Denied due to LTV too high = Dealer is gouging you and making a larger than needed profit margin. Essentially taking advantage of you.
Give it back.
Give it back.
HELP! The car loan was denied after I already bought the car!?
- Thread starter dogememe
- Start date
Agree with most in here, keep it simple. The dealer couldn't get you the loan, go in with the attitude that you have to return the car unless they adjust the price to the point that the bank will make the loan.
As disappointing as it is, keep it simple and this is as simple as it gets.
It's pointless to let them get you into a conversation other than are they going to reduce the price so you can get the loan.
As disappointing as it is, keep it simple and this is as simple as it gets.
It's pointless to let them get you into a conversation other than are they going to reduce the price so you can get the loan.
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Never a good idea to spend your last dime on a used car. What if it needs even a moderate priced repair, $800-$1200? Are you on temporary tags or has it already been registered at the DMV? If anyone calls, I would say I was on vacation in Mexico and can return it in 3 weeks, just before the first payment is due.
Have them come and get the car and go out there and find another one. I get tired of being manipulated by these "gotcha" scenarios. There is so much greed out there in today's world and many companies will take advantage of you. This is just another example of paying much more than you were supposed to in the beginning. I always thought car dealers had all the paperwork complete before they let you take the car you purchased.
Borrowing money on a used car?
Walk away.
Walk away.
OP already added this car to his signature, looks like the yo yo worked like a charm.
I think the chance of returning this car are small at this point.
I think the chance of returning this car are small at this point.
If I understand this, this latest deal involves you trading in a car that was owned outright (the Leaf), so there should not be much issue with loan to value.
The letter is a big warning sign. Do not go farther down this rabbit hole it will lead to worse things. Bring it back to the dealer and be firm that they are charging too much. Tell them you are not adding more money or doing creative financing, They will have to lower the price to make it work and you do not need the car. Buying a vehicle with no money down is a warning sign. Do not make your cash situation worse by spending more.
They aren't charging "too much" - the OP agreed to the price so that price was fine to him.
Agree with this ! Never get emotional about a material object.
You traded an Escape for a Leaf and traded the Leaf for a Volt. What timeframe was that from start to finish? As others have said, make calls and start with your credit union to find financing on your own. If you are unable to find any financing then some combination of your other debt, salary, credit score, work history and possibly other factors are working against you. You may need to find a semi-beater you can drive for a year or three while you save money to add into down payment and do everything possible to improve your credit score. Good luck sorting it out.
I didn't see it mentioned - but suggest making it clear to the dealer that you are not made whole until they return your trade in.
If they already sold the vehicle, this could make it a table pounding negotiation. Steve Lehto has a youtube video on this. State law varies on rejection of financing is handled.
What is the proper “needed” profit margin?
If you want to keep the car, I would start with calling the credit union and determine what numbers work. Then go to the dealership and offer them the price that works for oyu and your CU. If the numbers are close, it should work. The dealership wants to make a sale.
Remember, you can't negotiate if you can't walk away. Or at least make them think you can walk....
Good luck.
Remember, you can't negotiate if you can't walk away. Or at least make them think you can walk....
Good luck.
Gap insurance ?! Whats the FMV ( Galves Black ) of what you are buying and how much is the loan?
Sounds like the dealer slathered on a bit too much gravy in the finance room.
Get this settled pronto before your Leaf goes to auction! I mean TODAY!
Now think about all those insane dealer markups on new cars we discussed here in 2021, such as a $40,000 Toyota having a dealer markup sticker making the selling price double that and a new Bronco going for nearly $100K. How many banks did the same thing to buyers who wanted to borrow the inflated dealer price?
Good advice except they have his valuable trade. If things start going south call the State Attorney general office.
In front of the sales manager.
Surprised they let him drive off without the loan nod.
Wait a minute...
It is your credit union? Talk to them...
It is your credit union? Talk to them...
This. Wouldn’t trust the number on the letter they sent you though if you call unless it matches what’s on their website.
