Did you recently take on (or consider) a loan of 84 months or longer on a car purchase?
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2020 Acura RDX tech SH-AWD, 2023 Maverick hybrid Lariat luxury package.
We use personal checks and have never had a problem.
If you total your car, and you owe more than it is worth, you are out the same amount of money, either way..
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I'm just balancing all the options, trying to figure out what gives me the most peace-of-mind factor.
We have done this a couple of times in the past 6 months.
I am not on E-Loans side, but I find it hard to beleive that this "product" is somehow tainted. Is it that the checks bounce or is there any added hassle factor with collecting?
I had one of these checks with I forgot the company, it wasnt e-loan, but they were acquired by Capital One. It was incredible customer service.
Even gave me detailed instructions on what to do "if the dealership" balks at the check. They would create a wire.
I remember how it went in F&I...mr. golic here is your financing papers...umm hang on, whats the rate?
Ohh, its um 6.5%.
Well, I think you can do better than that with my credit score, employment history.
No, sorry this is our best rate.
Ok, thanks for your offer, her is my PeopleFirst Check. They approved me for 5.50%
Sorry, mr. golic I am not familiar with company I don't think we can take that check.
Well, says right here for you to call this number and they will arrange a wire.
Ok, how about I match that rate and keep it simple?
I don't know you just said 6.5 was your best offer and these people did a lot of leg work, you will have to go to 5.25%
I mean, was IS the real E-Loan problem other than lost revenue?
E-Loan, Capital One and HSBC Auto are not small, fly-by-night outfits. Their product/service seems to come heavily recommended by buyers (based upon forum posts) and by car buying web sites (Edmunds, Consumer Reports, etc.). So far the only negative comments I've seen seem to be from dealers who, by all accounts, have a vested interest in brokering the financing themselves (since, at the very least, they receive a $100-$150 brokering fee direct from the financial institution they send the financing to - - and I suspect sometimes more...much more). To be fair, some dealers have no problem accepting a PowerCheck.
I would have had no problem delaying picking up my vehicle 48 hours until they received funding via EFT (which is the timing and method as explained to me by the folks at E-LOAN), had they had the courtesy to be straight up and request that. Although I have to say that to me it seems rather petty, as the dealership would not have been able to cash my personal check (had I written one) much faster. And the odds of my bank account running dry are arguably somewhat higher than E-Loans.
Regarding the check, filling in an amount and signing it over to the dealer is the whole point, isn't it? Excerpting from the "Licensed Dealer Instructions" on the back of my PowerCheck (TM) paperwork (numbers are mine for easy reference):
"3. Place the Vehicle Identification Number (VIN) on the front of the PowerCheck.
4. List the borrower(s) on the PowerCheck as registered owner(s) on the title application.
5. List E-LOAN, Inc. as lien holder on the title application, as follows: [address omitted for brevity]
6. ALL documentation is required-for-funding! FAX to E-LOAN at [number omitted] (Use fax cover sheet on reverse):
*ALL DOCUMENTS MUST BE FAXED & RECEIVED PRIOR TO DEPOSITING THE PowerCheck*
Call [number omitted] within 30 minutes of faxing documents.
- Book-Out Sheet or Manufacturer's Invoice
- Bill of Sale
- Current Dealer License
7. Endorse the back of the PowerCheck with dealer's name and deposit in the licensed dealership account."
Reviewing these one by one, item 3 takes all of, what, 30 seconds? I'm sure items 4 and 5 are required by all lenders. And, as the customer, I am only in possession of one of the three documents requested in item 6, so I cannot fax the documentation package. This would take the business office what, another 3-5 minutes?
I don't buy the whole "problems" reasoning - - I firmly believe it is about two things only: additional profit and better control over the deal. And the customer and dealer are on opposite sides of both.
It's real simple ..... customer gets car, dealer doesn't get paid for car.
Dealer does paperwork and title work and can wait for the next 7/15 *business days* for the "real check" to come in ...... in the meantime, the clock is tick tick ticking away at the floorplan cost .. and heaven forbid, the customer(s) don't pile it up and/or get in a family dispute and want a different type vehicle ..
Think about it ..... if you went to the closing of your house, would you want to wait 7/15 business days for your money.? .. in the meantime, Bob and Betty have already moved in..... would you do that.?? ... I think not .l.o.l..
E-Loan can be very slooooow .. that's why dealers call them "Slow-Loan" .....
.. that's why they don't like using them ...
Terry.
How long does it take for funding from "traditional banks"? My experience with Banking is nothing happens overnight and my uneducated guess is it takes 2-3 business days before paperwork even leaves the dealership and gets filed with bank and another 3-5 business days for funding. *shrugs*
Also, how is it any different than a typical trade-in?
Compare the customer with a $20,000 trade-in and a $20,000 E-Loan? If eLoan takes 7/15 days my guess is that is much quicker than the funding of a typical traded-in vehicle which could take 30-45 days? *headtilt* I would think it would take "at least" 15 days just to get the title/release of lien from the current Holder.
The deal is washed and the contract is cashed in 24 hours, big difference .... as far as the trade, the dealer can still sell it or run it off to the auction with or without title ...
30/45 days.....? ...l.o.l.... maybe in Tibet .. regular funding is a key stroke away ... on a bad day, 48hrs ...
Terry.
Well 20 days later the draft finaly cleared and he could pick up his car. So for 20 days the car just sat on the lot collecting floorplan costs, no one got paid and the customer could not drive his new car.
Some lenders are set up electronically with dealers.... Deal gets approved, paperwork signed, funds wired directly to dealer's account. Really fast.
Thanks for the advice.
New Auto Rates:
Type Term APR
NEW
Autos, Trucks & Customized Vans
To 24 Months from 4.99% to 18%
25 - 48 Months from 4.99% to 18%
49 - 66 Months
from 5.49% to 18%
67 - 72 Months
from 6.24% to 18%
Looks like around 5-5.5% would be about right...then you could factor in any cut rate manufacturer financing or rebates.
Car_man
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Smart Shopper / Prices Paid Forums
Does anyone know if you sign up for smartbuy and get the discount in the price is it then possible to pay off the entire price after 1 month without a penalty. Dealer said it is possible but I am not sure if this is possible or there is a hidden fee for doing this. Would like to make sure before I commit to buying.
Thanks Wayne
Does anyone know if signing the paperworks really has to be done at the dealership? How do dealerships claim that they'll deliver the car to your place? What's my recourse to avoid having to drive all the way back to the dealership?
Thanks in advance
Of course might be difficult to enforce that, because they do have to file the correct paperwork with the state DMV, or you're the one who's goosed.
Even so, I'd really press hard for them to send a courier or someone to your home or office, whichever is closer. They're the ones who goofed.
Car_man
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Smart Shopper / Prices Paid Forums
Also, if they do not try to accomodate my request, I intend to tell them that the next time I drive the car to the dealership, I'm giving them back the keys and taking all the bogus documents with the wrong vin#. Is there legal grounds for me to cancel the transaction based on improper documentation. I'd rather not do that since getting another car somewhere is also time consuming, but I'm annoyed by the way they are not even apologetic about their incompetence.
Thanks.
I signed a form that said that if acceptable financing was not found, the car could be returned with a "reasonable" number of miles on it. So with that stipulation, obviously it would have been possible to return it.
I know nothing "for a fact," I'm just saying what I would do in your situation. Depending on your specific situation, perhaps the papers have to be signed in the presence of a notary. Do you have notary services at a nearby bank or perhaps at your office? Could you ask the dealer if that would be acceptable?
I would ask the finance guy exactly *why* you have to return, and why they can't send a courier. See if something can't be worked out more convenient for you. Or ask for, I dunno, extra floor mats or something in return for your trouble in making this 100 mile round trip. (I wouldn't ask for free oil changes, because they are too far away to want to go for service, presumably.)
And I'd also file this away as "reason #37" for not wanting to buy a car from a dealer too far away to reach conveniently.
If they really wanted to they could. If they had any type of customer service they would be apologizing greatly for their mistake and bend over backwards to correct it.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
If they come up and try to really change something that matters, you should have cause to not sign and undo the deal especially if written proof exists that they are trying to change something, and maybe even push for damages.
IIRC from my contract law if it is not material then the contract stands as is, especially if the dealer should have caught it.
Say you're buying a Mustang and the contract says $25,450 but it was a mistake and it should have been $25,540 then the contract stands as written. It is not reasonable for the buyer to recognize the mistake and the seller should have known.
Now if its a Vette Z06 and the contract said $27,500 but it should have been $72,500 then the contract has an obvious error and should be discarded or corrected.
That being said the VIN number is a material issue (it identifies the car) and could present the owner with some interesting legal problems down the line. If they used the proper VIN the price would have been slightly higher its the dealerships loss. But you need to get the VIN number correct and the dealer should do whatever they can to get it right (it was their fault).
From now on I will check the VIN number before taking delivery.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Don't you usually do this? I may be obsessive, but I double-checked it on every single piece of paper I had to sign.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Wayne
Thanks for all the advice.
My fiance and I each have a car that we are making payments on. My name is on the loan for both cars. We both want to get new cars. I tried to get preapproved through my credit union (which is who we are financed with now) to see what my interest rate might be, but they declined me because something to do with ratio of income to debt. I believe that has something to do with an error I made on my application or the fact that I already have 2 car loans in my name.
So, when we go out to purchase our new cars, I'd like my car to be in my name, and his car in his name. We are both looking at cars in the $16000-$19000 price range. Of course we will be trading in or selling our current cars. My credit score is 655 and his is 654 (we are young, don't have much credit history).
Any ideas as to what our interest rate might be? Do you think we could get approved for loans individualy?
Thanks for any and all help.
Since you mentioned fiance I will go ahead and presume that you will be getting married in the future. So I would say unless these cars are giving you trouble keep them and make your payments on time. This will help you get your credit scores up. But whatever you do do not take on any additional debt unless you absolutely need to.
Also if you have any other debt, like credit card debt, that could hurt your credit score. I would suggest that those get paid down as much as possible.
Now if you do go with getting a new car, yes you can get financing. Anyone can get it, the question is what will your rate be. Since your credit union turned you down I would expect you to pay a pretty good premium on your interest rate.
I would strongly suggest keeping your current cars.
If you want to go deeper into this you can e-mail me if you wish its on my profile.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
You're young, there will be plenty of cars in your future. Recently I saw an article that said of the people who are millionaires in their 50's, virtually all of them avoided unnecessary debt in their 20's.
Words to the wise...
We have no credit card debt, the cars are the only thing.
I'm currently making payments on a 2000 Ford Focus that has 89000 miles on it and no A/C (and I live in FL!). It's been good to me but I don't know how much longer my good luck will continue as it's starting to make some odd sounds and it's had a rough life. That's why I would like to trade it in.
My fiance on the other hand has a 2002 Honda Civic EX with 52000 miles and is in excellent condition. I mean, it looks like an old lady has been driving it. He hasn't even owned it a year yet, but I guess me getting excited about a new car has made him want to get in on it to. I've considered letting him get the new one and me using his but it's a stick and I don't know how to drive it.
Anyways... I really appreciate the advice. In the past few days I have been considering what this new debt would mean to my future plans and it really might not be worth it. However, I'm afraid of my car breaking down and having to spend a lot on repairs. What do you guys think?
Wow I thought A/C was standard on most vehicles by 2000. Maybe having a local mechanic give the Focus a good once over. 89,000 miles seems to soon for it to start dying, it may just need a minor repair.
The question of how much you owe on it as opposed to how much its worth comes to mind too. If you owe more than its worth getting a new car becomes that much more expensive.
Since the civic only has 52,000 miles and is running good at least keep that.
Just remember that to have a better future make some sacrifices now.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
I just put nearly $900 to replace the engine and trasmission mounts, a CV boot, and new brakes. A few more expenses like that and I'll be putting more into it than what the car is worth. When is it time to stop doing that?
You should stop that when it cost more to upkeep the vehicle than it does to replace it. Cost includes your time and trouble.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
When they calculated your debt-to-income, did they factor in both of the existing cars getting traded in? Or did they calculate as if you are adding two additional cars? That'll make a huge difference...
Herein lies your problem, your rent is more than half of your monthly income. Then you want to spend at least half of whats left on car payments leaving what around $300 a month on insurance, gas, food, clothing, utilities and the such? It would be nearly impossible to find a loan under such conditions. And you don't want to do business with those who will.
Also never lie on a credit application, it has a tendency to come back and haunt you.
2011 Hyundai Sonata, 2014 BMW 428i convertible, 2015 Honda CTX700D
Have a mechanic look at your AC. Could be you just need the system re-charged.
If you keep up to date on your oil changes and other maintenance, your car should be good for at least another 50,000 miles or so.
And (woman to woman advice here), really think long and hard about buying your fiance another car!! Let him pay for his own cars.
Why don't you try this idea for a few months: whatever you think the payments on a new car would be, put that amount in a separate savings account. (If you have to, just put in the difference between a new car payment and your current one.) See how that feels for three or four months. Consider this your "car account" and use the money to pay for needed repairs if you have to, but try to pay for repairs out of current income.
You'll see yourself building up a nice litle nest egg before you know it. Then consider whether you want to keep that money and keep adding to it, or turning it over to a car dealer. You may be surprised how you feel once you see that stash growing.
To clarify, we live together so I could had put nothing for rent because I could say my fiance pays it. Or at least I thought that would work.
Anyway, you have to protect yourself. You can't foresee the future, and you need to make sure that if necessary, you could support yourself, pay your own rent and your own car payments and your own whatever.
How did I learn that? My dad died young, leaving my mom with four kids to raise, all of us under age 10 at the time. We had some rough years for a while while my mom went back to college to get her degree so she could earn enough to support us.
Sounds like your fiance is still expecting you to buy the cars, so I don't see how in the long run your not paying rent is really saving anything. You're still on the hook for a lot of debt on a not very large income.
Waynelk
I want to help my 18 year old finance a car but do not want to co-sign for a couple of reasons. No credit history at all and part time jobs (she is a full time student).
Generally speaking, is there a % that I could put down so that someone would finance her? I realize the rate would not be great but so be it.
Thinking along the lines of a 15 - 18k car and me putting 40 or 50% down.
Possible? Thanks in advance.
What Should I be expecting? The next car they offered me today... the one I looked at on my own 2 weeks ago, and was told "no way", now suddenly is in my range.. while still being priced at $140k..also with 9500miles and no warranty, but this one has undesired interior color. And still I am told no one will finance me for anything over $85k. I seem to be finding better deals out of state, but they will not bring me a car from out of state. Yet, I found the I Deal desired car in Florida with 2200miles,at $147k.
Then to top it all off, I was told today by a Lamborghini dealer in Washington that if I have a credit score of 710 or better, he can get me in a $140k car no problem. But, I do not want to ship my vehicles there.. then have him happen to low-ball me on trade-in values, where I'd have to pay to ship my vehicles back.