what do u think about this? i need your opinions

[felice]

ok so i was just discharged oct 25th. did not reaffirm my cap one auto loan, credit report shows discharged in bk 0 balance. applied for honda at honda dealership. now they did the ppwk and the documents say approval "pending"
but why is the lender capital one auto finance!?
i told the f&i guy that i did not think that would go thru! i said i just discharged a loan with them! he acted like it was no big deal.....
what do yall think? i mean to me it would be a miracle if i got another loan with them?
i would think i was blacklisted!
this whole thing has me nervous as i told them what i could afford to pay monthly, my current car is on its last leg and i hope they are not trying to pull the old switcharoo on me...calling back saying oh btw your interest rate went up 5% because we had to get another lender.......???? if so can i walk away from the deal? i gave them 1000 check not to be deposited until the end of the month.......help! i need your opinions
thanks yall!

[keepinitreal]

Do you have the car from the Honda dealership in your possession yet? If not, I'm not sure why you wrote them a $1,000 check. If you haven't signed a contract for a specific car yet, I would think you could just put a stop-payment on your check if you're having second thoughts about dealing with them.

[felice]

oh i have the car! with dealer tags on them.......i called today to check status they said app still pending. waiting on info from the lender.
and yes i guess in the end i could do a stop pay on the check, im just thinking that why would he try to use cap one auto when they are clearly listed on my credit report as incl in bk.......

[keepinitreal]

oh i have the car! with dealer tags on them.......i called today to check status they said app still pending. waiting on info from the lender.
and yes i guess in the end i could do a stop pay on the check, im just thinking that why would he try to use cap one auto when they are clearly listed on my credit report as incl in bk.......

Oh, ok. I'm sure the paperwork you signed has them covered if you don't get approved by their first lender, or even if you don't get approved.

When my son got a car a while back, he drove it off the lot and we thought everything was finished. A week later we got a call that he couldn't be financed and he had to get a co-signer. I co-signed and that solved the problem.

Hopefully yours will go smoothly and you'll get the interest rate you want. Good luck!

[Maquitagirl]

So they let you take the car off the lot without making sure they have financing? How does that happen? I mean I wish it would happen to me, but I have never heard of that unless you have perfect credit where they just knew you would get the financing without any problems.

[LSUTiger32]

They do it all the time, because they will find you a loan. Of course it's likely going to be a loan at about 20-25% interest.....so good luck with that.

[felice]

WeLl 18 pcnt was the rate they quoted me..but my thing is why would he put cap 1? If they end up changing the monthly pmt on me with a diff lender I'm not signin those papers and I'm goin 2 get my car back. I didn't trade my car...I was gona surrender it

[dumpinmydebt]

I wouldn't have signed any papers with an 18% rate anyway, but that's just me. I would've continued to pay on the crap 1 car that was discharged until I could build up my credit better and get a more affordable interest rate.

Why would you surrender your car to that dealer? I don't understand that. Aren't you supposed to surrender it somewhere that the lender has approved of? Or did your lender tell you to surrender the car at that dealer?

[Pandora]

Be very careful and read through your loan docs regarding what you did (drive off w/out financing approved yet). I've seen it where people are allowed to do this and get locked into the loan regardless of if the org. financing and terms were changed. Dealers that allow this type of transaction usually have some clause that states you agree to whatever financing they can get and there is no consumer protection unless they change the actual COST of the car itself after you agreed to X amount for the sale price. Usually once you drive off the lot - you're locked in as there is no right to rescind when it comes to autos. As far as your car you left there - good luck in trying to get it back - chances are it's gone already.

ETA: also because your financing isnt a "done deal" - if you get in an accident with that car - you are liable for it in full. Does your insurance company know that the deal isnt finished yet and you're driving it?

[Pandora]

Here is an article that explains how it works, and although it states California, this is usually how it works for most car dealers that do what yours did. Pay attention to the 10 day rule....

http://www.ucan.org/blog/gasoline_autos/automobiles/avoid_auto_fraud_when_sellers_can_cancel_a_car_dealership_financed_contract

[Freddy03]

This is common practice now with car dealerships. It happened to me a few years ago. I traded in my car and drove the new car for a week. I thought I when I left the dealership the paperwork was done.

Well they called me a week later and said the financing didn't go thru. I had to either return the new car or accept a new loan with a 3% higher interest rate. I said well I'll just return it get get my old car back. They told me "to bad so sad" my old car was already sold at auction and if I returned the new car I was responsible for any mileage put on the car.

This is a scam!

Becareful!

[felice]

oh my god! now im really panicking! im going to call them in a minute. no the lender doesnt know im surrendering my car. so it shouldnt be gone. i have the keys and where would they take it? they know i was supposed to pick it up. what i was thinking dumpinmydebt is that i could refinance it later to a better rate. right now my current car is not listed as me surrendering it....i have spoken with cap one auto in regards to my plans i figure if the loan falls thru, then i just keep paying on it. goodness im super nervous now! what have i done! ugh

[Pandora]

felice

Did you get any paperwork at all when you drove off the lot? If so, does it have something regarding the car you left there? You need to read through it carefully. Also, hate to say it but just because you have the keys doesnt mean they cant get in your car. Its a dealership... keys are available or can be made.

Did you use your car as a "trade-in" or something? I'm not sure how that could be done if you're behind in payments and surrendering it...but I'm sure someone else with experience in that area will reply.

[mrskal]

That sounds like a total scam, but probably all legal! I am sure there is paperwork that was signed though, this is why it is so important to read all the fine print.

[dumpinmydebt]

oh my god! now im really panicking! im going to call them in a minute. no the lender doesnt know im surrendering my car. so it shouldnt be gone. i have the keys and where would they take it? they know i was supposed to pick it up. what i was thinking dumpinmydebt is that i could refinance it later to a better rate. right now my current car is not listed as me surrendering it....i have spoken with cap one auto in regards to my plans i figure if the loan falls thru, then i just keep paying on it. goodness im super nervous now! what have i done! ugh

At this point it doesn't matter what you have done. What matters is what are you going to do?

You need to look at your paperwork and read the fine print to see what your options are. Hopefully things work out in your favor and this will be a good learning experience for you.