+1

 

[QUOTE=St Louis Lightning]The dealer didn't agree to a "rate" they agreed to financing... they simply couldn't sell his loan, period,He has ****ty credit , this is how they make money.

Do you really think they wanted to steal his stereo and let him drive a cobra....BS.... this guys full of ****...He has ****ty credit and they can't find anyone to buy his loan.... Hell, This forum is full of east coast boyz..... they will explain how it works.

 

Hes only 21, probably doesnt have much of a credit history.


Its not illegal to asses risk because of age. Insurance companies and banks do it all the time.


Thats why a 16 year olds liability only insurance on an old scrap heap costs more then a 30 year olds full coverage on a new car. They know the 16 year old is far more likely to crash.


A 70 year old cant get a 30 year mortgage loan at 120% of its apraised value. They know he will drop dead long before he builds any equity in the house.


Hell, They can even charge more depending on your race and gender.

 

Which makes you wonder how he has a 720 with such a short history with no long term lines.

 

I've bought alot of vehicles personal/family/company and yet to drop of a trade and pick up before the deal was ready to sign, period. Isn't it make deal/ secure financing / drop off trade/ inspect new / sign / take delivery in that order. It seem to me this is one big cluster *******, so who covering the title swap/reregistration or how about the insurance BS? Not for anything but if a dealer called me back two week's later and said there was a financing issue, my next call would be to an attorney, you signed a contact, correct?

 

It happened to me once. My first new car buying experience.

$-days after the deal they called back and said they needed it back.

They gave me some excuse about the loan not being approved, But they found some one who would do it if I paid an extra $50 a month.


I think it was just a " give it to him for a week and he will fall in love with it" con.


I gave them the truck back. As I walked out, they seemed real eager to talk about it.....


I was like pfpfpfshhh I dont even care any more, Now where in the hell is my rust bucket.


I make it a point to have them get the loan approved now.

 

One more possibility. What were the dollar amounts in question? If he was upside down on his lightning, say something like $4000 or so in the red on trade in, and the dealership tried to get the loan approved by showing the Cobra was worth 40% or so more than is the going rate to cover the negative equity, this would hose up the financing. I don't care what your credit rating or history is. Ultimately the bank decides rather or not to approve the loan based on the risk ratio of amount financed vs what the car is actually worth...typically at auction. Now, as to rather or not the dealership should have sent him home with the car before credit approval is another issue entirely. Sounds dirty to me. Whoever said something about getting a lawyer involved was right in my opinion.

Mike