Has any one had this happen? Today we went car shopping. I knew exactly what was on the reports & the score of Equifax which was 627 for my husband a little higher for me. I expected a higher then prime interest rate. We picked out the car & went in for the financing. They came back with 0% financing for 60months. We almost fell over. Went in to the finance office went over everything, signed the loan papers. She put them in the envelope & we took the car & went home. After going through the papers we found one that had three different items on it. 1)lemon law 2)did not apply to us & 3) was a statement that we were taking the car without final loan approval. if the financing isn't approved they want the car back.??? Does this real happen? We are freaking out after all this that they'll call & say Sorry. Of course by the time we got home no one was in at the dealership. Thanks for any comments. Becky
when you sign that form to get the car, the one that says if they get financing, you will buy it.. you need to make sure it says something like 'contingent on 0% financing' or whatever they told you. problem i've heard about on the radio is some dealers letting you go off with the car, then a week or so later calling you back and saying 'oh sorry, we couldnt get 0% financing for you, so you'll get <insert higher rate here>%' I have not experienced this myself, as I have bad credit and always buy crap cars with 20% interest rates ;=]
I know how you feel We signed an installment Sale Contract which looked exactly like any loan I have ever had. I didn't see anything about if this sale... Just the comment on the Lemon Law sheet they put in the envelope. Becky
"SALE CONTINGENT ON 0.00% FINANCING"...AND THE CAR CAN STAY AT THE DEALER UNTIL IT IS FINALIZED... With 30 second TARGET VISA, CITIBANK AASILVER+AAGOLD~~~why would it take longer than an hour (or even 24 hours) to decide APPROVED/DENIED for a car???
I agree with GEORGE here. I was a victim of the 'spot delivery contract' (didn't know I'd signed one). Tell the dealer no deal unless the financing is approved, no spot delivery, the car can stay here until you have final approval. Why should buying a car be any differen't from buying a washing machine?
Why the hell did they call that law "Lemon Law" ? Was this a term that just came out of the past. I know hey call junk cars lemons but it must be a story behind it.
Do you trust the dealership? This is one of their tricks...put you out in the car, call you a day or two later with a story about the initial rate falling through, "but we did get you financed at xx%." People dont want to return the car after they have taken it home. Dealers DO want to make money. Did you give them a deposit? trade in? Be prepared for a lot of resistance if you should decide to return the car. Is your contract contingent upon financing at zero percent, or just contingent upon financing, of any sort? I just went through this 2 weeks ago. Since they wanted to change the interest rate, they needed a new "truth in lending" disclosure signed. NO. I went to the dealer with a friend, leaving their new car at home. Told them they'd get it back as soon as they produced the keys and title to my trade in. Isn't this "bait-and-switch" and therefore illegal? Radi8
www.carbuyingtips.com That's how most auto contracts are. I'd worry if you did a trade-in or down payment. Otherwise if they call that they can't get financing you could just walk away from it; or wanting more money, or different terms. Check your state laws too, here, if you use a trade-in, the trade-in remains on hold so to speak, until financing is approved. Lemon laws only apply to used cars, I thought. Sassy
Nope, lemon laws are for new cars as well. Several years ago I actually was able to turn in my originally brand new Nissan van under lemon law. It was an unbelievable fight but I won!!! Basically if during the first year (I think) your car goes into the shop more than 1 time for a serious safety defect, more than 2 for a regular safety defect or more than 3 times for any other defect or is in the shop for a cumulative total of 30 days or more can fall under lemon law. l. This was in California and the laws of may have changed somewhat but this is what I remember. There is a federal law (Magnuson-Moss Warranty Act or something like that) as well as state laws for and I can't understand how a dealership can tell you cannot have protection under it. That is like having you sign something saying they can alter the contract at any time, unilaterally. It's illegal and they can't do it. They may want to, but they can't. As far as having to return the car, don't be afraid to do it if need be. Trust me, they don't want that car back. I can almost guarantee you that they will try to get more money and/or interest. I've had this happen to me many times. The last time they said I needed to re-sign some contracts because they couldn't get it at the agreed upon interest rate. I told them no thanks and I would be on my way to return their car and to please have my trade in waiting. THey stammered like crazy and said they were going to try to run me through a few more banks and see what they could do. They were eventually able to find a bank to take me for the agreed upon interest rate. I think this kind of thing is such a scam. If I called them after the sale and said I changed my mind, I don't want to pay that high of an interest rate and to lower it a % or 2 they would laugh their butts off at me. They are just hoping you will be so excited with your new car or don't want to be embarrased in front of friends and family that one day you had a new car and next day you didn't. Just be tough and I would look into that lemon law clause. You might want to report them to some governing agency to see if it is legal. I can't imagine that it is.
We all ready decided to return it if they want to play games. We did put down a $1000 on a credit card for down payment. The financing was through GMAC & the dealer ship is a Saturn. Since I have only ever dealt with Ford/Mercury & never had problems. I guess I never heard of these types of deals. It had nothing to do with lemon law. The statement of "...recevied before credit approved..." was also on the same sheet explaining the lemon law procedure. They said nothing about 'contintent upon finacing/or interest rate'. Just, 'you quailify for 0% at 60 months'. I don't understand why they would go through all that. I would think most people would return the vehicle & file major complaints. I know I am if something falls through. We were told it was based on our actual credit history & not on the score. That was a first I heard anyone ever do. It's getting so I don't even want to step out of the house anymore. I swear everyone out there is trying to run some scam or another. I guess I just sit back & wait. I know my husband took his old car to work today Becky
Because of their one-price-for-all, no dicker policy, Saturn can only make extra money by playing with the financing and with add-ons and your trade-in. Saturn customers have a reputation for being confrontation averse (they are attracted by the no-dicker policy), so they are probably betting that you'll meekly take whatever rate they give you.
GMAC shouldn't take more than 24 hours to approve you. If it has been a few days, they are probably playing games with you. I recently purchased a new chevrolet. I had to forgoe the rebate to get the low interest rate. I was surfing the net, and came across a class action attorney in TX that was looking for people who had this happen to them. The thing is, you really don't know what negotiations go on between GMAC and the dealer. You have to trust the dealer. The dealer gets a kick back off of the interest rate that they give you. So they don't necessarily have your best interests at heart. Good luck, and I hope for your sake that they are not trying to scam you. That would suck.
1*I can't understand how a dealership can tell you cannot have protection under it. 2*That is like having you sign something saying they can alter the contract at any time, unilaterally. Maer ============= 1* they can but a contract that is contrary to law can't be enforced. 2*This is exactly how credit card contracts work.
be sure to take the car on a long road trip so if you have to return it they can have a nice 1000 mile used car. Heh a friend of mine did that with a pontiac when they screwed them. Gave it back with 1000 miles, ouch the depreciation on that car musta hurt the dealer.
I did the same thing on a honda in '97 spot delivery huh? Well, here's the honda gimme back my trade-in and deposit! teehee
There was a news item a couple years ago where a dealer pulled this. So, the customer brought the car back in, but her trade-in was gone, they sold or hid it very quickly. (I can't remember.) I don't know how it was resolved, but it made the 6 oclock news as they were trying to force her into accepting a loan way too high. ducky
