Wildguzzi.com
General Category => General Discussion => Topic started by: vstevens on March 19, 2019, 07:55:51 AM
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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? :coffee:
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Contact your Credit Union , something seems odd about this .
Dusty
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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? :coffee:
If you have to finance a vehicle how can you buy it take it home and then get turned down for a loan? If you have to finance the loan or the amount of money they will loan you is something that is normally secured right up front or even in advance. Most credit unions will pre approve you for certain amount then give you a blank check. You will know the interest rate and maximum loan amount. Once you find the vehicle of your dreams you fill out the check for any amount up to the max hand it to the dealer and you loan starts.
As far as dealing with big banks or little bank what does it matter? I stamp cost the same no matter what bank I mail payment too. An electronic payment can be global or next door it matters not.
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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...
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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...
This right here , from someone who likely knows more about finance than most anyone .
Dusty
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If you bought on the weekend, they ‘spotted ‘ your purchase. That is, they were either confident of the bank approval or they wanted you to bond with the vehicle and take a higher payment if needed. The mileage may very well have exceeded the banks max. Listen to their changes and if you’re happy with the vehicle and it doesn’t jack your rate and payment, let them proceed. In the paperwork, you signed a form saying you would assist in the event they had an issue with your approval. Not a scam, just normal ops in most cases. Also recheck the vehicles value, with the mileage to make sure you aren’t paying too much and that excessive price isn’t the reason the bank said no. Between flying jobs, I ran a Finance department at a major car dealer. +1 on check with your credit union if you have one.
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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...
That's not a function of a bank being big or small thats the dealer doing something shady.
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Hence the word "always"... :laugh:
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Hence the word "always"... :laugh:
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.
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Why is the dealer working with your credit union, instead of you? Did you not seek preapproval from your credit union before going shopping? Did you not call the credit union and tell them you had found a car and needed a load?
Sounds like, as mentioned above, the dealer is trying to steer the loan to an institution that's better for them. They're probably getting some back door money from the big bank that's not going to be coming from your credit union.
Maybe your credit union really does have a 90,000 mile limit. You should call them. It's YOUR credit union, afterall.
Bottom line is if the terms suit you, it doesn't matter who the money comes from.
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We also need so to be looked at like this. It the credit union will not lend money they do not have an interest rate to compare against. Then you have a lender "too big to fail" that will provide a loan. Whatever their interest rate is, is the interest rate.
It is also common for lenders not to lend money on used vehicles. If the FJ is priced 25% above book value because the market will support that's not the lenders issue.
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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.
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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.
My point wasn't directed at loan origination but more who care where you have to send the money. If a big bank gives better terms or only terms why not use them?
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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.
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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.
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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...
:laugh:
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So says the finance guy at the dealership.
And, we all know what upstanding straight-shooters those d00ds are...
:laugh:
Until that checks out then that's all we've got to go on.
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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.
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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.
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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.
He's not buying a bike, he's buying an FJ Cruiser... :)
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If the dealer treats you like this on the purchase, how do you think they will be when it comes time for service. Take it back, find another truck.
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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.
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 🙏
(https://i.ibb.co/wsWK2kg/IMG-1510.jpg) (https://ibb.co/wsWK2kg)
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Great rig for off-roading. Glad it all worked out.
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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.
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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.
Sounds like the kids should buy it for you .
Dusty
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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.
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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 🙏
(https://i.ibb.co/wsWK2kg/IMG-1510.jpg) (https://ibb.co/wsWK2kg)
Sounds awesome, enjoy!!!
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i am more interested in what looks like a cool fiat next to it. is that a 500, a 1959 edition?
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Congrats on the FJ! Sometimes a little communication is all it takes, glad it worked out. Now go get it all dirty and show us the pics!
Paul B :boozing:
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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.
In the history of vehicle buying the buyer ALWAYS paid too much.
If the OP likes the vehicle and is comfortable with the price did he really overpay?
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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 🙏
(https://i.ibb.co/wsWK2kg/IMG-1510.jpg) (https://ibb.co/wsWK2kg)
Congrats, glad it worked out. Cement is a great color. My Tundra is this color and I love how it changes in different light. Has a super fine metallic flake. I have a buddy with an FJ in Cement and the TRD package, is a great truck.
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In the history of vehicle buying the buyer ALWAYS paid too much.
If the OP likes the vehicle and is comfortable with the price did he really overpay?
Whatever you say Perazzimx14. :thumb:
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Congrats! Here in Phoenix FJ's are all over. I just saw two tonight going to the airport. It's not uncommon to see them with 250K miles on Craigslist and they still bring a pretty penny.
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Congratulations. I spent almost 15 years in the car business and it sure sounds to me like you were treated quite fairly. It was not uncommon at all for the dealership to "spot" someone in a car with good credit and take an extra bit of time to shop the loan on a higher mileage vehicle.