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Needed: Advice on Getting Out of a New Car Loan


#1 MorPhiend   CAGiversary! CAGiversary!   3790 Posts   Joined 18.6 Years Ago  

Posted 11 May 2011 - 11:49 PM

So I get a call from my cousin last week saying for me to come check out some cars at a tent sale they have going on. Turns out he just started working as a sales guy. Cool. My car got totaled by some idiot a few weeks ago. I need a car, why not look? (I work at home, so I was in no rush for a replacement.) He says the sale is going through Sunday. Since it is Friday I figure I can check out what they have and sleep on it.

The kid shows me some cars. I don't really like what they have going on. I try to get into a couple of models, but just wasn't digging them. I tell him thanks and that I'll let him know. He tells me to wait because he'll get fired if he doesn't let someone else talk to me before I leave. I'm like, "Whatever". He walks away and a minute later his manager comes over and starts in on some high pressure crap. I don't want to cause my cousin problems at his new job, so I try to be nice to the douche. I do tell him flat out that I'm not buying tonight, that I never buy anything on the spot. Well, I'm not sure what happened, but somehow he made me feel guilty or something because I drove away in one of their cars.

I felt I was stuck with the car unless something major went out on it, so I haven't looked into getting out of it. I'm extremely unhappy with it. I never would have purchased this car on my own. The payments are very high (the loan is only like 3 years). I can make the payments, but life won't be fun doing so. In fact, life will be pretty miserable considering some of the other high expenses I have right now (some pretty good coverage health insurance w/ an HSA and student loans being a big part of it).

But it turns out that my loan hasn't been finalized, it seems. Is this a way out without costing me anything and without hurting my credit? So I have been out of town for a few days and I come home to a message of the dealership's loan guy saying that he's been trying to get a hold of me. Apparently he lost some of the papers I gave him (proof of income and personal references). He says he needs them faxed ASAP or else my loan approval that is on hold could be cancelled!

I was ready to bend over and take it up the rear from them, but is this a way out? If the loan is being held up, can they hit me financially or credit-wise for anything if I just turn the car back in and say I want out? I did pay $1000 down, which I don't know if I could get back (if they refuse, I could always try and do a charge back). But that's a lot better than what I thought I would eventually lose if I traded the car in at some point.

Anyway, if anyone knows anything about this stuff, I'd love some help! Thanks. :)




tl;dr
I was an idiot. Bought a new car I didn't want. Realized I was hosed with no way out. But today I got a message from the finance dude at the dealership saying that they lost the proof of income and references I gave them and if I don't get new copies to them ASAP, the loan approval that is currently on hold will be cancelled. If I don't have a loan, does that mean they don't have a sale and I can just turn in the car without a financial or credit hit? Thanks. :)

#2 pimpinc333   CAGiversary! CAGiversary!   11381 Posts   Joined 18.6 Years Ago  

Posted 11 May 2011 - 11:58 PM

That Manager must have been a really good salesman....

#3 JJSP   Hank The Pigeon CAGiversary!   10230 Posts   Joined 15.8 Years Ago  

Posted 12 May 2011 - 12:10 AM

I believe you've got (at least in CA) a three day grace period. Not sure about your local area though.

#4 jbuck138   Wario for President! CAGiversary!   718 Posts   Joined 17.0 Years Ago  

jbuck138

Posted 12 May 2011 - 12:11 AM

I have no idea, but good luck. I would love to hear what happens and I hope you get out of the loan.

#5 QiG   I'm all out of gum.. CAGiversary!   2866 Posts   Joined 15.5 Years Ago  

Posted 12 May 2011 - 12:20 AM

I don't have anything relevant to add, but...

What kind of car?

#6 silentevil   Most evil man ever!! CAGiversary!   580 Posts   Joined 15.4 Years Ago  

silentevil

Posted 12 May 2011 - 12:41 AM

Makes no sense. Why would they allow you to leave without approving loan application? If they didn't run your loan application how did they know how much credit to give you? They take 20 minutes to process. Call the dealership don't have them call you and ask to speak with a loan manager. Verify the loan hasn't went through. Read ALL of the paper work and do a credit check. If you recieved a loan it will show up on your credit report.

If you signed an agreement to purchase the car you're pretty much stuck. If they are nice they will keep your 1000 dollars and take the car. worst case is they repo the car auction it off and you're stuck paying the difference and youre paying for a car you don't have.

#7 MorPhiend   CAGiversary! CAGiversary!   3790 Posts   Joined 18.6 Years Ago  

Posted 12 May 2011 - 01:00 AM

I don't have anything relevant to add, but...

What kind of car?


It's an '11 Chevy Cruze.

Makes no sense. Why would they allow you to leave without approving loan application? If they didn't run your loan application how did they know how much credit to give you? They take 20 minutes to process. Call the dealership don't have them call you and ask to speak with a loan manager. Verify the loan hasn't went through. Read ALL of the paper work and do a credit check. If you recieved a loan it will show up on your credit report.

If you signed an agreement to purchase the car you're pretty much stuck. If they are nice they will keep your 1000 dollars and take the car. worst case is they repo the car auction it off and you're stuck paying the difference and youre paying for a car you don't have.


That's what I thought. I was like, I don't have proof of income, proof of residence, etc. on me. They're like, that's okay. we'll get this started, you can drive home tonight and we'll get the info from you later.

This is my first time buying a car (besides the used '97 Accord that got totaled). I told my sister (who has lots of experience with car salesmen) what they did and she couldn't believe it either.

I'll have to go through the paperwork tonight. But I would assume that the agreement was to pay off a loan they were going to give me, not the car. The bank is doing the financing, they basically sold the car to the bank. If the bank cancels the loan, there isn't anything to pay off (this is what I'm hoping for).

#8 Invicta 61   Gabagool, Provalone and vinegar peppers CAGiversary!   2239 Posts   Joined 12.0 Years Ago  

Posted 12 May 2011 - 02:12 AM

Perhaps if they have not finalized the loan you could talk them into renegotiating the terms. You might also want to talk to your cousin just in case he could give you some pointers on what to do.

#9 dmaul1114   Banned Banned   24688 Posts   Joined 17.5 Years Ago  

dmaul1114

Posted 12 May 2011 - 02:21 AM

He said his cousin just started there, so I doubt he'd be of much help.

#10 zionoverfire   C10Cl12 CAGiversary!   18242 Posts   Joined 18.1 Years Ago  

zionoverfire

Posted 12 May 2011 - 02:23 AM

Wow your cousin totally screwed you.

I'd suggest calling them up and seeing if you can get it changed from a sale to a lease, I'm not sure if it's possible but if so you'd only have to make payments on a car you don't want for a couple years this way. Since you already signed for and received the car they've sold it to you. If the loan doesn't go through either they'll stick you with a much higher interest loan that you've probably agreed to in the fine print if the bank loan falls through or they'll repo the car then resell it probably at auction and bill you for the difference.

#11 Dead of Knight  

Dead of Knight

Posted 12 May 2011 - 02:58 AM

I have no advice except that, congratulations, your new car has been recalled!
http://www-odi.nhtsa...true&refurl=rss

#12 Soodmeg  

Posted 12 May 2011 - 03:06 AM

Isnt it law that the dealer has to have all the paperwork signed and reported before you leave? If that is the case why cant you play this against them and talk to someone above the manager or someone at the bank and say you are unhappy that they lost your paperwork and no longer trust them?

Loosing your paperwork seems like a legit complaint that can get you out of this.

#13 vrblknch   CAGiversary! CAGiversary!   188 Posts   Joined 15.0 Years Ago  

vrblknch

Posted 12 May 2011 - 03:21 AM

Fronting cars is not a new tactic. It happens all the time! Good luck undoing it.

#14 Viva Las Vegas   CAGiversary! CAGiversary!   1818 Posts   Joined 17.3 Years Ago  

Viva Las Vegas

Posted 12 May 2011 - 04:28 AM

I wish you had this on video. I can't for the life of me understand how you accidentally buy a car you don't want.

#15 soulvengeance   Beating dead horses CAGiversary!   4229 Posts   Joined 18.8 Years Ago  

soulvengeance

Posted 12 May 2011 - 05:00 AM

They probably just sent you out on a dealer tag until they can get you financed. If you haven't signed the actual loan paperwork, you don't own the car yet, so hurry up and take it back. The idea of sending you out in the car before you get the loan is so you fall in love with it so you won't want to take it back.

#16 BillyBob29   CAGiversary! CAGiversary!   950 Posts   Joined 18.3 Years Ago  

BillyBob29

Posted 12 May 2011 - 05:13 AM

It is actually very common for dealerships to let people leave with a car even though what they basically have signed for is a good faith loan.

The dealership takes all the info, submits for pre-approval and if the pre-approval comes back they let you take the car even though the final approval by the bank won't come for a day or two later after everything has been verified.

It sounds like this is what happened to you. You signed the agreement with terms the dealership was able to pre-approve you for. You left with the car then the dealership submitted the formal loan for final approval and the bank needs additional verification.

Most dealer contracts have some sort of clause in them stating something along the lines of if the bank would refuse to approve the final contract then you will return the car to the dealer and pay them $xx.xx per mile the car has been driven.

I would read through the documents you have and see if there is anything like that in there. If there is then there is the possibilty that you could refuse to provide the final paperwork the bank needs to approve the loan and just return the car and pay what ever mileage associated fees there are.

I don't believe this would reflect negatively on your credit outside of the typical credit inquiry that would show up when the dealer pulled your credit.

#17 MorPhiend   CAGiversary! CAGiversary!   3790 Posts   Joined 18.6 Years Ago  

Posted 12 May 2011 - 05:36 AM

He said his cousin just started there, so I doubt he'd be of much help.


This.

Wow your cousin totally screwed you.

I'd suggest calling them up and seeing if you can get it changed from a sale to a lease, I'm not sure if it's possible but if so you'd only have to make payments on a car you don't want for a couple years this way. Since you already signed for and received the car they've sold it to you. If the loan doesn't go through either they'll stick you with a much higher interest loan that you've probably agreed to in the fine print if the bank loan falls through or they'll repo the car then resell it probably at auction and bill you for the difference.


He's just young and I should have known better. Like I said, I'm an idiot for doing it...

And selling it off for nothing and sticking me with the remainder is the only fear keeping me from bringing it back in tomorrow.

I have no advice except that, congratulations, your new car has been recalled!
http://www-odi.nhtsa...true&refurl=rss


haha, they had one standard transmission available. Mine. After driving a stick for the first time AFTER I bought my manual Honda a few years back, that is one thing I know I DO want in any vehicle I ever buy from here on out.

I wish you had this on video. I can't for the life of me understand how you accidentally buy a car you don't want.


Because I'm an idiot. You don't know how stupid I feel. But I'd rather feel stupid and hopefully get the advice I need than take it up the rear because I didn't ask anybody for help.

It is actually very common for dealerships to let people leave with a car even though what they basically have signed for is a good faith loan.

The dealership takes all the info, submits for pre-approval and if the pre-approval comes back they let you take the car even though the final approval by the bank won't come for a day or two later after everything has been verified.

It sounds like this is what happened to you. You signed the agreement with terms the dealership was able to pre-approve you for. You left with the car then the dealership submitted the formal loan for final approval and the bank needs additional verification.

Most dealer contracts have some sort of clause in them stating something along the lines of if the bank would refuse to approve the final contract then you will return the car to the dealer and pay them $xx.xx per mile the car has been driven.

I would read through the documents you have and see if there is anything like that in there. If there is then there is the possibilty that you could refuse to provide the final paperwork the bank needs to approve the loan and just return the car and pay what ever mileage associated fees there are.

I don't believe this would reflect negatively on your credit outside of the typical credit inquiry that would show up when the dealer pulled your credit.


That's a great idea. I'll have to read through every page during any downtime in the morning at work. Hopefully that's the case.

#18 crushtopher   1 to 1.618 CAGiversary!   485 Posts   Joined 15.7 Years Ago  

crushtopher

Posted 12 May 2011 - 05:38 AM

^ What he said. Don't provide the documents they asked you because you do have a grace period. But be sure to read over the paperwork you did sign in regards to the money you put down and accrual of mileage etc.

#19 elessar123  

Posted 12 May 2011 - 06:30 AM

Subscribing to see what happens...

#20 kodave   Huh. CAGiversary!   4390 Posts   Joined 13.1 Years Ago  

Posted 12 May 2011 - 08:34 AM

This thread is going to be good. I can tell.

#21 2DMention   Cyberpunk CAGiversary!   3842 Posts   Joined 16.0 Years Ago  

Posted 12 May 2011 - 01:59 PM

I have a feeling this will be a good thread too.

#22 Dead of Knight  

Dead of Knight

Posted 12 May 2011 - 02:56 PM

haha, they had one standard transmission available. Mine. After driving a stick for the first time AFTER I bought my manual Honda a few years back, that is one thing I know I DO want in any vehicle I ever buy from here on out.

Dammit, guessed wrong! You're one of the few fuckers left, like my husband, who actually has a manual. :lol:

#23 nasum   CAGiversary! CAGiversary!   3480 Posts   Joined 18.0 Years Ago  

Posted 12 May 2011 - 03:25 PM

I miss having a manual, can't use it after blowing out my knee :(
At least I still get it on the bike!

#24 dmaul1114   Banned Banned   24688 Posts   Joined 17.5 Years Ago  

dmaul1114

Posted 12 May 2011 - 03:33 PM

I can't even drive a manual. Automatic or nothing for me. I like things to be as simplified and easy as possible.

#25 EnronLackey   Fake-Rage Hater CAGiversary!   859 Posts   Joined 19.0 Years Ago  

EnronLackey

Posted 12 May 2011 - 03:48 PM

First of all, if your state have a consumer protection office give them a call .. see what you can do about the situation, they might even refer you to a District Attorney due to the type of contract you have. Just cause everyone is "doing it" doesnt make it legal.

Second talk to the loan officer in the car dealership cause they make the last and final call .. ask them if the loan process is complete if so then ask for a complete copy of it .. if they havent started then just tell them you dont want the car and drop the keys on the desk .. then they going to ask you ALOT of questions and I do mean ALOT .. stand your ground if you got the balls .. and when their tactics dont work then desperate measures takes place .. the same sales guy comes out and pleads with you and show you pics of their kids then the manager will come out and show pics of their grandma on a respirator .. if that fails then the car dealership owner will come out and will THUG you into keeping the car .. if you have the heart of stone and balls of steel then you have no problems for them to take it back

But it all starts with your contract, if it aint done thru the process then you got a chance to take it back .. gatta remember, pride and shame goes hand in hand and with these ppl dont give 2 shitza about either and you shouldnt either

Edited by EnronLackey, 12 May 2011 - 04:29 PM.


#26 Anexanhume   Charge! CAGiversary!   3050 Posts   Joined 16.2 Years Ago  

Anexanhume

Posted 12 May 2011 - 04:41 PM

This thread gives me comfort that when the apocalypse comes and we're all driving around like cave men mad max style, my clan will reign supreme for I know how to drive a manual.

#27 2DMention   Cyberpunk CAGiversary!   3842 Posts   Joined 16.0 Years Ago  

Posted 12 May 2011 - 07:07 PM

I know how to drive a manual, but it's a pain in the ass, especially in traffic.

#28 niceguyshawne   Hardcore since '74 CAGiversary!   2510 Posts   Joined 18.2 Years Ago  

niceguyshawne

Posted 12 May 2011 - 10:14 PM

So when do we get an update on this?

#29 silentevil   Most evil man ever!! CAGiversary!   580 Posts   Joined 15.4 Years Ago  

silentevil

Posted 16 May 2011 - 07:52 PM

So when do we get an update on this?

This^

#30 depascal22   Daddy Fat Sacks CAGiversary!   10195 Posts   Joined 17.1 Years Ago  

Posted 16 May 2011 - 08:08 PM

So what happened?