Chase auto loans

Discussion in 'Credit Talk' started by iambroke, Nov 1, 2003.

  1. iambroke

    iambroke New Member

    We just bought a Saturn ION today by trading in my hubby's car (98 toyota) and the loan is thru Chase at 1.9%. Anyone here have an auto loan thru Chase?

    We have 2 CC's and our mortgage thru Chase so adding another loan should be pretty easy...and paying online will be nice!

    The auto finance guy said they had to send the info directly to Chase to get approval but we took the car and he acted like we already had the loan, etc...we signed tons of paperwork. I've never heard of a dealership giving a car to someone without approval from the bank. Is this normal?

    Either way we're happy and really like our payments...230/month!
     
  2. dduke25

    dduke25 New Member

    Yes they have they guidelines already from your score what they can get you.

    Example

    Tier 1 750 up
    Tier 2 700 to 749
    Tier 3 650 to 699
    Tier 4 620 to 649

    No Deals under 620
     
  3. chipper

    chipper New Member

    You never leave the dealership financed. On your contract, you will find a spot where you signed that says 'this contract is pending lender approval'.

    The easiest way to explain this is that you can buy a car on Sunday, when the banks are closed. On Monday, the lender reviews the paperwork to determine if you are approved. Although the scores are used for guidelines, the lender will review the rest of the report, especially previous auto history.

    Congrats on your new car and your 1.9% - that is awesome. I wouldn't worry a bit.
     
  4. Peachkiwi

    Peachkiwi New Member

    That's a fantastic rate! Congratulations! I had purchased a Mazda MPV with 3.5% financing (through credit union) two weeks ago and I had thought then I had gotten a good rate.
     
  5. iambroke

    iambroke New Member

    Our 1st saturn (2001 SL2) we got .9% and we wanted that but didn't mind another 1% on this one as the payment is much lower then our 1st one.

    I find the dealerships offer the best rates when I've gotten my cars. Seems they can offer close to nothing...One car we saw (Saturn ION 1) was 179.00 down and 179/month at 3.9% but I wanted a lower rate then that.

    Thanks!
     
  6. Peachkiwi

    Peachkiwi New Member

    You are correct in that the dealerships offer the best rates especially with the current ecomony. In my situation, Mazda was offering 2.9% financing or $2500 cash rebate. I opted for the latter because I knew the credit union was offering the 3.5%. Congratulations again on a job well done!
     
  7. texan

    texan New Member

    Some dealers do a thing called "spot delivery." There are instances where people have been called back a week or two later for an additional down payment, co-signer or other requirements to satisfy the lender before the car loan is final.

    Although "spot delivery" is legal it is not very etical and can lead to embarrasment for the buyer.

    "Could you please return the car - the bank said NO." This happens to people all the time - as unfortunate as it is.
     
  8. iambroke

    iambroke New Member

    That is fine with me...as I signed a contract with the terms I wanted so if it's not approved that way then fine they can take the car back.

    However they had BETTER give me my trade-in (toyota corolla) back! They took that and gave me this new car in exchange....

    So do they hold the trade until final approval too? Just seems odd that they had me clean it all out, give them the keys, etc...and they gave me 2550.00 for it too off my price.

    Therefore if the loan isn't approved for the terms I signed then I return the new car and get my tradein back? Do they just hold my trade-in til final approval. I doubt that they do. That is why I'm thinking they really approved us but can't say. Just seemed odd.
     
  9. texan

    texan New Member

    Read your contract carefully. There are instances where people have lost their trades - the dealer sold the trade - and per contract had the right to do that. In that case the dealer will attempt to get you financed for a car of less value than the one you originally took home - you agreed to that arrangement in the contract. Read the FINE print.

    When purchasing a new or used auto - "buyer beware." Don't purchase based on emotion, don't rush into the first deal offered and purchase according to what your budget can afford. This will prevent heart-ache later on

    Good luck and enjoy your new wheels!
     
  10. iambroke

    iambroke New Member

    My contract specifically states:

    The contract contains the entire agreement between you and us relating to the contract. Any change to this contract must be in writing and we must sign it. No oral changes are binding.

    Therefore they can't change it without agreeing and signing it. It specifically states the make, model, VIN # and everything of the car we drove off the lot...APR, trade-in info etc....it is just like a complete contract. They can not change it like that.....we agreed to a specific car and term and that is what we signed.

    There is no place that states (I read the entire thing before signing it) what you say.

    It's not like we signed a blank contract.
     
  11. lg

    lg New Member

    don't forget you may of signed a power of attorney as well....
     
  12. iambroke

    iambroke New Member

    POA to transfer title to them, yes I did.
    But I had to do that with my last car too. It has to be done when you trade a car in. How else will they get the title changed to them? They need the title changed and that is how they do it here.

    And this is not one of those drive by used car dealers...it is a Saturn dealership...they are very customer service oriented. He made sure we understood we would get a survey and he wanted good marks on it. I've had my 2001 Saturn for 2 1/2 yrs now and have never had poor service from them. Now FORD is another story. When I bought my ford mustang in 89 the dealership had me sign a BLANK contract and I was so NIAVE at that time that I actually signed it before being financed. They said they would let me know within 2 days my financing deal etc....Well needless to say I was ripped off! I was told my trade in was destroyed and I could not get out of the deal. I ended up financing thru the bank I worked for at 10% (Ford wanted to charge me 14%) and I had to come up with a very hefty downpayment too.

    Ever since then I've gotten the deal in writing and have never ever signed anything that had even one blank spot!

    I went to buy my 98 Toyota Corolla and the dealership wanted me to sign a paper that stated I took the car and owed them so much money for it...I refused to sign it! I told them "you get me financed and call me and I'll come back for the car." Well, they called me the next day and got me financed (with a chp 7 bankruptcy it wasn't great-11% rate) and I came back and signed the completed contract.

    This is our 2nd Saturn....so they had better be good to us! LOL
     
  13. chipper

    chipper New Member

    I was reading back through this post and I am wondering why you are worried about your approval?

    In order for them to wholesale your car, they have to sink money into it to get it smogged/saftied etc. so I think they will keep it around pending your approval, because they know they might have to give it back.
     
  14. iambroke

    iambroke New Member

    I'm not. My original question was if anyone had a loan thru Chase Bank for a car.

    Then it went off on another route when I was told I was probably not approved and it had to go thru other lenders if Chase didn't take my loan, etc...
    I just can't understand how a huge dealership (if what everyone on here says is true-final approval is not given when I drive the car off the lot) can give me a filled out contract with terms, etc...and then turn around and say "oops you aren't approved."
    Just doesn't sound like a feasible financial plan for them...my trade-in needed work too (had a dent and the inside was falling off so I doubt they'd fix it up prior to final approval if that is the case). I'm just alittle confused cause I'm getting conflicting information.
     
  15. sam

    sam New Member

    you will find most upscale car lenders dont play these shenanigans nor do autofinders for credit unions.

    Only when you are at the mercy of purchase price VS finance rate (both at same place) will you get shafted.

    Remember they get back profits on the sale price and/or the financing. If you buy at MSRP, sure they'll give you 0%, they just made all the profit they needed off the car. If you paid $3000-5000 under invoice, they will try to stick it to you on the finance as the finance manager gets his cut which can be shared with the sales person.

    Most high end dealerships don't play such games, as its common for them to sell with profit (or not sell at all). An example: bmw 330ci coupe. You can't really walk into a bmw store and buy one, there aren't many decent ones in stock. You gotta be put on the list. Thus the negotiation power of walking out, etc is kinda fruitless.. Of course auto brokers like autofinders can do a much better deal on such hot item vehicles with the options you want, and get you in line off the "boat" quicker.
     
  16. chipper

    chipper New Member

    I don't really consider this a game or shenanigans. If you buy a car from a BMW dealership on a Sunday, when Chase or your credit union is not open, how do you think that one gets approved? You are always subject to lender approval and someone has to give the final decision.

    It's just a fact of buying a car using 3rd party credit.
    Dealerships are not lenders. Even Mercedes, a high end dealer, must have a representative at Daimler Chrysler (their financing company) give the final approval.

    I can't think of an instance when you drive off 100% financed, unless you bring your own financing.

    Getting that 'call to come back down' because they can't get you financed happens when you are turned down by one bank and need to be picked up by another - not when you qualify for .9% at Chase and must come back to accept 4.9% from the same lender. Finance managers KNOW what you qualify for.

    Also, negotiate the price of the car first. If you get them to $3000 below invoice, you can still get the 0% financing, if you qualify. The dealership cannot deny you special interest rates, no matter what the price of the car may be. However, in one sense, it is true that if there is a huge loss on a car, say $5000 below invoice, and there is NOT factory financing, then you will get hit at a high rate in order to make up for the loss.

    This is why I always say to negotiate the price first, and bring your own financing. OR if you plan on using special factory rates (0%, etc.) negotiate the price of the car, tell them you are paying cash, and before you go into the finance dept., tell them you want to qualify for the special rate. They will because they have to.
     
  17. OleMissReb

    OleMissReb New Member

    If for some odd reason the loan ends up not going through and they no longer have your car (VERY VERY RARE, only happened once in my 5 years in the auto industry), they are required to at least give you the ACV (Actual Cash Value) for your trade in. This is listed somewhere in the contract. In essence, you had 2 seperate transactions, One, you sold them your car for such and such price, and two, you bought their car for such and such price. If the second falls through, then they still owe you for the first.

    The deal I worked where this happened, the delaer had wholesaled out the trade in (a real piece) several days after the car sale and the financing fell through for proof of income if I remember correctly. We ended up just giving him the price we gave him off his trade in for it. About $700 if I remember correctly.
     
  18. DanS

    DanS New Member

    To answer your original question, I have an auto loan w/Chase for six months now.

    I'm on the other side of the loan rate formula - was 1.5 years after a Ch7 BK and looking for a car loan. Put down $2500, borrowed 9500 for 12%. Given my history and needing to rebuild credit, I jumped at the chance to go with Chase. Will approach them when my FICO hits 700 (few months) about getting a Perfect card, will try to leverage the existing relationship.

    Really cool feature of Chase online, if you're not already using it, is chaseonlineplus.chase.com

    It can incorporate all of your online financial info into a "snapshot". Very cool.
     
  19. iambroke

    iambroke New Member

    I am not too impressed with the chaseonlineplus.com thing. I use the regular Chase for viewing only my Chase accounts (perfectcard and platinum and mortgage) and I like that I'm able to pay online on one site too for all three. It seems whenever I use the plus part it can't get my account information or since I change passwords alot I forget which ones go with which accounts LOL....

    I pay all my bills online on each lenders individual website though and am able to view my accounts on them too.

    Now that I have the car note with them I can add that account too and pay it online! YEAH

    Now I wish GMAC had that option!
     
  20. sam

    sam New Member

    i had to wait for the chase loan to approve. I applied friday. Approved saturday. Took care home sunday. They would not give you the car without approval. period. (audi).


    Bmw is different, since most of the cars on the lot are not desired cars. If you want a current year car you will always wait. So they have ability to take their sweet time with financing.

    Go try to get a brand new 2004 330ci in black with all options, you will see what i mean. nobody stocks them, you get on a list.

    And besides, whats the rush of buying on a weekend? A car is a large investment into a depreciating assett. There's no rush to tank your cash on a spur of the moment dealer. Take your time to shop many sources (brokers especially), and you will have plenty of weekdays to complete the deal signed and ink'd.

    I think people that are in a rush are those that fall for predatory practices. Does it matter if you pickup the car sunday or monday ? Doubtful.
     

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