car dealer sent loan to wrong institution and now I have a loan with the wrong bank

[glassg]

What is the name of your state (only U.S. law)? CA

Recently purchased a new car on President's day, when my credit union was closed. I had obtained pre-approval at a rate of 2.3 percent. The dealership's financial officer (the guy who tries to sell you all the warranties) told me that since my bank was closed, they would have to send my application to a different institution, just to make sure my credit was good. The day after the sale, I received an email from Capital One congratulating me on my new auto loan through them, at 2.64%. I never agreed to finance anything through them, and nowhere in the contract/long form does it specifically name the institution providing the loan. I can refinance through my credit union, but during the month that has passed (mandatory to refinance) the credit rates have gone up to 2.5%. The loan is for 35K. The dealership claims they can do nothing about the situation because they don't have the power to cancel the loan with capital one. Thoughts?

 

[Zigner]

What is the name of your state (only U.S. law)? CA

Recently purchased a new car on President's day, when my credit union was closed. I had obtained pre-approval at a rate of 2.3 percent. The dealership's financial officer (the guy who tries to sell you all the warranties) told me that since my bank was closed, they would have to send my application to a different institution, just to make sure my credit was good. The day after the sale, I received an email from Capital One congratulating me on my new auto loan through them, at 2.64%. I never agreed to finance anything through them, and nowhere in the contract/long form does it specifically name the institution providing the loan. I can refinance through my credit union, but during the month that has passed (mandatory to refinance) the credit rates have gone up to 2.5%. The loan is for 35K. The dealership claims they can do nothing about the situation because they don't have the power to cancel the loan with capital one. Thoughts?

Yep - refinance...or don't. Your choice.


Enjoy your new car


ETA: You DO realize that the difference between 2.3% and 2.64% is what we're talking about, right? $314 over a 5 year term. That works out to $62.80 per year, or $5.24 per month, or 17¢ per day (roughly).

 

[HRZ]

Dealer gave you a load of bull and you swallowed it...but I agree for 17 cents a day it's a shallow point.

Odds are dealer gets some consideration to use Capital One ....but that's not relevant to your question.

 

[PayrollHRGuy]

Did you contact your Credit Union the next day and finance the car? President's Day was a month ago, did you not think it strange that you hadn't yet signed anything?

Next time you get pre-approved for a loan from your bank as them for a letter that your check for the amount they are willing to finance is good and simply write the check when you find the car your want.