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  1. #1
    jijo2000 is offline Junior Member
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    Auto Loan Refused after Buying the Car

    What is the name of your state (only U.S. law)? FLORIDA
    Hi,
    I bought a BMW used car from a dealrship in florida. They checked my credit and approved my car loan and gave the car. I sold my old car once i got the BMW.
    After few days i got a call from the dealer stating that BMW financial rejected the car loan, so either i have to return the car or find a new bank to get the car loan.

    The dealer say's that they pre-approved the loan thinking that the loan will be approved. Is this Valid? what should i do in this case.? I don't see any clause in the financial agreement that i need to return the car if the loan is not approved. Is this a florida state law?

    They called me yesterday and said that found another bank which is ready to take my loan, but they are not talking anything about the interst rate or bank information. They say that it is not possible to talk all these information over the phone as it is privacy related issue according to the state law. I asked them what's privacy in talking about my information. They are saying somebody can tap the phone and hear which is not good for the dealer and me. SO they would like to talk directly with me.
    I'm facing all these things for the first time, let me know what i'm supposed to do in this matter. Is it ok to meet them personally?

    waiting for the response.

    regards
    Joe
  2. #2
    ecmst12 is offline Senior Member
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    If the loan wasn't approved, that means YOU HAVEN'T PAID FOR THE CAR so you don't get to keep it.

    You have to go in person because you have to sign new loan application forms.
  3. #3
    JETX is offline Senior Member
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    Quote Originally Posted by jijo2000 View Post
    I bought a BMW used car from a dealrship in florida. They checked my credit and approved my car loan and gave the car. I sold my old car once i got the BMW.
    After few days i got a call from the dealer stating that BMW financial rejected the car loan, so either i have to return the car or find a new bank to get the car loan.

    The dealer say's that they pre-approved the loan thinking that the loan will be approved. Is this Valid?
    No one can tell if it is 'real' without reviewing all the facts... but what you describe is a very common FRAUD called 'spot delivery' or 'yo-yo's'.
    "Auto fraud scams such as spot delivery or “yo-yo’s” may not be common terms, but as illegal practices, they are more common than you think. The scam usually works something like this: You pick out the car you want, sign some paperwork, and drive off the lot thinking you are the proud owner of a new vehicle. In other words, you received delivery of the vehicle “on the spot.”

    You may not have read the fine print on the contract that says delivery is conditioned upon approval of your financing package. A few days or weeks later, you get a call from the dealer, who tells you that your financing fell through and you have to renegotiate a loan at a higher rate (meaning a higher monthly payment), or that you have to make an additional down payment, usually $1,000 or more, in order to keep the car."

    [url=http://lemberglaw.com/fraud-spot.php]Spot Delivery | Auto Fraud | Yo-Yo?s | Attorney[/url]

    "Spot Delivery is when a dealership allows a consumer to drive the vehicle home off the dealer’s lot even though the sale is not consummated and complete. When a consumer seeks to finance the purchase with the aid of the dealership, the dealer most often does not get a banks acceptance while the consumer is there at the dealership, and will let the consumer take the care home while the dealer’s finance department works on financing. While in most states spot delivery is not illegal in and of itself, and can be helpful to both parties, the situation opens up opportunities for the dealer to implement various scams. For instance, once the consumer has grown accustomed to the car, perhaps proud of their new purchase and has shown it to friends and family, they would not hesitate to agree to sign a new, revised contract that has increased the payments. Also, the consumer would agree to bring more money for a down payment. Depending on how or why the dealer got the consumer to consent to come back in, certain consumer rights statutes may be violated. These are also referred to as “yo-yo” scams because the dealer sends you out and pulls you back in like a yo-yo. Most importantly, if a dealer is unable to obtain financing on the terms previously agreed upon, the consumer does not have to agree to new terms, and can elect to cancel the deal altogether. In that case, the consumer is entitled to whatever down payment or trade-in vehicle that they gave to the dealership with no amount to be withheld."
    [url=http://www.krohnandmoss.com/consumer-Fraud.aspx]Consumer Fraud Information[/url]

    Also: [url=http://www.lemonlaw.com/spotdelivery.html]Spot Delivery and Automobile Dealer Fraud[/url]

    Here is a link to the Florida agency that handles Dealer complaints:
    [url=http://www.stateofflorida.com/Portal/DesktopDefault.aspx?tabid=59]State of Florida.com - Florida Auto Dealer Complaints[/url]

    what should i do in this case.? I don't see any clause in the financial agreement that i need to return the car if the loan is not approved. Is this a florida state law?
    No.

    They called me yesterday and said that found another bank which is ready to take my loan, but they are not talking anything about the interst rate or bank information. They say that it is not possible to talk all these information over the phone as it is privacy related issue according to the state law. I asked them what's privacy in talking about my information. They are saying somebody can tap the phone and hear which is not good for the dealer and me. SO they would like to talk directly with me.
    Is it ok to meet them personally?
    They want to get you where they can hard-sell you.... on their 'turf'.

    I'm facing all these things for the first time, let me know what i'm supposed to do in this matter.
    There are several responses... depending on what YOU want to do. They range from going to them and falling for their crap... to simply saying, "Hey, no problem, I don't like it anyway, come get it.". They don't want a used car back on their lot either.
    Last edited by JETX; 05-27-2009 at 10:24 AM.
  4. #4
    ecmst12 is offline Senior Member
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    Scam or not, you still don't get to keep a car without paying for it. And people who go to those types of "dealerships" usually have piss poor credit and few other options for better financing. If you are willing to let them take the car back (and return most of your down payment) then you will be in a much stronger negotiating position then if you REALLY REALLY need a car and REALLY REALLY want to keep THIS car...then they can make you agree to anything.
  5. #5
    Zigner is offline Senior Member
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    Quote Originally Posted by ecmst12 View Post
    Scam or not, you still don't get to keep a car without paying for it. And people who go to those types of "dealerships" usually have piss poor credit and few other options for better financing. If you are willing to let them take the car back (and return most of your down payment) then you will be in a much stronger negotiating position then if you REALLY REALLY need a car and REALLY REALLY want to keep THIS car...then they can make you agree to anything.
    I've had a friend go to a reputable Chevy dealership and have the same thing happen...
  6. #6
    ecmst12 is offline Senior Member
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    Does he have bad credit?
  7. #7
    Zigner is offline Senior Member
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    Quote Originally Posted by ecmst12 View Post
    Does he have bad credit?
    At the time, he had little credit, so it's the same effect.
    I only mentioned it because I wanted to point out that it's not necessarily the type dealership...

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