So, 29 days since taking delivery, I discover they "cannot extend vehicle financing at this time"??

Discussion in 'Gen 1 Prius Plug-in 2012-2015' started by lensovet, Oct 29, 2012.

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  1. lensovet

    lensovet former BP Brigade 207

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    So, long story short: picked up my car on September 30th. Signed off on all paperwork, including a "Retail Installment Contract" for 60 payments @ $529 and 0% APR.
    Open my mail today, discover a letter dated 10/21 (with postage stamped on 10/25 and arriving in Berkeley only today) stating that "we cannot extend vehicle financing to you at this time".
    In the line saying "Dealer submitted your application to finance source(s)", neither of the two boxes (Yes/No) is checked.
    Also, CA DMV received the registration paperwork today (I know this for a fact).
    Now what? Dealer is 650+ miles away and the car has close to 1k miles on it.
     
    #1 lensovet, Oct 29, 2012
  2. eric smith

    eric smith Junior Member

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    Call your dealer, if he can not resolve the issue lawyer up.
     
    #2 eric smith, Oct 29, 2012
  3. lensovet

    lensovet former BP Brigade 207

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    What are the potential options?
     
    #3 lensovet, Oct 29, 2012
  4. lensovet

    lensovet former BP Brigade 207

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    The contract states, in part, "The Dealer has 14 days from the date the purchaser takes possession of the vehicle to obtain irrevocable acceptance of funding by a third party lender or the Dealer". Does that mean that if they don't do it in that timeframe, they are on the hook for providing the financing themselves to me directly?
     
    #4 lensovet, Oct 29, 2012
  5. John H

    John H Senior Member

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    I suspect you are going to have to return the vehicle to the dealer. I have seen some horror stories posted elsewhere, like theft charges being filed by the dealer to recover the vehicle. You probably signed an agreement that said you would return the vehicle, or pay cash, if financing wasn't able to be arranged. Expect to pay some fee for the mileage. You might be able to return it to a local Toyota dealer.

    You can also negotiate a better deal. The dealer does not want the vehicle back. See if your credit union or bank will finance you, but knock off a couple thousand from the original price.
     
    #5 John H, Oct 29, 2012
  6. lensovet

    lensovet former BP Brigade 207

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    Right, but the same agreement also says that they have to arrange the financing in 14 days. They didn't; it took them 21 days to realize this, and then another week to actually get the letter to me. Don't they have some blame in this?
     
    #6 lensovet, Oct 29, 2012
  7. lensovet

    lensovet former BP Brigade 207

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    Also, I can't imagine who's going to give me a deal better than $2000 off and 0% APR for 60 months lol
     
    #7 lensovet, Oct 29, 2012
  8. John H

    John H Senior Member

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    Maybe? You can fight the fight or maybe just get a better deal from the same dealer. If you need to go through your credit union you will probably be paying 3-5% so tell the dealer you will keep the car if he knocks off what ever you are going to have to pay your credit union in interest charges, but get approved by your credit union first. The dealer has some room to keep you in the car. He does not want it back if he can keep you in it.
     
    #8 John H, Oct 29, 2012
  9. lensovet

    lensovet former BP Brigade 207

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    The other issue is the registration mess, which is going to be a disaster since it's already been submitted. And I can probably forget about getting my stickers anytime before Thanksgiving lol.
     
    #9 lensovet, Oct 29, 2012
  10. John H

    John H Senior Member

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    the key is to move fast and make it easy for the dealer. call your credit union asap and get approved. if you think you need to get a co-signer on the credit union loan call your folks and see if that is an option before getting with the credit union. if I remember from some of your other posts you are pretty young and just getting credit established, my son ran into similar challenges.
     
    #10 John H, Oct 29, 2012
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  11. lensovet

    lensovet former BP Brigade 207

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    I'm 25. My credit score on CreditKarma reports as 760+, but when they ran it they only got 701. What really drives me nuts is that I suspected there were going to be issues with this and confirmed and reconfirmed with them multiple times that YES, the financing was going through and it was going to be the $2000 rebate AND 0% APR. I wouldn't have flown to Oregon if this was going to fall through!
     
    #11 lensovet, Oct 29, 2012
  12. John H

    John H Senior Member

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    CreditKarma gives my son a higher score as well. It's a problem. He's your age as well and is making good money just down the hwy from you. Leverage your credit union, and tell the dealer he needs to cut you a bit more discount to cover the interest charges so you can stay in the car.

    Your credit score may have been dinged as you were shopping for a car. It happens.
     
    #12 John H, Oct 29, 2012
  13. lensovet

    lensovet former BP Brigade 207

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    Yeah, it was 745 on the day of the purchase, which is still way higher.
    From the paperwork, it's not clear if they ever even submitted the paperwork to TFS or if they hadn't bothered. Would it be worthwhile to push them to actually submit? Or with a cosigner?
    Looks like the total "discount" he'd have to cut would be ~$3700 with my current CU rates.
     
    #13 lensovet, Oct 29, 2012
  14. cwerdna

    cwerdna Senior Member

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    Man, I don't have any good advice as I've never been in this situation before.

    Was this thru Toyota Financial Services? If so, can you contact them for help/advice? Can you maybe pony up some more as a down payment or prepay some of the loan so that you can still get what you thought you'd get?
     
    #14 cwerdna, Oct 29, 2012
  15. John H

    John H Senior Member

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    I would go with the CU and $3700 discount. I wouldn't put a co-signer on a TFS loan, but I would on a CU loan. The CU is going to have a 50 year relationship with you.
     
    #15 John H, Oct 29, 2012
  16. lensovet

    lensovet former BP Brigade 207

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    Actually, they already have a 10+-year relationship! heh.
    cwerdna, yes this was through TFS. I did call them today, only to find out that apparently Oregon finances through SE Toyota (what??). SE Toyota offices were already closed by the time I got to this – I will call them first thing tomorrow.
    John, thanks for the advice. What a pain in the nice person.

    (also, why do I not have permission to tag people in messages??)
     
    #16 lensovet, Oct 29, 2012
  17. John H

    John H Senior Member

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    If you have a personal contact at the CU, they might be able to work this whole deal for you. They typically have access to fleet pricing from Toyota so they may be able to just work it through. Somewhere I saw a post that Toyota was extending some agressive fleet pricing on the PiP but it may have only been on the east coast.

    Having a CU officer calling the dealer and saying "hey, we can do this" will make the dealer relax and get this off their desk and done.
     
    #17 John H, Oct 29, 2012
  18. lensovet

    lensovet former BP Brigade 207

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    Ironically enough, despite being a member since age 13 (so over 12 years), I have never set foot in one of their branches. They are in the Philly area, the accounts got opened through my mom's work, and of course now, I'm thousands of miles away.
    I will call SE Toyota tomorrow morning regardless. I feel like if they had never received even an application, I want to lean on the dealer to at least submit it before ruling it out. I can do the CU stuff in parallel.
    What's kind of ridiculous to me is that as recently as YESTERDAY, I had the finance guy send me the TFS Communications Consent and Acknowledgment form for signing. What?? WHY?
     
    #18 lensovet, Oct 29, 2012
  19. SageBrush

    SageBrush Senior Member

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    Lensovet, listen to John Hatchett. He is giving you very good advice. You will have to read your contract carefully, but I have never heard of a customer paying for miles used on a car returned because financing fell through. I think the opposite is true: the more miles on the car, the more incentive the dealer has to work out another arrangement with you. Personally, I would not go out of my way to help the dealer return the car locally, ;) and instead remind them that *another* 600 miles goes on the odo if they want the car back.

    OTOH, avoid procrastinating or keeping the car longer than is legal if the dealership cannot come to an agreement with you. You do not need that kind of trouble.

    Do NOT, I repeat DO NOT, waste your money on a lawyer in the hope that someone can be forced to give you a loan.
     
    #19 SageBrush, Oct 29, 2012
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  20. lensovet

    lensovet former BP Brigade 207

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    Also, shouldn't someone be jumping on the phone trying to contact me ASAP?
    The salesman (internet manager) who sold me the car is still completely oblivious to this. That sounds fishy.
    Is it possible that they attempted to secure financing in different places and one of them bailed but they are still trying? Or something?
     
    #20 lensovet, Oct 29, 2012
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