Hey everyone, The other night I was sitting around and applied for a car loan on Eloan.com Expecting to get turned down I got a phone call today to verify some info. I checked my e-mail a few hours later and I had a message from Eloan saying they tried to call to let me know I was approved. You have to imagine how excited I was (seeing how I was just declined earlier this month for an eloan account). Anyway I log on to eloan.com and check the online documents and see that they approved me for 18,000 at 15.95 (I know that's high) but on the application I only asked for 10,000 and they gave me 18,000 so I was pretty excited none the less. Okay so I head out to the dealership tonight with my paperwork in had and start looking at some cars. When we sat down to do the paper work he tried to run my credit. I told him there would be no need for that I already have a loan. He said that they had to run it anyway, I said no they don't. He goes and talks to the finance guy and they decide that they don't really need to run my credit since I in fact have a loan. Here is where the problem came about.... The dealer asked me what bank did I get the loan through and I told him ELoan and he said that they do not accept eloan loans. He said something about eloan not paying them for 2 cars in the past now they just dont take any thing from them. Has this ever happened to anyone (going to a dealer and they refuse to take a your loan from eloan). He did say that if I was able to get a loan through eloan there was a good chance that he could get me a loan through one of their banks at a lower rate. what do you think? I am not 100% sure what my score is but I think it is 575 or so on experian. And I thought Eloan only pulled Equifax, because they pulled experian. Anyway please let me know what you think. d
Okay I for got. Is Eloan an actual bank, meaning is the loan through eloan or are they just a broker so once i sign all the paperwork and have it sent in they will send it to another bank.
Car dealers make money from you in combinations of the following: 1) the price of the car and add-ons (obviously); 2) ripping you off on your trade in; 3) financing a loan. It's possible that you will be able to get a better deal on the price of the car if they are financing it, because that is a profit source for them, but be willing to walk out if it looks like they are trying to pull a bait-and-switch on the loan terms. As long as you avoid a bait-and-switch, the only thing you have to lose here is an inquiry. Just make sure they don't jack the price of the car in reponse to any good deal you get on credit terms. By the way, it is always good practice to shop several different dealers and play them off against each other. If these guys won't take e-loan, and their financing deal falls through, I'm sure you'll find a dealer that will do business with them. This is one of the greatest buyers' markets for cars that we're likely to see (call it the Bush dividend), and everyone is dealing.
Bunter is correct about the sources of money making from you. I think the finance guy just wants you to use their financing. I went to the eloan site and found this in the FAQ: If the dealer doesn't accept my E-Fund Agreement, what do I do? If, for any reason, the dealer is reluctant to accept your E-Fund Agreement, please call us toll-free at 1-800-598-6069. I hope this helps.
Eloan is one of the more reputable internet financing deals. The dealer will have no problem getting his money from them, if the paperwork is completed properly. Dealers like to get you approved through their own sources and add a couple percent on top for their own pockets. Did you tell the dealer the rate you are approved for? DONT! Let them get their "best" rate for you. If you tell them 15% and they approve you at 9%, they WILL mark it up to 14% and keep the difference. Just did that car stuff last week: EQ= 499 TU= worse Exp=530 No bk, or judgements, but 5 coll. accts, Declined by Eloan, people first, road loans, chrysler. Approved by Household ( 18%, 10% down) Approved by Wells Financial (19%) Approved by Ford (23% 15% down) Radi8
Thanks I will call that number tomorrow. I also checked the website to see some of their preferred dealers and I will stop by one of them just to see what is going on. But I thought this was kinda funny... I was at Bob Baker VW tonight and they claim they dont accept eloan payments, however Bob Baker Ford and Bob Baker Jeep accept eloan paynments (as a matter of fact they are preferred dealers). All three of these dealerships are in walking distance of each other in CarCounty Carlsbad. Well thanks for your help. d
I think they are trying to snow you with BS. They already tried to get you to believe that they HAVE to pull your cedit report to sell you a car. So you have already established that they have no credibility. They want the financing comission too, and they hope that you are stupid enough to fall for their lies. Money is money. Call E-loan and tell them what happened. If E-loan wants your business, they will call the dealer and straighten it out. Regarding the dealer. If you start to take your loan and your business elsewhere, the dealer will change their tune real quick. I've had car salesmen try to pull the "Price depends on your credit rating" stunt. That is my clue to read them the riot act and walk out the door. Please don't ever forget, YOU are the customer, and THEY are the vendor. YOU have the money THEY need. They need you more than you need them. They often try to get that reversed in your head.
Hi, I'm new here but have gone thru the car buying nightmare recently myself: First off I got the best info from carbuyingtips.com...really helped me learn how dealerships "make" money off of the consumers. I got a loan thru peoplefirst.com and when in the dealerships, just told them I'd be paying with a check. They pressed for details but that was all I'd tell them. Negotiated the price of the car I wanted as if I were a cash buyer. Don't let them run your credit....Frankly it's none of their business at this point since you are already financed. I took my time, test drove the cars overnight/weekends... Happened onto a car salesman that didn't try to jerk me around at all. We never discussed financing after I told him I'd be paying by check. Finally the "finance manager" did have to call people first to make sure all the correct paperwork was filled out...but other than that, it went very smoothly. The best part was when the finance guy said "Do you mind telling me what interest rate you got?" And I said, "Why yes I do mind, as it is none of your business" *laugh* Good luck, Chelle
I just purchased a car on Saturday and used PeopleFirst. Dealer tried to pull the same crap with me. Started out by saying that they had had problems with "Internet loans" in the past and didn't accept them anymore... but, he was sure that their F&I person could match or beat the PeopleFirst rate (6.9%). After talking to the F&I person I found out that she thought the only way they could beat that rate was by keeping the loan to 48 months or less and I wanted to go 60 months so I didn't even let her run my credit. After this I told the salesman that the PeopleFirst loan was a better fit for my needs and since they didn't take them I would just have to find another dealer. After telling him that they suddenly decided that they could accept one of those evil "Internet loans" after all. To be fair I have heard of dealers having problems with Internet lenders because of required paperwork not being submitted in a timely fashion (from both the borrower and the dealer). Just make sure you understand what documentation the lender needs from you and make sure that the dealer understands what documentation the lender needs from them and everything should go smoothly. Good luck and hope you find a nice car. Kirk
Keep the testimonials coming... I am going to purchase a new car around the winter time and I plan on using e-loan or a similar service
Some of these dealers act like they are doing you a favor by selling you a car. If they won't take your loan, FINE, take it to somebody who will.
Hey everyone, Thanks so much for your help. I think that since I am not in a hurry to get a car I don't feel pressured to rush into anything. I called on of the other Bob Baker dealerships today (Its like two car dealers down the street) and asked if they took eloan payments....the guy said YES, I told him about what happened last night at the VW dealer and he said that all Bob Baker dealerships should take eloan payments. He said that they would like to finance you through one of their lenders (so they can make some more money i guess) but when you come in with an eloan payment it is guarenteed money as long as your car falls within the guidelines of the loan. So in short if I really want to press the issue I could and I could get them to take the payment (or just go to the other bob baker dealer and tell them what car i wanted and they could do some kind of transfer) and I could buy the same exact car at a different bob baker dealership. but seeing how i am not in a rush i dont think i am going to waste any more time on them. I may just hold off a few months and see if I can qualify for a lower rate (they gave me 15.9 for 72 months) Once again thanks for all your help and love the stories.
