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#979 of 1023 Re: Credit denied after taken possession [timmy15]
by Mr_Shiftright HOST
Aug 24, 2011 (8:53 pm)
No you have no recourse because when you read your contract you will see that it says "subject to approval by the lending institution' or something like that.
And yes you have to bring the car back (in most cases). The best resolution would be to return the car (your part) and the dealer not to charge you for use (their part). If one or the other digs their heels in, then it becomes a legal issue and you'll have to bear that expense.
You can claim that they "promised" you financing and that this constitutes a contract, but I kinda doubt any court would really enforce that type of argument unless you had it in writing, or saw such a guarantee in an ad (e.g. "we never turn down anyone for financing" )
But even THAT is a loophole, because they'll get you financing all right, just not at the previously agreed rate.
Also I have to say I agree with the other poster, something about this story doesn't quite add up. Have you forgotten something?
#980 of 1023 Balloom financing
Aug 25, 2011 (7:20 am)
I figured that I'd ask about this here. The deal I'm loking at is for a 2011 Town & Country Touring. MSRP is over $29,000, and then there's a $2,000 manufacturer rebate and then if financed with a specific bank they will offer $4,000 more rebates, but there is a $3,500 balloon payment at the end of a 72 month loan. The dealership keeps assuring me that I can just refinance the loan with my credit union without any penalties and they have also told me this can be done at anytime. Anyone have any experience with this? With the dealers pricing, rebates and my trade I'm looking at financing $21,446.
I don't want a balloon payment, which is why I would refinance -rate on balloon loan is 7.18% and rate with my credit union would be 3.25% (already pre-approved). Advise, thoughts?
#981 of 1023 Re: Balloom financing [megros]
Aug 25, 2011 (7:25 am)
My thought is if you have to finance $21k for 72 mos and still have a balloon payment at the end, then you can't afford this vehicle.
#982 of 1023 Re: Balloom financing [qbrozen]
Aug 25, 2011 (7:55 am)
I would refinance to get rid of the balloon payment. I'm under the impression that the balloon payment will be paid off at the moment of refinancing.
I would refinance for 60 months -not 72 like the initial financing has.
#983 of 1023 Re: Balloom financing [megros]
Aug 25, 2011 (7:43 am)
So did you already take the dealership financing? I'm confused. Why would you even agree to it when you could have taken a shorter loan term?
Whether or not you can get out of it is completely up to the bank doing the original financing. If they have a prepayment penalty, then you are stuck. If no prepayment penalty then, yes, you can refinance at any time.
#984 of 1023 Re: Balloom financing [qbrozen]
Aug 25, 2011 (7:58 am)
No, I have not taken the financing through the dealership -I would only do that to get the additional $4,000 in rebates. I had just never heard of the balloon payment thing, so it's a bit foreign to me.
Basically if I don't do the financing at the dealership I loose $4,000 in rebates. The reason I would do the refinance is that the rate through the dealership is horrendous and I wouldn't want a balloon payment.
#985 of 1023 Re: Balloom financing [megros]
Aug 25, 2011 (9:20 am)
well, ask about prepayment penalties and make sure it is stated in the contract somewhere. Maybe even just call the bank in question. I'd also question why the loan needs to be structured that way. Shouldn't the rebates still apply to a non-balloon finance? And, if not, then that would indicate to me prepayment of this special loan would be a problem.
#986 of 1023 Re: Credit denied after taken possession [ksccts]
Aug 25, 2011 (1:03 pm)
I agree it doesn't make sense. And, no one will say why. Nissan Motor Acceptance Corp says they will send a letter, but cannot say anything over the phone. That's why it is so frustrating. The dealer is just being a jerk. I think there was something placed wrong in the application/communication between the dealer and NMAC, but no one will discuss it. I could easily get a loan, but the 0% interest is why I purchased the car from them.
#987 of 1023 Re: Credit denied after taken possession [timmy15]
Aug 29, 2011 (7:34 am)
An update to my post. Instead of paying the dealer for wear and tear on the car, I decided to just pay it off. So, I brought in a check for the entire balance and that was it. Now, at this time, I still did not know why my loan was not approved, despite having an 822 credit score, a good job, and no debt. I FINALLY received the letter from Nissan Motor Acceptance Corp explaining why my loan was not approved. It said my debt ratio was too high and my credit score was too low. I brought the letter to the dealer, who contact NMAC and after some discussion it was discovered there was an error in the paper work. The dealer blamed NMAC and I'm sure NMAC blamed the dealer. I think the whole thing was a scam for them to get out of the 0% financing. Be careful out there.
#988 of 1023 Re: Credit denied after taken possession [timmy15]
by Mr_Shiftright HOST
Aug 29, 2011 (10:45 am)
So they wanted an 840 instead of an 822? LOL!