Anybody heard of this? Dealer won't take Capitol 1 or ELoan

jamesladd · #1 (**permalink**) 10-17-2007, 04:08 PM

I received this in a quote from a dealer in Atlanta. Anybody ever run into this?

"If we're able to assist you with your new purchase, and IF you are going to be financing the car, our dealership must be able to assist you with the loan with one of our many lenders unless we are unable to at least match the rate you can obtain at your personal bank and/or credit union. We cannot accept payment from any online lending companies, such as e-loan or Cap1."

SFTundraMan · #2 (**permalink**) 10-17-2007, 04:35 PM

Quote:

Originally Posted by jamesladd

I received this in a quote from a dealer in Atlanta. Anybody ever run into this?

"If we're able to assist you with your new purchase, and IF you are going to be financing the car, our dealership must be able to assist you with the loan with one of our many lenders unless we are unable to at least match the rate you can obtain at your personal bank and/or credit union. We cannot accept payment from any online lending companies, such as e-loan or Cap1."

Yup, I have seen it. Because a cap one check or an eloan check doesnt guarantee payment. We will take them but we always have you sign a back up contract just in case they dont give us the money.

For example, if e loan tells you that they want you to send them a pay stub and you dont have one. They wont pay us. Thus the reason for the back up contract. But we will take them

Cliffy1 · #3 (**permalink**) 10-18-2007, 12:56 PM

Quote:

Originally Posted by SFTundraMan

Yup, I have seen it. Because a cap one check or an eloan check doesnt guarantee payment. We will take them but we always have you sign a back up contract just in case they dont give us the money.

For example, if e loan tells you that they want you to send them a pay stub and you dont have one. They wont pay us. Thus the reason for the back up contract. But we will take them

Cory is right on the money. Collecting the funds from these companies is like pulling teeth. The piece of paper you have from them might look like a check, but its not. Not by a long shot. Its a draft and we don't get our money until a number of hoops have been jumped through.

We will take a draft from these banks, but will do everything possible to avoid it.

teacozy · #4 (**permalink**) 10-18-2007, 05:26 PM

The last 3 cars I bought were with Capital 1 "blank check". 2 different Toyota Dealers took them Power Toyota and Mossy Toyota as well as Long Beach Mazda. I think it depends on the dealer. I had no problems with Capital 1. In fact if you have a Costco membership and go through the "services" section on-line with costco and you have a executive costco membership, then give you a lower % than if you went through the Capital 1 website. I have pretty good credit, my fico is 770 and the best advertized rate through Capital 1 was 6.5% over 60 months (this was 4 months ago, before the rate drop). I ended up with 5.6% over 60 months which is fair. I was able to get all the rebates and a decent interest rate. It's not like the promotional rate I got from Lexus on the 05 RX330 which was 3.9%, but better than the 7.5% the dealer was offering me. If you are in a hurry, you can ask for a 7 day buy option and shop for a better loan than what the dealer is offering. Good luck.

SFTundraMan · #5 (**permalink**) 10-18-2007, 06:41 PM

Quote:

Originally Posted by teacozy

The last 3 cars I bought were with Capital 1 "blank check". 2 different Toyota Dealers took them Power Toyota and Mossy Toyota as well as Long Beach Mazda. I think it depends on the dealer. I had no problems with Capital 1. In fact if you have a Costco membership and go through the "services" section on-line with costco and you have a executive costco membership, then give you a lower % than if you went through the Capital 1 website. I have pretty good credit, my fico is 770 and the best advertized rate through Capital 1 was 6.5% over 60 months (this was 4 months ago, before the rate drop). I ended up with 5.6% over 60 months which is fair. I was able to get all the rebates and a decent interest rate. It's not like the promotional rate I got from Lexus on the 05 RX330 which was 3.9%, but better than the 7.5% the dealer was offering me. If you are in a hurry, you can ask for a 7 day buy option and shop for a better loan than what the dealer is offering. Good luck.

As stated, we will take it but we will make sure our asses are covered with a back up contract.