I want to know, and yet I don't

[Okieblue]

We bought 2 new vehicles, got paperwork for one to get registered, other one was supposedly sent payoff 15 days ago, CU does not reflect that, we are 1.5 months behind on other loan payment or about $680, can't make it up til next month. Can they take the vehicle payoff money for the trade-in and apply to other loans and not release title to dealer? I'm thinking of doing a payday loan, have never done one before, ever, so not sure about how much interest they charge, if this is worth it. We need to get the car situation worked out. I may be jumping the gun, not sure this is what has happened, but can't think of any other reason.

[doni49]

I'm confused. First you say "bought 2 new vehicles". Then you say you're waiting for the CU to acknowledge payoff.

[ccsjoe]

I would honestly call the CU and ask them what exactly they did with the funds. Takes the guessing out of the equation.

I would also steer clear of payday loans, last time I took one the APR was almost 300% ($255 for 10 days, $300 payback, so $45 ineterst for a 10 day period, multiply that one into a one year).

[Okieblue]

Old vehicle shows as still owing, waiting for CU to show old vehicle as paid as they were given the funds earlier this month. I set up payments with them to get current on other loan, they are satisified and won't call me til we miss again. I was just curious if they would take payoff meant for vehicle loan and use it towards loans that were behind.

[Freddy03]

Please do not do a payday loan. They are vicious circle. (Speaking from experience)

[Pandora]

... I was just curious if they would take payoff meant for vehicle loan and use it towards loans that were behind.

Okie - when you sent in your payment - did you write on your check / cashiers check / money order *however you paid* the loan number that it was to be put towards by chance?

I understand what you're asking - and honestly in dealing with our CU (way before filing BK - before job loss) - we've had all our vehicles with the same CU for over 20 years. When we had 2 accounts open for our vehicles, at one point when we went to pay off 1 of them - they put it towards the other one, for whatever reason. Was quite the mess to fix it but thankfully we had written the corresponding account on the bottom of each check - so we could prove it was their fault and not ours.

I'd definately call and find out why its showing as it is - and if you didnt write the account number on payment, I'd recommend doing so in the future for any further vehicles and/or loans you may have as well as include a copy of the payoff statement that was sent to you.

[Okieblue]

Yes, yes, yes, I know I should have talked to them or the dealer before flipping out. Ok, I just got about 5 letters in the mail turning us down for a loan on that car, so talked to someone at the dealer, was told the payoff just went out. Ok, so why did they tell me payoff went out 2 weeks ago. I am so stressed.

[blueblur]

ok, i'm an F&I manager at a major motorcycle shop, it works the same as cars.

1. they will not apply a payoff amount meant for one vehicle's lien release and apply it to another loan. that would cause major probs for the dealer trying to get the title to a car they are probably going to sell fairly quickly either on the lot or at auction. payoffs in my experience take anywhere from a week to 30 days to process and have the title in the mail to the dealer.

2. the dealer most likely assured you the payoff was sent so you would not make any unnecessary payments on the loan you traded in, but if they do not have a large cash flow, they most likely waited until they were funded for your new loan to make the payoff (floating cash basically, dangerous practices, but necessary some times). Unfortunately, if your Credit Union either had a payment due shortly after you traded and they were not aware of the pending trade, they would still be expecting the payment from you. I have had this happen with trades myself and it's usually remedied by a call from the F&I dept. of the dealer to the CU to make them aware of an incoming payoff and to reverse any late fees and accrued interest beyond the payoff date.

3. RE: the 5 letters getting turned down... the dealer most likely "shotgunned" you to at least a half-dozen lenders, basically shopping you for the best terms (likely better for them, higher reserve payouts and such). a lot of contemporary car dealers have online credit application systems that automatically send apps out to a LOT of lenders with one click. great for the dealer, but horrible for the buyer! basically, you get 6-15 hard inquiries on your equifax report in a matter of minutes. doesn't do anything good for your scores.

let me know if you have any other questions. i've been in F&I in motorcycles for about 5 years and have a pretty intimate knowledge of how the car dealers' F&I offices work too!

BB

eta: there are a TON of things that go on behind the scenes in the offices at any dealership that 99.9% of customers/people don't ever see or know about. only when a situation "grows hair" a bit, as it did with you, do any of these things see the light of day. mostly accounting and processing/paperwork stuff, but it's amazing the amount of money the F&I office is responsible for in a dealership. prob the reason we're usually the highest paid/earning people in the shop!