Toyota SUCKS!

[ConfusedinOC]

Just wanted to share my story:

With the help of my parent as a co-signer I was able to purchase a used truck for 2.9% @ 60 months through Toyota financing. Well yesterday I receive a certified letter ( withing the 10 day period) stating that my conract is being rescinded and that I must return the vechicle to the dealership. I went ahead and called the finance guy at the dealership and he stated that Toyota did not like that I had included a car loan in my BK and that they would not honor the contract (shouldn't the dealership been aware that this would be a problem?). Now I have to go back to the dealer and maybe finance with another lender but only with my parent on the note that means no credit reporting for me

[keepinitreal]

That does suck! Can you walk away if the finance guy only offers a much higher payment? Did you pay a non-refundable deposit?

[ConfusedinOC]

The back of the contract gives the seller the option to cancel the contract before ten days of financing is not secured. It does state that the seller shall return all considertations/trade in upon the return of the vehicle providing normal wear and tear. Luckily I only forked over $500. Finance guy did say that my father would be able to get the car in his name only but at 5% for 66 months. I will be going to meet with him in a bit. I will keep you posted.

[Jacey]

What happened?

[helpmeout]

Personally, I would not buy a Toyota after that. Your BK shouldn't matter at all since you have a co-signer.

[Flamingo]

Personally, I would not buy a Toyota after that. Your BK shouldn't matter at all since you have a co-signer.

The problem is not Toyota, the problem is the dealership finding a lender who will do the loan due to the BK and probably other issues. BK is Bk and bad credit is bad credit. Some lenders just won't lend with either and those that do will with high interest and fees or other conditions.

[Amy26]

I'm actually surprised they would try to push the loan through toyota financing at all. Even when I bought my car originally no direct dealership financing would touch me... it did get approved though through Americredit and it had a horrible interest rate.

However, I do find it odd that you wouldn't be able to get decent financing...granted I dunno what your credit looks like, but there was another thread on here about a bunch of people getting approved with Capital One financing at really good rates.

[siamese]

Maybe Toyota thinks you can file another Chapter 7 within 8 years..like every 6 months?! There was an article on bankruptcylawnetwork that addressed this behavior..its called revenge.
Someone who just filed a BK is a great credit risk since they can't file a Ch. 7 again for 8 years which is usually longer than most car loans. Also, recent dischargees are very concerned
with improving their credit rating so are likely more attentive to their credit scores than before.

Kind of childish, as companies are in business to make money, not to play the prison warden with this punitive behavior.

[IBroke]

Someone who just filed a BK is a great credit risk since they can't file a Ch. 7 again for 8 years which is usually longer than most car loans.

Hmm, I read this part 3 times now in a row but I don't get it..

Shouldn't they be a LOWER credit-risk when considering the aspect of BK-filing?

[siamese]

By great credit risk, I meant that the lender is more likely to not lose money on someone who just filed (since they can't file again for 8 years) than someone who hasn't. Semantics I guess

[HRx]

This isn't an uncommon story and Toyota isn't the one you should be blaming. A lot of dealerships will process an auto loan before it's been fully vetted by the respective bank/credit union. But will send you home with the car and documents they processed concerning the loan. These are sad stories...that's been happening for years with dealerships.

[JKPDX]

Talk to the finance director and see if he/she can help. I am seven months out of BK and just bought a new 2011 Toyota at 0 percent financing for 60 months. I paid the difference in my trade in value versus loan balance, plus put $2300 down. Originally the salesmen (two of them) said it would be no problem, but then the finance director called and said they wanted more money down. I went from a 6 year car loan at 7.49% (bought two months out of BK) to 0% for 60 months, so I think I did good. I didn't have a co-signor, I just had to provide income documentation, references and explain why I filed BK.

[mijd]

A lot of car dealerships especially new car dealers have Fast Track and Dealer Track where your FICO can be checked 7/24. Some banks that issue paper will allow the F&I to approve loans within certain boundries... unfortunately I've yet to see one that allows F&I approval with bankruptcy. Federal and states are tightening laws concerning pulling credit and I think the days of allowing a customer to drive a car home without final loan approval are coming to an end. I have seen F&I approve a loan and then have the lender come back and rescind it... but only once in 15 years.
My CU told me they won't approve car loans until after 2 years post bankruptcy. That sounds like revenge that another poster was talking about or just plain punishment especially in todays economic climate. IMO.