There is a co signer involved which may slightly offset the bad credit score depending on the co signer's credit score. Anyway looks like a mess.
I've become a victim of Spot Delivery Scam.
- Thread starter SkyActivG
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To the OP. Take a close look at the paperwork you signed and locate all the terms - interest rate, payment amount, length of the loan, and most importantly who the finance contract is with. In some cases, the contract will say that the dealer and the buyer agree to finance terms and that the dealer can then assign the loan to another lender.
If they can't find a bank to take your loan, then they'll try to get you to agree to other terms. You've already agreed to one set of terms. Make your payments to the dealer (or whoever the finance contract says agrees to the terms).
Steve Lehto, a consumer lawyer in Michigan, has an interesting write-up where a dealer did this, and then stole the car back when the buyer wouldn't agree to new terms. http://lehtoslaw.com/dealership-steals-back-car-just-sold/
If your seller goes that far, call the cops and lawyer up.
If they can't find a bank to take your loan, then they'll try to get you to agree to other terms. You've already agreed to one set of terms. Make your payments to the dealer (or whoever the finance contract says agrees to the terms).
Steve Lehto, a consumer lawyer in Michigan, has an interesting write-up where a dealer did this, and then stole the car back when the buyer wouldn't agree to new terms. http://lehtoslaw.com/dealership-steals-back-car-just-sold/
If your seller goes that far, call the cops and lawyer up.
Originally Posted By: itguy08
Originally Posted By: SkyActivG
I can have this dealership take the car back and take a serious loss.
That is your answer right there. Return the car. There are other dealerships and better cars than a Honda.
This make is irrelevant to dealer practices. That is dealer or auto group specific what goes down. In our state a dealer conglomerate who practices this stuff has: vw, ford, Hyundai, Kia, Nissan and Honda in various locations. How do I know? My brother in law (20 yr auto sales and financing career) works there in training and financing.
Originally Posted By: SkyActivG
I can have this dealership take the car back and take a serious loss.
That is your answer right there. Return the car. There are other dealerships and better cars than a Honda.
This make is irrelevant to dealer practices. That is dealer or auto group specific what goes down. In our state a dealer conglomerate who practices this stuff has: vw, ford, Hyundai, Kia, Nissan and Honda in various locations. How do I know? My brother in law (20 yr auto sales and financing career) works there in training and financing.
Originally Posted By: SkyActivG
I've become a victim of Spot Delivery Scam.
You have become the victim of your own bad credit.
anything under 600 is buy here pay here territory.
Originally Posted By: Olas
It's unfortunate that this happened to you, and should remind you to stay away from that dealer in the future.
Also, only ever pay cash for a car. Paying interest is a mugs game.
Right because everyone in the world has 20000$ or more just sitting in a savings account?
My car loan is 2.31%
I've become a victim of Spot Delivery Scam.
You have become the victim of your own bad credit.
anything under 600 is buy here pay here territory.
Originally Posted By: Olas
It's unfortunate that this happened to you, and should remind you to stay away from that dealer in the future.
Also, only ever pay cash for a car. Paying interest is a mugs game.
Right because everyone in the world has 20000$ or more just sitting in a savings account?
My car loan is 2.31%
Originally Posted By: madRiver
If you did not sign anything for payments, interest or term (loan note) and clearly have bad credit you are mercy of bank and what dealer can provide.
A brand new accord at 10% interest because you have bad credit seems like an expensive choice that will not help you get out of bad credit.
It gets you admitted to the "Order of the Sparcone" around these parts.
If you did not sign anything for payments, interest or term (loan note) and clearly have bad credit you are mercy of bank and what dealer can provide.
A brand new accord at 10% interest because you have bad credit seems like an expensive choice that will not help you get out of bad credit.
It gets you admitted to the "Order of the Sparcone" around these parts.
Sorry to hear about that. I work on the financial side for two veh manufacturers and with that credit score, you may have gotten financed at around 16-17%, def not 10%, but I'm not sure of hondas business practices.
As to the comment about paying cash for a car. People who do that put themselves in financial jeopardy. If they pay $25k for a new car and its totalled after say 1 year. The car may have dropped down to say $17k and ins only pays the $17k. While if you were financing it you may have had a balance on it for $22k. Assuming u have GAP then you are covered. In this event id rather finance it, be out only the $3k in payments, plus downpayment if there was one, instead of the cash purchase price minus the ACV which in this example is $8k. Just something to think about that I unfortunately see everyday, ins comps see this all the time too when it comes to payout on a vehicle. Sadly, but buying a new car either in cash or financing is a huge risk that not many fully think it thru. Thats why on contracts you will see a "no cooling off period".
As to the comment about paying cash for a car. People who do that put themselves in financial jeopardy. If they pay $25k for a new car and its totalled after say 1 year. The car may have dropped down to say $17k and ins only pays the $17k. While if you were financing it you may have had a balance on it for $22k. Assuming u have GAP then you are covered. In this event id rather finance it, be out only the $3k in payments, plus downpayment if there was one, instead of the cash purchase price minus the ACV which in this example is $8k. Just something to think about that I unfortunately see everyday, ins comps see this all the time too when it comes to payout on a vehicle. Sadly, but buying a new car either in cash or financing is a huge risk that not many fully think it thru. Thats why on contracts you will see a "no cooling off period".
Originally Posted By: madRiver
This make is irrelevant to dealer practices. That is dealer or auto group specific what goes down. In our state a dealer conglomerate who practices this stuff has: vw, ford, Hyundai, Kia, Nissan and Honda in various locations. How do I know? My brother in law (20 yr auto sales and financing career) works there in training and financing.
Right. Not sure if it's like this in the OP's market (MD is quite large from Baltimore to Western MD) but here with certain makes they are all owned by the same conglomerate. Want a Subaru? Both of the area dealers are owned by the same people. Want a Honda it's 1 of 2 conglomerates, etc.
So if it's the only Honda dealer in the area or if they are owned by the same people the only get the message across is to shop somewhere else.
This make is irrelevant to dealer practices. That is dealer or auto group specific what goes down. In our state a dealer conglomerate who practices this stuff has: vw, ford, Hyundai, Kia, Nissan and Honda in various locations. How do I know? My brother in law (20 yr auto sales and financing career) works there in training and financing.
Right. Not sure if it's like this in the OP's market (MD is quite large from Baltimore to Western MD) but here with certain makes they are all owned by the same conglomerate. Want a Subaru? Both of the area dealers are owned by the same people. Want a Honda it's 1 of 2 conglomerates, etc.
So if it's the only Honda dealer in the area or if they are owned by the same people the only get the message across is to shop somewhere else.
Originally Posted By: SkyActivG
The sales manager pulled my credit which was 574, but due to my good standing with Honda Financial, they were supposedly able to get me approved with 2k down at 10%. I drove off the lot that evening in a new car.
If you were smart, you would listen to what I'm about to say. Fix your credit, pay your debts, and STOP BUYING BRAND NEW CARS THAT YOU CAN'T AFFORD. I don't care if you make a million dollars a year, if you are buying a depreciating asset at 10% interest rate, you can't afford that car. What's the loan term they gave you, 6, 7, or 8 years?
If you need a car, than a used car $5k to $8k that you buy cash or mostly cash is what you need to be looking at.
If you can give them the car back, I would absolutely do that right now, even if you lose your down payment.
The sales manager pulled my credit which was 574, but due to my good standing with Honda Financial, they were supposedly able to get me approved with 2k down at 10%. I drove off the lot that evening in a new car.
If you were smart, you would listen to what I'm about to say. Fix your credit, pay your debts, and STOP BUYING BRAND NEW CARS THAT YOU CAN'T AFFORD. I don't care if you make a million dollars a year, if you are buying a depreciating asset at 10% interest rate, you can't afford that car. What's the loan term they gave you, 6, 7, or 8 years?
If you need a car, than a used car $5k to $8k that you buy cash or mostly cash is what you need to be looking at.
If you can give them the car back, I would absolutely do that right now, even if you lose your down payment.
Originally Posted By: SkyActivG
My Story....
On 12/29/2015 I went to a Honda dealership to purchase a 2016 Accord. The sales manager pulled my credit which was 574, but due to my good standing with Honda Financial, they were supposedly able to get me approved with 2k down at 10%. I drove off the lot that evening in a new car. I just needed to come back with the trade title signed by the co owner which was my grandfather and an additional 1k. I met with a different business manager and she talked about a credit freeze on Experian. I told her yes I have one, but the other two CBs aren't frozen. She then mentioned that she was working with another bank. I'm not sure what she meant by another bank. This whole deal sounds troubling to say the least. The dealership had the 30th and possibly the 31st of December to get the financing situated. I'm not sure what to think at this point. Should I call Honda Financial tomorrow to see what exactly is going on instead of going back to the dealership? I didn't mention the additional 1k because the business manager was a different one. Please Please everyone watch out for Spot Delivery Scams. This is the first time that I've encountered such horrid unprofessional dealership practices. I've already notified the Better Business Bureau and next will be the Attorney General and FTC. I'm not to be toyed with in regard to scams. I can have this dealership take the car back and take a serious loss.
The bigger scam is you signing off on a car loan at 10% interest
My Story....
On 12/29/2015 I went to a Honda dealership to purchase a 2016 Accord. The sales manager pulled my credit which was 574, but due to my good standing with Honda Financial, they were supposedly able to get me approved with 2k down at 10%. I drove off the lot that evening in a new car. I just needed to come back with the trade title signed by the co owner which was my grandfather and an additional 1k. I met with a different business manager and she talked about a credit freeze on Experian. I told her yes I have one, but the other two CBs aren't frozen. She then mentioned that she was working with another bank. I'm not sure what she meant by another bank. This whole deal sounds troubling to say the least. The dealership had the 30th and possibly the 31st of December to get the financing situated. I'm not sure what to think at this point. Should I call Honda Financial tomorrow to see what exactly is going on instead of going back to the dealership? I didn't mention the additional 1k because the business manager was a different one. Please Please everyone watch out for Spot Delivery Scams. This is the first time that I've encountered such horrid unprofessional dealership practices. I've already notified the Better Business Bureau and next will be the Attorney General and FTC. I'm not to be toyed with in regard to scams. I can have this dealership take the car back and take a serious loss.
The bigger scam is you signing off on a car loan at 10% interest
Looks like he said there is a co-owner on the trade, not a co-signer on the new Accord?
What is the trade exactly?
Credit freeze (as in security freeze) just lift it for the dealer... (is the 575 real or were you a victim of some sort of fraud, and if so why are the other two not frozen as well?)
What is the trade exactly?
Credit freeze (as in security freeze) just lift it for the dealer... (is the 575 real or were you a victim of some sort of fraud, and if so why are the other two not frozen as well?)
Originally Posted By: itguy08
Originally Posted By: SkyActivG
I can have this dealership take the car back and take a serious loss.
That is your answer right there. Return the car. There are other dealerships and better cars than a Honda.
Would you be willing to enlighten us with which cars are better than Hondas, price considering? All cars have strengths and weaknesses.
Originally Posted By: SkyActivG
I can have this dealership take the car back and take a serious loss.
That is your answer right there. Return the car. There are other dealerships and better cars than a Honda.
Would you be willing to enlighten us with which cars are better than Hondas, price considering? All cars have strengths and weaknesses.
Originally Posted By: Rand
Right because everyone in the world has 20000$ or more just sitting in a savings account?
Not everyone. But many do. I've sold many homes, several were over $500k and people paid cash. On other homes I've sold, people at least had a good down payment which was typically at least 50-100k if not more. A 574 is basically deadbeat territory, I don't even bother renting apartments to people with a score under 600.
Right because everyone in the world has 20000$ or more just sitting in a savings account?
Not everyone. But many do. I've sold many homes, several were over $500k and people paid cash. On other homes I've sold, people at least had a good down payment which was typically at least 50-100k if not more. A 574 is basically deadbeat territory, I don't even bother renting apartments to people with a score under 600.
Originally Posted By: stevejones
Holy smokes...someone who presumably doesn't pay their debts complaining about how they're treated by a creditor. Lots of irony/karma is all I read.
BTW, I love & expect Spot Delivery - it's how I roll.
You sound extremely pretentious. The reason for my low credit score is due to the financial crisis that occurred in 2007/2008. I don't think anyone went unscathed from the financial crisis.
Holy smokes...someone who presumably doesn't pay their debts complaining about how they're treated by a creditor. Lots of irony/karma is all I read.
BTW, I love & expect Spot Delivery - it's how I roll.
You sound extremely pretentious. The reason for my low credit score is due to the financial crisis that occurred in 2007/2008. I don't think anyone went unscathed from the financial crisis.
The whole issue with this deal is that the dealership is trying to hold the sale together. I took delivery on 12/29 around 8pm which albeit maybe well past the end of business for Honda Financial, but they had the 30th to do it and possibly the 31st even though the banks may be short staffed in the underwriting department. We're well into January and as of today I haven't heard a word from the Honda Dealership in regard to the deal being done. I'm going to give them until Tuesday to get the deal finalized. Anyone with a job and previous auto loans that are in good standing should have no problem getting financing done. Another thing that seems odd if that my deal is floating around between the Honda F&I person to the Kia F&I person. This dealership sells both Honda and Kia. I left a message on the F&I Voicemail telling him to unwind the deal since you can't seem to get the financing done. I've already fired off complaints to the Better Business Bureau and WANADA, next will be FTC and the Attorney General. http://www.wanada.org/view_article.html?ArticleID=5727&SearchText=spot delivery&match=
Originally Posted By: ThirdeYe
Originally Posted By: itguy08
Originally Posted By: SkyActivG
I can have this dealership take the car back and take a serious loss.
That is your answer right there. Return the car. There are other dealerships and better cars than a Honda.
Would you be willing to enlighten us with which cars are better than Hondas, price considering? All cars have strengths and weaknesses.
+1 please enlighten everyone what's better than a Honda? A Toyota? I consider both equal to each other.
Originally Posted By: itguy08
Originally Posted By: SkyActivG
I can have this dealership take the car back and take a serious loss.
That is your answer right there. Return the car. There are other dealerships and better cars than a Honda.
Would you be willing to enlighten us with which cars are better than Hondas, price considering? All cars have strengths and weaknesses.
+1 please enlighten everyone what's better than a Honda? A Toyota? I consider both equal to each other.
Originally Posted By: stevejones
Holy smokes...someone who presumably doesn't pay their debts complaining about how they're treated by a creditor. Lots of irony/karma is all I read.
BTW, I love & expect Spot Delivery - it's how I roll.
It's how you roll? Well expect that your stealership and LieNance department to be shut down. There's plenty of stories about stealerships being shut down because of Spot Delivery Fraud and Yo-Yo financing Scams. The FTC looks at it as crooked and the FTC is no entity that you want to mingle with.
Holy smokes...someone who presumably doesn't pay their debts complaining about how they're treated by a creditor. Lots of irony/karma is all I read.
BTW, I love & expect Spot Delivery - it's how I roll.
It's how you roll? Well expect that your stealership and LieNance department to be shut down. There's plenty of stories about stealerships being shut down because of Spot Delivery Fraud and Yo-Yo financing Scams. The FTC looks at it as crooked and the FTC is no entity that you want to mingle with.
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Originally Posted By: madRiver
If you did not sign anything for payments, interest or term (loan note) and clearly have bad credit you are mercy of bank and what dealer can provide.
A brand new accord at 10% interest because you have bad credit seems like an expensive choice that will not help you get out of bad credit.
A Honda Financial contract with the loan term, the APR and payment was created in the LieNance office, then on Monday Honda Financial called me to verify some information on my credit reports.
If you did not sign anything for payments, interest or term (loan note) and clearly have bad credit you are mercy of bank and what dealer can provide.
A brand new accord at 10% interest because you have bad credit seems like an expensive choice that will not help you get out of bad credit.
A Honda Financial contract with the loan term, the APR and payment was created in the LieNance office, then on Monday Honda Financial called me to verify some information on my credit reports.
You really didn't get scammed, your just run your finances like Greece. So go educate yourself a bit Mr 574 Fico or you will continue to struggle in life.
Car dealers love people like you because you only care about two things:
1. Will they sell me a car? (because your finances are as much of a mess as the city of Detroits)
2. Whats the payment?
Since you can't turn anywhere else they will ream you, expect a nice 10%-15% interest rate over the next 8 years. Enjoy paying $40k for a Honda Accord!
Car dealers love people like you because you only care about two things:
1. Will they sell me a car? (because your finances are as much of a mess as the city of Detroits)
2. Whats the payment?
Since you can't turn anywhere else they will ream you, expect a nice 10%-15% interest rate over the next 8 years. Enjoy paying $40k for a Honda Accord!
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Originally Posted By: hattaresguy
You really didn't get scammed, your just run your finances like Greece. So go educate yourself a bit Mr 574 Fico or you will continue to struggle in life.
Car dealers love people like you because you only care about two things:
1. Will they sell me a car? (because your finances are as much of a mess as the city of Detroits)
2. Whats the payment?
Since you can't turn anywhere else they will ream you, expect a nice 10%-15% interest rate over the next 8 years. Enjoy paying $40k for a Honda Accord!
Yep. They sold it contingent on the bank's approval, as long as they didn't intentionally lie in order to bump your APR up, I don't think this falls under the spot delivery scam.
You really didn't get scammed, your just run your finances like Greece. So go educate yourself a bit Mr 574 Fico or you will continue to struggle in life.
Car dealers love people like you because you only care about two things:
1. Will they sell me a car? (because your finances are as much of a mess as the city of Detroits)
2. Whats the payment?
Since you can't turn anywhere else they will ream you, expect a nice 10%-15% interest rate over the next 8 years. Enjoy paying $40k for a Honda Accord!
Yep. They sold it contingent on the bank's approval, as long as they didn't intentionally lie in order to bump your APR up, I don't think this falls under the spot delivery scam.
Yep and they threw him the keys over the holidays so now everyone is like "kewl Mr Sky has a hot new car". Now he is hooked, even if the bank comes back at 18%.
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