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Buying a Vehicle with Cash, Check or Credit Card

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Comments

  • isellhondasisellhondas Issaquah WashingtonPosts: 17,610
    Don't worry. They will be more than happy to take your personal check!
  • Apparently all Honda dealers are NOT the same. I just bought an 08 Accord six days ago. I traded my last one and added in cash for the down payment. The balance was on a check against outside credit line (financing that I got via Internet lender).

    The dealer disregarded specific instructions to fax copies of certain documents pertaining to the sale. This was to be done BEFORE they deposited the check. The lender has repeatedly called the dealer's finance manager to no avail and now the check (which the dealer deposited anyway) is going to be returned unfunded.

    Since this transaction is in excess of 20K what's holding the dealer up from getting their money? A simple fax of five minutes is all that's needed.
  • joel0622joel0622 Posts: 3,302
    That has nothing to do with it being a Honda dealership. It is just a case of a sub standard employee. All lines of work have them, plumbers, painters, preachers, and prostitutes, you can find a slacker in every group.
  • I don't believe that's the case. When I contacted the finance mgr this past weekend she said that the paperwork was in the accounting dept which was closed for the weekend.

    As of 3 PM today (Monday) no paperwork has been faxed. (How many employees does it take to fax 5 documents? BTW, I have three of them myself.)

    What would possess a business to ignore pursuing funds due to them?
  • m6vxm6vx Posts: 142
    Actually, even just ONE inquiry can knock your score down up to 5 points! Why get your credit slammed when it's not necessary?

    Uh...... excuse me for my ignorance, but why would an inquiry knock down your credit score? What's the logic?

    Thanks.
  • Kirstie_HKirstie_H Posts: 10,824
    5 points really isn't that much and should NOT make the difference in what financing you get. The idea is that if you get a bunch of inquiries, it will knock down your score to a level that may make a difference. Why? Because if you get a bunch of inquiries, it looks like you're shopping a lot for credit, meaning you're either having a hard time getting any (because of personal finance/job change) or that you are trying to overspend.

    One inquiry, related to a product that you're going to actually purchase? Not worth going nuts over. So I apply for an auto loan and it knocks my credit from 745 to 740... a couple of on-time payments on that loan and it's back up again.

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  • joel0622joel0622 Posts: 3,302
    The 5 points per inquiry deal is a myth, it is not true.
  • isellitisellit Posts: 15
    Normally a cash buyer will pay more for a car as listed on the buyers order.

    Car dealers have back door deals with banks to steer a customer to them for financing from any where from $150.00-250.00 for each approved loan. Multiple banks compete with the dealer to provide car loans. The more banks competing the higher the back door deal or kickback. Also the dealer will bump the interest rate the bank quotes up 1/2 to 1% to make an added profit off the loan.
  • wlbrown9wlbrown9 Posts: 835
    Do your research first, shopping next. If I go in with good info that my credit union will finance me for rock bottom rate (say 3.99% .. it was 4 years ago) I'll give the dealer a chance to match that if they start off higher. If they can bump the bank quote .5-1% and still beat my rate, then I've saved money. If they can not at least match the rate, I'll run the paperwork around. Last time I financed the dealership had a bank that to quote them "did not want to lose any loans". I told him my deal from the credit union (3.99%, no loan fee) so he pulled out his book that showed current local deals and verified the details and matched it. If they paid him a few $$ to get the loan that is between them.

    Research beforehand and then you know if they are trying to screw you on the deal. Example, if I plan on going 5 years at best rate, 3.99% in this example, I check my financial calculator... $1000 @ 3.99% for 5 years is $18.41/month. So, if I decide on something that the total financed would be $20K then I know my payment should be $368.20 or at least within a couple $ of that. When the dealership starts claiming to be at those terms but is saying it will cost you $425/month then you know they are possibly packing mop & shine, or something else that you are not planning on. You also make sure they are not quoting you a 72 month payment to get down to that... Just don't let your guard down or it might not work out as 'planned'.
  • Please help as this is a little worrying and don't know what to do

    I bought a car yesterday by bank financing. I was already approved and did have a loan account number. The dealer whilst processing did a new loan application (i think) and now my account online shows two applications for a loan. The dealer was supposed to use the already approved loan that I had.

    since i am doing this for the first time some questions-

    -is this the norm? will my bank see this application from the dealership yesterday and basically consider this as the original application for auto loan that i had applied for or will it consider it as a new application?

    the reason i ask is that my original application was all clean and good to go. this new application that came in yesterday from the dealer whom i bought the car from has one document required which i cannot provide.

    Just to simplfy since i know this is a little confusing--

    -on the 4th of this month i had applied for an auto loan with my bank. approved and all doc problems solved, i was good to go.
    -went to dealership yesterday, told them i have bank approval, they said fine, fill in the paperwork, all went through
    -i came home and logged online to my bank account and now see 2 applications
    -wondering if now the new application is going to be a problem as the bank will void the old one that i had got and was clean

    Thanks much for your responses, really worried here.
  • jmonroejmonroe Pittsburgh areaPosts: 5,540
    this new application that came in yesterday from the dealer whom i bought the car from has one document required which i cannot provide.

    You haven’t said what the document is that you can’t provide. If that is a personal thing you don’t have to say what it is here but I would call the bank to see if they can clear this up.

    If you already got approval for a loan from that bank I don’t think you would have a problem but I’m not in the biz.

    If you hang on a little longer a salesman may show up. A call for help by the host went out to another forum and there are some pretty savvy people that hang out here at Edmunds but I can’t see why a call to the bank will hurt.

    Good luck and don’t worry, it’s only a car purchase. Paper problems can always be fixed.

    jmonroe

    '09 Genesis V8 and '12 Legacy Limited 6 cyl

  • Thanks.

    Its a doc that shows i paid off my charged off account that shows on my credit report. but i have disputed that fraudalent charge. so i dont want to pay them.

    i am going to call the bank, hopefully they can clear this.

    thank you
  • isellhondasisellhondas Issaquah WashingtonPosts: 17,610
    OK, you can relax.

    No smart dealer will assume that when a customer tells them their loan is "Pre Approved" that it's a done deal.

    To protect themselves, they will have the customer fill out an application. They will then have an "Option Contract" ready to go just in case the "Pre Approved" loan doesn't go through.

    No, I hav never had this happen but it does happen.

    The dealer faxes the information to the customers' lender and the lender delwys paymnet fotr some reason or they decide they want to throw some "stips" in before they approve the loan.

    So the dealer doesn't get paid. The dealer will then call the customer and they will prod them to get thier lender on the ball. We do like to get paid!

    As a last resort, the dealer can use the Option Contract fo fund the car deal.

    As far as your chargeoff that has now been paid, it couldn't have hurt you too bad or you wouldn't have been approved. If a person has otherwise good credit the lenders will assume it was a mistake of some kind.

    I wouldn't be worried.
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