Edmunds Answers



  • jb_turner 01/07/10 9:36 pm PST

    You have to give the car up... you cant get a loan.

  • msjanedoe 01/07/10 9:36 pm PST

    Sorry, I didn't mean to ask if I lose the manufacturer's rebate-- I meant, do I have to pay for that $750 amount to the dealership now that the loan didn't go through?

  • msjanedoe 01/07/10 9:38 pm PST

    I can still try to secure a loan elsewhere, right?

    Also... let's say I can't secure a loan but the car value has already depreciated, does that mean that the dealership will ask that I pay fees since the value has dropped and needed to be returned?

  • Stever@Edmunds 01/07/10 9:48 pm PST

    Check out this Edmunds Answer re spot delivery.

    And yeah, there's no reason why you can't get a loan elsewhere, so long as you can qualify. I bet the dealer is trying to qualify you somewhere so they don't have to take the car back.

  • gualm 01/10/10 8:11 am PST

    My friends sister had the same thing happen to her. I believe they tried to find her other financing but when they could not they just stopped communicating with her. She then received a letter in the mail to return the car.

    I also use to date a car salesman and he told me if there are credit issues, i.e. no job, credit score, etc that most foreign automakers make it very difficult for you to finance one of their vehicles. If u must purchase a car you may need to buy a chevy or ford, etc. If you notice most people with credit issues usually have what we refer to as "American Cars".. because my ex told me they are the easiest to finance.

    Also, if you are not working why are you trying to buy a car? You will probably be better waiting till you get a job, especially with the current economy. I assume you are on unemployment or a college grad looking for your first job, I am in the same boat. I am on unemployment and have a 15 yr old car which is literally dying. But, I will take public transportation when it dies b4 trying to buy a car. My plan is once I get a job, I will wait 60-90 days then buy a car.

    Bascially, buying this car is a real bad idea and it is unfair to your friend also because if you can't make the payments then they are responsible. If they lose their job or business then you both are up the creek w/out a paddle. It is apparent that your friend is already over-extended. I can also guarantee they denied u because you don't have a job. The idea of a co-signor is to basically be a back-up if the primary can't pay. You already don't have the ability to pay (no job).

    If your just out of school you may not get the job you want and unless you are a nurse or pharmacists it make take you awhile to get a job because you are competing with a lot of unemployed people with way more experience than you. Also don't forget maintenance. You have to pay for insurance, gas, oil changes and if you damage a tire, because this is not covered under warranty.

    If u live near public transportation, I would utilize that for awhile.

  • 200_up_toooo 01/11/10 7:08 pm PST

    No, no, no, no, no.

    Listen, I sell cars. All of the answers posted here are incorrect to a certain extent. They don’t apply to your situation YET. The posters aren’t purposefully misleading you but this is a situation that will only be understood by people who are in the business.

    All that has happened is that ONE bank turned you down. A bank is required to send a customer a written decline notice and reason for the decline. Dealerships use dozens of banks. We regularly submit the same loan to multiple banks in order to get the best offered rate/approval. Say I submit the loan to five banks. Four banks decline the loan, one approves the loan. You and your cosigner would receive 4 statements of decline (refusal of credit) from the separate banks but your loan would still be intact from the approved bank.

    You aren’t affected as long as the dealership gets the loan approved from one bank.

    Before you are confused any further, Call the dealership and ask to talk to the F&I manager. Ask if they have an approval for your loan. There’s a chance that everything is fine and your deal is approved. If they don’t have an approval, ask them if they expect to get one, will the rate be higher? Will the loan require more money down? Ask the specifics of the approval.

    Don’t get me wrong, things could get tricky and annoying for you if you have in fact been declined by ALL of the banks. But the letter you received doesn’t mean that this happened. You could very well be 100% fine and your deal already funded (original contract that you signed is approved). You shouldn’t get all worked up until you know what’s going on. Call the Dealer, demand to know what’s going on. It’s against the law for us to lie about things like this.

    I hope this helps. Good luck

    If they in fact couldn’t get financing, then post here so that we can advise you on the best ways to proceed (get your own financing, return the vehicle, etc.)

  • tomsgirl070400 01/15/16 11:38 pm PST

    this is really funny because i just went to toyota on jan 9th 2016 traded in a car for a 2016 camary signed all papers had a lender on my loan etc and then 5 days later i was called and said they couldnt approve my loan and told me to bring the car back and gave me my trade in back.so something really seems fishy with toyota

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