Taking my car from me WTF!!

[Balto]

This is inaccurate and potentially dangerous advice - if financing legitimately fell through, they most certainly can take a car back.

The essence of financing is that the car belongs to whatever bank loaned you the money, until you either pay it off completely or return it at the end of your lease.
They may have to eat the cost of depreciation since the vehicle is no longer new, but they would not fork over money or finance it in house if the applicant's credit application is denied.

What they will do when you refuse to return the car is send repo-men, and add a big ding to your credit report.

The OP handled this very maturely and it worked out for him; but it is still not his car.

Until I have the title in my hand no, it is not my car, sadly.

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[ahitchcox]

Did the letter specifically state that you have to bring the car back?

My wife bought a new car a few years ago and we put about $4,000 and financed the rest over 5 years.. The dealership sent our information to several banks to get the best APR (which I believe all good dealerships would do) and we received a good APR rate.

About a week after we bought the car my wife got a letter in the mail saying her loan request was denied. We were confused at first but then noticed the letter was from a bank that wasn't who we financed through. So basically it was one of the banks the dealership sent our loan application to but they had denied the loan and only sent the letter just so we were aware. It had nothing to do with the loan we were already approved for.

 

[Balto]

Nope, it said I must 'return the vehicle immediately' and to set up an appointment to return it.

 

[MCG]

It is not inaccurate at all. He has a legal and binding contract. It does not matter who OWNS the car. The dealership is the one who would HAVE to fix the mistake by buying down the rate or forking over enough money to get the deal bought at the bank on the agreed upon terms of the LEGAL and BINDING contract they both signed.

The risk is on the dealership to get a deal bought when they spot a deal without an approval from the bank.

 

[edwanny]

Hey guys, sorry for long response I was driving to work.

I really don't understand it either. I have had the car for 7 days now. Appearantly they can cancel it within 10 days of the sign of the lease, it says so on the back of the lease agreement. It honestly makes NO sense to me. They won't be able to sell it as a new car, so they are going to take a HUGE hit on it.

Yes all the paperwork was signed correctly, it's pretty lame but it is what it is. Does anyone who live in SoCal know a dealership I can go to that won't play games? I was thinking of going to Pasadena Honda or Norm Reeves.

My credit is 747 btw.

I got the car from Valley Hi Honda.


I'm really going to miss this car. I really hope I can get into another one.

Did u finance through different banks? Like did u let Honda take care of it to try to get you the best deal? If u did I did too n I got a few letters saying that and I talked to my salesperson and he told me that I was going to keep on getting a few of those from different banks but it didn't matter because those were just the ones who rejected me but they had found one that I could use. So talk to ur salesman before doing anything drastic

 

[brbeaird]

So, just got back from the dealership. I don't have the give the car back. Apperantly when they made a copy of my check stub, it never made it into the credit application.

Not where I expected this story to go, but what a nice ending! Good on you for how you handled this. It is somewhat troubling that the dealership didn't look deeper into their own mistake before issuing a very disturbing "return car immediately" notice, though. Either way, at least it's settled now.

 

[bcfmb]

It is not inaccurate at all. He has a legal and binding contract. It does not matter who OWNS the car. The dealership is the one who would HAVE to fix the mistake by buying down the rate or forking over enough money to get the deal bought at the bank on the agreed upon terms of the LEGAL and BINDING contract they both signed.

The risk is on the dealership to get a deal bought when they spot a deal without an approval from the bank.

The spot delivery and yo-yo financing is a not so common trick that some, although few, dealerships use. Its very shady and luckily it was not the case in this situation. The laws vary from state to state, so in many cases the dealership can get away with such practices

 

[dick w]

It is not inaccurate at all. He has a legal and binding contract.

With a condition somewhere in there that says it is contingent upon the dealer being able to get the buyer financed.

 

[bcfmb]

With a condition somewhere in there that says it is contingent upon the dealer being able to get the buyer financed.

Yup. When I was getting my civic, the final process was financing. I had everything run the night before and the dealership confirmed approval the next day and I picked up my car. I made sure any dealership I spoke with knew I would not be taking same day delivery and even after a deal was made I would not finalize for a few days, as I do not like to feel rushed. The pressure some dealerships try to put on customers to take a car immediately is really unfortunate. It can ruin what is suppose to be a joyous occasion.

 

[dick w]

Yup. When I was getting my civic, the final process was financing.

Note that the "Sales" department always precedes the "Finance" department. A sale isn't really a sale until they've figured out how they are going to get the money.

 

[bcfmb]

Note that the "Sales" department always precedes the "Finance" department. A sale isn't really a sale until they've figured out how they are going to get the money.

That is a good point. I never actually realized that. I only dealt with the finance department with the one dealership I got my car from. I avoided having any dealership run my credit andrefused any deposits until I was 100% sure which vehicle and dealership I would be purchasing from. My thought process was if they could not honor the deal that was made, they are not a dealership I would want to buy from. That happened to me with Toyota. I went in to finalize the deal, sign papers, talk to the finance department, and all of sudden they couldn't find the paper work and the deal was $20 per month more than agreed upon. I simply left and on my way home stopped into Honda and knew instantly the civic was the car I would be getting. I guess everything works out for a reason

 

[Boz]

So, just got back from the dealership. I don't have the give the car back. Apperantly when they made a copy of my check stub, it never made it into the credit application. So I'm good now that they sent it in. I saw, in writing that, that was the issue so I could he good to go now. Glad I didn't beat up on it when returning it xD!

I'm glad it worked out for you. However, if it were me, I'd show the general manager the disturbing letter you received and ask for some compensation for the stress it caused you. As noted above, the dealership should have fixed the issue by sending in the information that they failed to send originally before you ever got that letter!

 

[kjsandiego]

So, just got back from the dealership. I don't have the give the car back. Apperantly when they made a copy of my check stub, it never made it into the credit application. So I'm good now that they sent it in. I saw, in writing that, that was the issue so I could he good to go now. Glad I didn't beat up on it when returning it xD!

I was never asked for a pay stub. Is that normal?

 

[inv4zn]

They only ask for paystubs if you haven't been at your job for a decent time, have a short credit history, or look untrustworthy lol.

I walked into finance office with paystubs, bills, income statements, and didn't even pull it out of my binder lol

 

[dick w]

I was never asked for a pay stub. Is that normal?

May depend on answer to "how long employed there?" Or answer to "monthly income?" Or on other information in your credit app/credit report/score. Or state regulations. The list is long.

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