Here's a new dealership call(scam?)

The finance person at the dealer is different from the loan officer at the credit union. The former may have said OK, the loan will go through without checking with the loan officer, perhaps because it was later in the day or a weekend. then the next working day, the loan officer told the clueless finance person at the dealer the score, and that person panicked and placed the phone call.

But bottom line, it depends on what was signed and what is in the paperwork.

you can tell the dealer that they verbally agreed on a price and financing, which I assume they did, but the paperwork is what counts. Now the dealer may feel bad because they made the mistake, but that will get you a free cup of coffee, if that.

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I am half tempted to call the Ohio AG office to see what they say about this. But I also feel they left themselves an out due to the wording of the other form saying they have 21 days to get the financing otherwise I have to turn the car back in.

Also, there is the wording on the lender’s website that states their requirements for joining

Sure you can contact a lawyer but the lawyer will say you haven’t paid for the car yet. The finance guy at the dealership can only determine the price for the car and not the financing. The dealership cannot tell a bank or CU to approve a loan. That’s up to them. Even if the dealership was using Ford Motor Financing, Ford determines if they approve the loan or not and that could take a few days. The guy was operating in good faith with his understanding of the financing (even though wrong). What would a judge say?? You expect the dealer to finance the car, after the credit union said no? Dealers don’t finance cars. They borrow money on their cars.

Just saying folks, while it sounds nice to call a lawyer, call the Governor, and raise heck, tell me exactly what principle of law that you are basing that on? Certainly not business or contract law. Maybe pain in the rear law but the dealer has no mechanism to provide relief except to maybe beg a bank or credit union to provide the loan.

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The law that allowed credit unions also required restriction so they didn’t have unfettered competition with banks. Banks felt they had no way to compete with non profit credit unions when banks have stockholders to satidfy.

I think OP has already answered his question. The terms of the contract say the OP is responsible to obtain a loan within 21 days. The burden is on the OP to obtain the loan, not the dealership. With interest rates as low as they are , and the OP’s excellent credit rating, like I say, should turn out to be just a minor mix-up.

Yeah, its loosened up some but they haven’t always had a lot of money to work with. I remember about 30 years ago I was having a transmission put in and wanted to borrow $800 for it. I had to keep checking with the credit union for three days before they knew if they had enough money to make the loan. Now they are begging to make loans with cut rates and interest credits. The more you use their debit card the more credits you get to lower a loan interest rate.

@bscar2 Do let us know the outcome , we don’t need details like rate and where .

It says they, as in the dealership, have the burden of finding finance. But that doesn’t mean I won’t look for myself.

Volvo: I do plan on letting everyone know. While I did disclose what I paid for the vehicle, I have refrained from saying which car dealership this actually is. No sense in muddying the waters in case this is just simple oversight on either of us.

That’s exactly the opposite of how his comment reads to me. The dealer has 21 days to set up financing.

I am going to tell you what I told an English student a year or two ago when she was all upset about breaking up with her boy friend. There are many fish in the sea. Yes, there might be a fee for giving them the car back, but I do not imagine you cannot find another car to suit you.

My own non-attorney opinion on this is that most of the error was caused by them, not you. We discussed this sort of issue in my Business Law course needed to pass the CPA exam some years ago. Those who have more experience and knowledge have a greater responsibility in contracts. Their office is supposedly doing this every day and is expected to know the basic rules.

Still, as you admit, you either get the financing or have to turn the car back in. But, do not let them intimidate you beyond that legal reality.

You are right. I misread OP’s comment above.

Good point. I think some people get too antsy to say anything personal no matter how anonymous the case really is.

Well, if the OP wants to KEEP the car, the burden may ultimately fall on them to get financing. Because if the dealer is unable to secure it at the agreed upon rate, then the deal will fall through and the car will go back. If I’m the car buyer, I’d be paying extra special attention to the clauses regarding this defaulting situation to understand my liability. If there are monetary damages outlined to compensate for diminished value, it will be in the OPs interest to find financing outside of the dealer network


Personally, I wouldn’t want to take possession of something of this value without assurances that financing is secured. I am surprised dealers do this without any compensation for diminished value as the car is now USED and can’t be sold as new.

You’re right. This is a tangled situation. @bscar2 - have you called the credit union directly to determine if you can become a member? And if you can’t, have you worked through financing on your end?

Around here the qualifications for credit union membership have really dropped, it’s much easier.

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It’s not clear to me if your sales agreement has an agreed upon financing rate. If it does, and the dealership is responsible for finding the financing, isn’t it just a case of saying “get me the financing at the rate we agreeed, or take back the car”?

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The hope on the dealership’s part is that now he’s gotten the car home. He really likes it. He already thinks of it as his. And he certainly doesn’t want the neighbors to see him tuck his tail and return the new car he’s so proud of. So he’ll be willing to bump the percentage up a bit, which bumps the dealership’s cut up (and makes up for the good deal he thought he got on the car).

It’s a very, very common practice and it should not be tolerated.

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There is also a long list of employers the Wright Patterson credit union allows their employees to join.

They had 21 days to get financing or you have to turn in the car? If that’s the written deal, then I suggest you call the dealership and speak with the finance manager and arrange a date and time for you to turn in the car. If they want to negotiate with you so you can keep it, that’s OK so long as the deal is still the deal. You have two concerns, the total cost and the loan payments. If you liked the deal you got, hold out for it from another lender they can find, or return the car, but don’t delay.

Due to work scheduling, I am really only able to go to the bank on fridays as I get off work at 4 Mon-Thurs and by the time I get out of the parking lot and across town, it will be too close to 5pm to do anything. But I will be going in to my bank tomorrow morning and explaining the situation to them to see if they can meet or beat the current loan rate/payment.
I want to arrange my own financing because I don’t want another repeat of this fiasco and have to turn the car in on a technicality.

[quote=“texases, post:35, topic:115025”]
. @bscar2 - have you called the credit union directly to determine if you can become a member? And if you can’t, have you worked through financing on your end?[/quote]
Actually, I’ve already posted the bank’s website and their requirements to join them a few posts ago, but I am working on my own financing- which is what I should have done in the first place.

[quote=“jtsanders, post:38, topic:115025, full:true”]
There is also a long list of employers the Wright Patterson credit union allows their employees to join.[/quote]
My employer is not one of them, though we do have a local credit union that caters to a lot of my coworkers.

[quote=“shadowfax, post:37, topic:115025, full:true”]
The hope on the dealership’s part is that now he’s gotten the car home. He really likes it. He already thinks of it as his. And he certainly doesn’t want the neighbors to see him tuck his tail and return the new car he’s so proud of. So he’ll be willing to bump the percentage up a bit, which bumps the dealership’s cut up (and makes up for the good deal he thought he got on the car).

It’s a very, very common practice and it should not be tolerated.[/quote]
I would have no problem giving the car back to them. I’ve not been that hard on the vehicle and about the only thing they could ding me for is not giving them a full tank of gas- atleast from my point of view, they might feel different. Hell, they could probably come out ahead if they did the whole used car thing with it as some schmuck might not negotiate the price at all and make them more money- as long as they don’t question why the car has less than 150 miles on it and is used.
This is not the only Ford dealership in Ohio, there are actually a couple others that are closer to where I live than this one- I just happened to be in the area and they happened to have the exact set up that I wanted. And I wouldn’t hesitate to give them a chance should the current one fall through. But these guys to seem willing to work with me for now and I want to try to make it work.