shop for the best rates). But if a certain amount of times passes and you get those hard pulls again by other financial instituions your score will go down because they see you as asking for even more credit. And the dealerships can bring your score down quite a bit (they show up as you seeking credit from so many banks) I’ve been told anywhere form 10-20 points by the loan officer. When the credit union pulled mine it took off 1 point, but that is because it was just 1 pull. Just figured I would mention it ( I never knew that when I bought my first car, just when I bought my recent one 🙂
Post # 21
They dont look at just the score, they also look at credit history and other factors because i have a high credit score but not a long credit history so we had to finance in my husband’s name.
Post # 22
@nickels- Thanks for all of the financing tips, it’s very helpful. We both have really good credit, own a home and just bought our 2nd new car so I hoping we should be good for a while and let our credit scores work their way up in case they took a hit from the inquiries.
Post # 23
I’ve had something similar happen. On the first car I bought on my own, I did the sign and drive thing. The financing didn’t happen the way they wanted, so they had to actually give me MORE for my trade in to get the financing to work. They ate the difference because my car was NOT worth what they ended giving me. 😀
Unless you falsified information on loan documents, they can’t take the car back. They have to arrange alternate financing.
Post # 24
UPDATE: I just reread the letter. The one from the bank we didn’t go with I’m not worried about but there is one from the dealership itself? The one from the dealership is basically saying that the loan we applied for through them has been denied, and they left at 3 today so we can’t call until tomorrow.
Post # 25
Your credit score doesn’t “take a hit” with multiple inquiries on the same type of purchase within a 30 day window. I’m not sure why people believe that, it is common knowledge that when shopping for financing on something that your credit will be run a few times, that counts as 1 “hit” as you are all referring to it.
And this actually happens all the time to people. Google it. That is why it is highly recommended that you secure your own financing or read the contract in detail when you sign it. Likely they reviewed your credit history and found a reason to deny you, but either way you can go pull your own credit report, or likely more helpful would be your FICO score for free (credit) and $20 (FICO). This way you will know what they are seeing. Also, the letter should have stated why you were denied credit, but if it didn’t you can simply pick up the phone and ask them. They will tell you, they aren’t hiding anything. The money is theirs to lend to whomever they see fit.
And they can absolutely repossess the car if the financing falls through. Again it happens all of the time.
Post # 26
So I just reviewed a shocking letter saying I was denied for financing my new car.. Basically everything that you said happened including trading ur car in, happened to me. I’m hoping its from a different bank or one they applied with. I’m so nervous now and cannot sleep. What ended up hapowning with ypir situation!? Best regards, kenzie
Post # 27
I purchase a new car and still haven’t received any paperwork but I did get 3-different denied letters and my monthly payment is due I have been trying to call the finance manager not answering and no return calls what should I do??
Post # 28
Yes, they can do that. It’s rare, but it does happen. That is dreadful. I’m so sorry you’re going through this.
You may want to try your bank or credit union for replacement financing. Do contact the lender as well. Keep in mind, everyone wants this sale to go through. It’s not hopeless.