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Bought a super clean one owner fj cruiser last week. Great truck and really like it. But I got a message from the dealer finance guy last night saying my credit union won't finance due to higher mileage (90,000). He says they got a another bank (too big to fail type) that will finance. I've researched this and 'spot delivery scam' Pops up on the internet. I'm inclined to give the truck back - don't want to deal with big banks. I do like the truck but... should I walk away?
As far as dealing with big banks or little bank what does it matter?
Not always true...Sounds like the dealer is trying to steer you to a bank that is going to charge a higher interest rate to you, and perhaps he's taking a cut of the extra finance charges. Be very skeptical...contact your credit union directly before signing anything...
Hence the word "always"...
Years ago when we got our mortgage we dealt locally. The mortgage was then sold to a national chain and then sold several other times. What I figured out was it had no effect on the loan we just had a different address to mail the payment too. Since it costs the same to mail a check next door or across the country it was no big deal.The OP doesn't want to deal with a big bank. Not sure why? If they give you a better rate what does it matter who you send the payment too each month. I think the OP's real problem is the dealer not the banking system.
You're mixing two concepts: Item 1 of Loan origination and the related interest rate, vs. Item 2 - having a loan sold to another institution after it has been originated. The second item is contractually bound by the initial interest rate offered...100% aligned with you.Either way...the OP needs to get comfortable with the rate and term offered, regardless of whether it is provided by the CU or Bank offered by the dealer. It's simple due diligence...nothing complicated.
He says they got a another bank (too big to fail type) that will finance.
Don't over think this. What's the APR of their bank vs your credit union? The dealer can bend a little on APR. If you can't live with the results....turn the truck in.
There is no rate from the credit union as they won't provide a loan.
So says the finance guy at the dealership.And, we all know what upstanding straight-shooters those d00ds are...
Don't use credit or take a loan to buy a bike. If you don't have the money, you can't afford it. I haven't used credit to buy the last 15 or so bikes I have had. By not taking a loan you save the money you would have paid on interest. This quickly adds up to where you will no longer have the need to do that just to buy a bike. Besides, paying cash betters your bargaining power.
What are the new terms? If they have changed, you can just give the vehicle back and walk. If they are the same, no issue. You likely have many credit unions you could join; see if any of them will finance your rig. Call the credit union that turned it down and see if it is the loan to value or mileage that is holding your deal up. LTV issues could indicate the price is high or the extra products you may have purchased were too much. I won't pry into your credit history, but that can affect LTV as much as rate. Point is, without seeing your deal and the approvals, any reason or opinion I may offer is pure conjecture. Ask questions of the lender. Information will allow a clear decision. Also see if your state has a bushing law. Your contract may be enforceable under your current terms. Just make sure they are the terms you want.
He's not buying a bike, he's buying an FJ Cruiser... :)
If I could pay cash, I would. But after putting 4 kids through braces, 3 kids through college... , weddings and grandkids... and cost of housing in SoCal... you get the idea.
All is well. Terms haven't changed. After talking to the credit union, they just didn't want to finance it cause it has higher miles than they usually want. The dealer was fair with me. Told me they would support whatever decision I wanted to make. Since terms didnt change and I really do like the fj, I kept it. It's a unique 4x4 and a special edition trail teams, cement gray (a kind of blue-gray) with TRD suspension and wheels. Next week I'll be off-road in Anza Borrego enjoying the superbloom 🙏
My Credit Union goes by the NADA value. The NADA value takes mileage into consideration. If your credit union truly denied the loan, it is most likely because you are paying too much for the truck.