chrissix

Happens to people all the time. Actually happened to a few of my soldiers and its totally legal.
Your best bet is to use your CU.

Krazylegs

I am courious what would happen if he just ignored the dealer. Would they send a repo truck? That would cost the dealer more than the $1,000- (10% the value of the asset). the OP did not break any contract that he signed, so it can't hurt his credit. The car I assume is registered to him so he is not breaking any laws driving it.

IncaPower

Yea the car is registered 2 me. I have the registration in hand. Called Honda's Bank no record of me going for a loan my payment ain't due until Friday and the dealership wants me 2 bring the 1000 plus the first payment on Monday.

CBR2200

Is this $1000 going to come off your loan principle? If so then no biggie if you have it laying around. Otherwise just have them cancel the contract and go with your original pre-approval through your CU. Even if its .5% higher or something, its still not going to add up to $1000 very quickly, if at all.

KJSmitty

Bottom line - you have three options:

1. If you want the car for the contracted price, return with a check in hand (from CU) for that amount and just say: "No problem men, I have my own financing, here is the check for the sales amount." Do not leave until you have paperwork stating paid in full!!

2. If you can't get financing on your own yet want to keep the car, be prepared to take what they "give" you - standing up, sitting down, or bent over.......

3. Lastly, if returning the car is better than taking on a crappy financing option, drop the keys in their lap the minute they want to "change the original contract!!" Don't just be thinking monthly payment amount either. Run the current numbers with your CU and others estimates including another $1000 just to back up the dealerships offer etc.. They either screwed up the financing or fumbled the numbers and are now trying to recoup. Of course, down right fraud is the more likely culprit.
-Just be prepared to be professional and use the words "breach of contract", deal is terminated, here is your car. Most important - make sure the car is void of all your belongings before you even approach the lot. Have someone follow you to the dealership to facilitate a ride home and for moral support etc.. Like I said, be fully prepared to just walk away with nothing and don't look back!

I would be all over option one, but at my age credit/access to funds would not be an issue, nor would I have left the lot initially without the deal finalized etc.

Option three would be the only other direction for me....

Did I say be prepared???


BEST OF LUCK!!

Krazylegs

Who paid for the cars registration? Was that rolled into the $0.00 down deal? I still think that you might have a couple months of free driving. Somone has got to provide you with written notice of intent to reposses the vehicle I would think since the vehicle is registered to you. You entered into a contract to purchase the vehicle, not to rent the vehicle so if they are taking the car back, you don't owe them any money. You did not breech the contract in any way, they did.

anx1300c

iTrader: (2)

You guys don't seem to understand that there is nothing illegal about this, nor is it considered a breach of contract if the buyer signs the form allowing them to do so, which the OP likely did. This is how dealers cover their asses by sending cars down the road in short order. The deal is not binding until final bank approval. Your loan still has to be formally approved by the lender, which can never happen at 6PM on a Saturday. Banks are getting tighter in what they'll approve now with the falling economy also. Three options here:

1. Suck it up and pay the extra.

2. Go in with a check from CU for the full amount.

3. Give the car back. Yes they can legally charge you a reasonable amount of money for the time you used it, which should be found in your paperwork. It's usually a "per day" charge.

anx1300c

iTrader: (2)

Oh, and of course there's also option 4. Go into the dealer and ask them to suck it up and kick in the grand, but then they'll probably just skew the APR if they do so.

KJSmitty

The problem is you are right - it's not "illegal" yet it is a shady practice that many dealerships do not use... I have never experienced this in over 40 yrs - nor have I ever had a credit issue however, and that is the only time this practice should remotely be seen.... As in, here is the car, give us a few days to finalize the financing.

Bottom line he does have a contract that states a price and other finance specifics - we don't know the small print. Either way, this should have taken place within 2-3 days of him taking the car - Monday if he took possession on a Fri etc.. NOT THREE WEEKS LATER!!!!
This is a near fraudulent tactic that some dealership's use - wait for the customer to fall in love with the car then tell him/her they need more money to finalize the deal.

I would drop the keys in their lap and walk just out pf principle. Obviously one needs to read the contract closely to see what rights/options he has if any.....

Have I mentioned dealerships suck today?!!!

FuriousSam

Paragon is the worst!!! There is nothing more to add since there are a lot of information here already. I would probably throw the keys in their face and hop on the subway to the dealership in Manhattan and strike a deal with them since you have the numbers in your hand to see if they will match it.

anx1300c

iTrader: (2)

Oh, I agree totally. Three weeks is an absurdly long time. There should be a law that limits the time frame to a week or so. That's plenty of time for them to finalize the note with any lending institution. I think in this case though, something may have slipped through the cracks since as much as dealers like to play games, they generally don't screw around when it comes to getting paid. It's not like there is any extra money in it for them; they're still only receiving the same 22K plus fees, and every day they don't have that money, they're losing.

When I bought my TL out of state, I had a check from my CU with me. Well, I forgot to sign the check when doing the paperwork and a couple days later, my salesman called and informed me of this. He said that instead of making me come back down to sign it, they would overnight it to me to be signed. I had to smirk that even the idea of me coming back down even crossed their minds. It was the finance manager's sole responsibility to ensure everything was in order, not mine. I should've sat on the check for a few weeks.

anx1300c

iTrader: (2)

Oh, I agree totally. Three weeks is an absurdly long time. There should be a law that limits the time frame to a week or so. That's plenty of time for them to finalize the note with any lending institution. I think in this case though, something may have slipped through the cracks since as much as dealers like to play games, they generally don't screw around when it comes to getting paid. It's not like there is any extra money in it for them; they're still only receiving the same 22K plus fees, and every day they don't have that money, they're losing.

When I bought my TL out of state, I had a check from my CU with me. Well, I forgot to sign the check when doing the paperwork and a couple days later, my salesman called and informed me of this. He said that instead of making me come back down to sign it, they would overnight it to me to be signed. I had to smirk that the idea of me coming back down even crossed their minds. It was the finance manager's sole responsibility to ensure everything was in order, not mine. I should've sat on the check for a few weeks.

balla01

yea man i had this happen to me when i bought my 99 eclipse gsx, btw it was awesome. But yea, they said we need you to come back and put some money down blah blah blah..........And i said no im not doing it and you can have the car back. Well after i told them that, they called me back a couple of days later and said they "straightened everything out with the bank." Its all bs tell them you are returning the car, and they will back down trust me.

AcuraTL_driver

............almost a month? No dude....go to your CU and get that approved. Its already in your name, not the dealers. Its been in your possession for almost a month now....ask them if they can finance you based on the amount of miles that it has now, lol. This is an error on the dealerships not on the buyer. The buyer can only go based on what is given, showed and said to them. Just read the contract before you go there....most dealerships don't know the contract like the back of their hand....if you go in there knowing the contract real well, they'll be more willing to work with you....trust me...same thing happens with insurance....

YeuEmMaiMai

i even had one car dealer tell me that my bank denied me even when I had a blank check from them in my hand. look on his face.......priceless lol

mcflyguy24

Lesson learned. When I buy my next car I'm going with my credit union or an online auto lender, unless they can beat the APR without trying to increase the sale price or lie and tell me in order to get a lower APR with them you need to buy a warranty, ect., ect. They play games once they have you in the box. They all do it, because it's their job, but some dealers go overboard to the point where it's almost criminal.
To the OP:
What happened to you is called a spot delivery scam. There's no way in hell it took three weeks to process the loan. Throw the keys in their face and get a car from another dealer with your own financing lined up.

kasendorf

IncaPower, I've read through all of this and you have never stated what your contract says and who the lender is. It obviously is not Honda finance if they don't have any record of your application. I think you need to read the contract before you decide on your course of action. New York State has lending and disclosurer laws so your signed contract should be clear about your obligations. Did you read through it when you picked up the car? This sounds like either someone screwed up the contract papers at the dealership and they want you to compensate them for their mistake or that the contract states a $1000 deposit that you were supposed to pay that the salesman forgot to collect. Read what you have signed. It will include all conditions of the sale including any language about a down payment. If it says that you were supposed to pay the $1000 and you didn't than you are out of luck, write the check. If it is a final sale with no mention of a deposit than you owe them nothing and don't be intimidated. Make sure that you approach this calmly and maturely. Good luck and share the results.

anx1300c

iTrader: (2)

But if he put his John Hancock on the aforementioned spot delivery rider, he is still on the hook. It will expressly state that terms of sale are not binding until final bank approval. I do agree however, it sounds like the finance manager went on vacation or something and some paperwork got shoved under some folders. I wish the OP would go through his paperwork and relay to us everything he has.

..Mark..

Is it really that hard to type to instead of 2?

IncaPower

Went back 2 the dealer 2day and i paid them the 1000. Its over. ...Mark... hope u like my post.

IncaPower

Got all the paper work from the dealer was not leaving until i had that and no money was going 2 change hands unless i had that. Financed thru HONDA. When i got home i called honda and they said my paper work should arrive with in 7 business days.

KJSmitty

So did you end up giving $1000 more for the car or just require an additional $1000 down to reduce the principal/"applied" to the principal to facilitate financing etc.?

Either way ,as you said it's over. Best of luck with your TL!!

YeuEmMaiMai

glad u got it taken care of and like the others asked where did the $1K get applied?

05tlguy

[QUOTE=IncaPower]I bought it at Paragon Acura. My credit is real good. I already had a loan approved thru my credit union but the dealer matched the APR and i didn't want 2 wait 2 days for the check from the credit union. Can i still bring it back after 3 weeks???[/QUOTE

Paragon Acura is close to, if not THE MOST disreputable car dealer in the world!! My wife and I RAN out of that place!!!!! The salesmen are seedy, rude and cant even start to be honest with you...we couldnt get a straight answer out of 4 sales reps as to the price or whereabouts of the car we were looking for! The dealership is in between 4 or 5 chopshops in Queens, and has the same "uncomfortable" feel to it! YOU KNOW YOU ARE BEING SCAMMED AS SOON AS YOU WALK ON THE LOT! BTW-- google the dealership and the owner and you will have your answer... Dump that p.o.s on the curb, tell them to f-off, and go to ANY other dealer to buy your car!

anx1300c

iTrader: (2)

He has no idea. And then we wonder why dealers think they can screw everyone that walks through the door.

millarduck

You should complain to the BBB and make a complaint to your state's (especially since you're in NY) Attorney General. I have Honda financing, it only took a day to get approved. This is a nasty practice, and the more people that complain, the more likely the AG will clamp down on the practice. 3 weeks is not common in today's credit age to get financing no matter what your credit is. I hope you made the check out to the finance company and not the dealer.

ggesq

iTrader: (1)

How do you know? Did he tell you via PM or something? He hasn't even responded in the thread.

Really. Is that necessary? The OP is a new member on this forum and he is seeking our help without being a douche. Let's try and be civil here without inciting a flame war

gotjesus

man.. hate these dealers..

I didn't have the same problem,
but in my case it was in financing.
i just went there and waited what he'd say about the rate.

he quoted me some outrageous rate.

i said.. my credit is good so you better give me this rate or i'll go.

dealers....

..Mark..

.

IncaPower

The money went towards the down payment. He said the the bank just wanted some money down and to cover the registration and inspection cost. I know its all B.S. I just had never heard of this happening. I always thought when they said you are approved and sign the sale and drive off your good. Thanks to everyone who responded. Next time i will just wait for the check from the credit union i just don't think i will be able to talk the dealer down if I don't have the money in hand.

mcflyguy24

Next time you buy a car don't take delivery until everythng is finalized as well. Glad that the money only went towards the down payment though.