Wow. With that said, as others have stated, something is wrong with this deal. Think it is time to look at another car at another dealer.
HELP! The car loan was denied after I already bought the car!?
- Thread starter dogememe
- Start date
Any updates?
In simple terms it means the bank feels the car isn't worth the price you paid for it, a rip off deal!!!!! W/O any money down the bank feels if they have to repo it, they're going to lose a lot of money trying to sell it. Odds are the dealer is going to try to convince you to put money down. I'd tell them to keep the car, especially if you put no money down. Or they can negotiate with the bank a price the bank is willing to lend money on. Either way you win! After the recent bank meltdown I expect more of this to happen, especially with people with less than stellar credit scores. OP that is a general statement and not targeted at you.
It is hard when you’re starting out. The first car I bought was a year old, 18,000 mile example, saving me about 30% off new.
That kept my monthly down to where I could afford it, but I had to finance the whole thing. I went through my bank, and walked into the purchase (I had driven the car already, knew I wanted that one) with financing in hand.
Check was accepted (i still have that check somewhere) and I had my car.
As a parent, I have given each of my kids two important things:
1. A college education, paid for. No debt on their part.
2. A car. Not a new car, not expensive.
But a good car. For example, when my oldest was in her second year in medical school, she got my 14 year old, rust free, well cared for Volvo wagon.
Now, 6+ years later, as a young doctor, with a resident salary (not much) she is still driving that car. She is free from the trap of excess debt. She’s not on the borrow/spend treadmill. She has savings. She could handle 50% cash on a nice new car, or pay cash for a good used one.
My middle got his car as a college graduation present. Four years ago. An 18 year old Volvo wagon, with 75,000 miles on it. I had gone through the car, rebuilding suspension, brakes, and doing the timing belt, etc. to ensure it was solid and reliable. He’s still driving it, with a bit over 130,000 miles on it now. He’s like his sister, has a cushion, makes investments, and isn’t caught in the debt trap.
Now, my youngest is about to start Med school.
Guess what is in the works for her?
My oldest daughter‘s Volvo before I drove it out to Med School.
My son‘s Volvo before I drove it up to graduation.
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I have done the same. One thing you gave that you didn't mention - leadership, and leading by example.
I have never asked anything of my children that I wouldn't do myself. They understand that a car is a tool, not a means of expression. They understand marginal utility, and the value of an "older" car versus brand new (lower total cost of ownership, lower taxes, lower insurance cost, etc.).
They have been taught to appreciate a dollar, but never forget safety or safety features when buying a car.
OP is learning these things, and making good progress.
Congratulations on your new car dogememe!
Same - had USAA forever. Insurance rates for the cars went up a straight 15% last go around. I called and spoke with them but of course it is what it is/inflation - Progressive is so much cheaper it's almost not real BUT the service is good in my experience and I never worry about my insurance products not doing what I need them do to IF I need them. I've not had many claims over the years but they've always been handled well. We use them for our day to day banking (checking etc.) and it's fine/no different for me than Navy Fed etc. I always got my loans from Navy Fed and the last time I applied for an auto loan USAA wouldn't give me the lowest rate so I said no thanks/went with Navy Fed. My dad (Navy) always told me to keep USAA as it was such a benefit but anymore I'm not seeing it as much.
USAA was once a great deal because it had an exclusive customer base - military officers. Officers. Not anyone else.
They wanted to expand and allowed all members of the military in. Before anyone who was enlisted gets their underwear in a twist, think of the dumbest guys you worked with, and realize that they are now part of USAA.
Their claims rates exploded. My insurance rates doubled in two years - doubled - because my area has a lot of young sailors and young sailors do dumb things, often in expensive new cars. So, despite having no accidents or claims myself, I was carrying the risk for the young and foolish who were now part of the risk pool.
So, now USAA is the same as anyone else. They insure anyone. They spend a lot on advertising. They have no advantage in any way over other carriers.
They wanted to expand and allowed all members of the military in. Before anyone who was enlisted gets their underwear in a twist, think of the dumbest guys you worked with, and realize that they are now part of USAA.
Their claims rates exploded. My insurance rates doubled in two years - doubled - because my area has a lot of young sailors and young sailors do dumb things, often in expensive new cars. So, despite having no accidents or claims myself, I was carrying the risk for the young and foolish who were now part of the risk pool.
So, now USAA is the same as anyone else. They insure anyone. They spend a lot on advertising. They have no advantage in any way over other carriers.
Astro14 is 100% correct; USAA didn't only dilute the risk pool...they flooded it almost uncontrollably. And throngs of military folks still march to them in an almost trance-like state, "USAA = for military = the best deal." Credit cards, mortgages, car loans, insurance...most of my peers don't even shop; rather, they blindly follow.
Here in Corpus Christi USAA's car insurance rates are double Progressive's. I've shed all but one account with them. Good riddance.
Here in Corpus Christi USAA's car insurance rates are double Progressive's. I've shed all but one account with them. Good riddance.
This.
I had forgotten about this - yes, my dad was an officer and a Naval Aviator and that's how I ended up with it. The auto insurance rates are beyond what I can comprehend for my 4 driver/2 teenager/5 car family. Progressive is almost half of it BUT you have to 1) pay a year lump sum AND have your homeowner's insurance with them. Plus, I'm skeptical of the service I will get and how they will react to an accident, ticket, etc. A bit of what you say...comfort with USAA and history keeps me with them but I question it regularly. I almost spit out my cofee when I saw the 15% increase for no-reason and they just said "inflation". It's what you say, their pool is MUCH riskier now with all the enlisted kids and their 20% APR Dodge Hellcats.
Another good thing to give, a copy of The Total Money Makeover. Those Volvo's are great looking cars, especially that red one. Which is the red one?
If the financing is "approved", you will drive the vehicle home. More than a few people in this thread have mentioned that the buyer will need to sign a form saying "if the bank changes their mind, you'll return the vehicle". I had to do that myself ~10 years ago (when I used the dealer's financing) and our son had to as well ~1 year ago. It's completely normal and I'm sure in the majority of cases, it's a non-issue. The lender finalizes everything and the loan is 100% processed. If too many loans were denied, car dealers wouldn't let people take the vehicle until it was fully processed.
It's all sorted and the OP has safe possession of the car
The red one is the 2002 V70T5. Shown December 2016.
I bought it used in 2007 with about 70,000 on it. It was $12,500 I think.
It was my daily driver for years.
It’s a great car. 247 HP turbo 5. Upgraded brakes, increased HP and stiffer suspension over the regular model.
She really likes her car. It leads a hard life, though. Short tripped to the hospital a lot, at all hours.
Point is: it’s a good car. Reliable. Safe. Durable. Paid for.
Just what a young person needs starting out.
The fact that it’s fun to drive is icing on the cake.
If anyone else had posted this, there would be people saying how spoiled your kids are, how they won't "learn" anything, and so on.
We've done similar for our kids, or at least as best we can, and I have no qualms about it.
Yeah - we can discuss parenting style. Parental responsibility. Entitlement. All germane.
But none of my kids ever expected anything. They’re not entitled.
So, a 14 year old Volvo with 185,000 on it, at the time she got the car, was received by her as a wonderful gift. An entitled kid would’ve turned their nose up at the nerdy old wagon.
What was actually taking place - Dad helping out.
Dad teaching by example.
She (and her brother) have learned that I drove and cared for used cars. How to avoid debt. How to distinguish between need and want.
But none of my kids ever expected anything. They’re not entitled.
So, a 14 year old Volvo with 185,000 on it, at the time she got the car, was received by her as a wonderful gift. An entitled kid would’ve turned their nose up at the nerdy old wagon.
What was actually taking place - Dad helping out.
Dad teaching by example.
She (and her brother) have learned that I drove and cared for used cars. How to avoid debt. How to distinguish between need and want.
Not to thread hijack, but the silver one had under 75,000 in that photo.
Same T5 model but with a couple more upgrades. Downpipe. Cat back exhaust. BBS-made OEM Volvo wheels.
Again, seen by him as a great gift.
I had gone through the car, replacing the entire cooling system, timing belt, a number of engine parts, engine mounts, brakes, some electrical work, and suspension. It was practically perfect when he got it.
I wonder to what degree the hundreds of hours I put into the car added to the perception of value.
I shared all the Google photos of the work, not to mention receipts.
He loves his car.
Same T5 model but with a couple more upgrades. Downpipe. Cat back exhaust. BBS-made OEM Volvo wheels.
Again, seen by him as a great gift.
I had gone through the car, replacing the entire cooling system, timing belt, a number of engine parts, engine mounts, brakes, some electrical work, and suspension. It was practically perfect when he got it.
I wonder to what degree the hundreds of hours I put into the car added to the perception of value.
I shared all the Google photos of the work, not to mention receipts.
He loves his car.
I agree. People need to mind their own business. And keep things zipped....
Our son "got" my '99 Accord with 230k miles on it and didn't complain. He did buy his own (used) car ~2 years later and put 1/2 down on it. It helped a lot, I suspect, because he had literally NO credit. Not bad credit, no credit - he had a low limit credit card that he used for ~6 months to start building his credit. I went with him to co-sign but he asked "let me try by myself" and got approved.
That same car got handed down to our daughter who drove it for over a year. She never complained about it. We did buy a '12 Civic for her (and "officially" it will go to her younger sister when the time comes) as the Accord was rusting away (brake lines rusted through when I had it and the fuel lines rusted through when she had it).
Astro, have you ever considered a Volvo? Kidding, of course.
Wow, well done. I will take a lesson on your smart generosity.
