I got pre-approved from a credit union for the auto loan for a Prius. So I went to the dealer and mentioned that I will be financing via ABC credit union. So, the dealer agreed and on the P&S agreement he mentioned the name of the ABE credit union. Later, the credit union gives the final approval of the loan. The next day, they call and ask me if I am on a US visa. I said yes. So she asked me about the visa expiry date and all. I told her its till 2016. And now she tells me that they need to rethink about the loan approval. Now I am stuck. I have promised the dealer that I will be financing via the credit union. What if the credit union gives me a loan only till 2016 and not for 5 years? My monthly payment will bump up above 600. Please help on what I can do in this scenario. My other friends who are on student visa got the car, financing and everything. Only I am facing this problem
relax, if they won't give you the loan, you don't have to buy the car. the deal is not consummated until you have the car and they have the money. i would ask the credit union why they pre approved you and are now balking. have you asked the dealer for a finacing quote? maybe you should talk to dianne at carson toyota, are you in southern cal?
But the Purchase and Sales agreement already reflects that the ABC bank will be financing me. I asked the credit union on why they didnt check my visa status and all while pre-approving. They said that the lady who took the information didn't think of asking about the visa. What a stupid reason !!! I don't really trust these dealers in MA since they bluff the credit score in order to gain more interest.
yes, that's a poor excuse. they don't have to ask, they just run a credit report and get all your financial info. if the dealer offers you financing higher than the c/u, just walk away. do you have a friend or relative that would go to the dealer with? it helps to have support when making important decisions.
I did take my friend with me. But who would expect that the bank will suddenly think of changing the decision after they have given the approval?
no one, i would think. if money is an issue, have you thought of something like a civic, yaris and etc.?
sounds to me you've already taken possession of the car? you can always give it back? The paperwork that's filled out with abc credit union doesn't have to be done at abc. It's just a formality of putting something on paper. The dealer can finance you (possibly slightly higher rate), but it's definitely an option
No I didnt take the possession yet.. so is it not compulsory to finance through ABC credit union even if the P&S agreement says so?
you don't have to finance through ABC.......you just have to produce a check/cash for the sale price of the car to the dealership
That makes sense. If you are only here FOR SURE thru a certain date in 2016, then the loan can't be for longer than that... why would they set themselves up for a problem in 2+ years when you have to leave them a car behind that's not paid for?
Yeah they assume you'll skip town once the visa is up, which I suppose you have to if it isn't extended. Yes dealer fluff interest rates, but if you have one in pocket, they are going to try and beat it. Dealer financing as "bad" is only when you walk in with no comparison and they rake you over the coals. If you have 2.9, see if they can do 1.9. With that said, you could simply ask of they could get you a better rate. Don't say the other deal is falling apart.
TFS is also going to see how long she is here. If she has a social security # based on a VISA permit, they won't finance longer either.
Might have to put a bigger down payment so you can make the payments on a shorter term loan. Other option is a cheaper car. How about a lease? The payments are usually lower on a lease and you can give the car back to the dealer when the lease is up.
Another thing... I THINK there is a law that gives you 3 days to back out of the deal, even though you signed. You don't even have the car yet, so I think so, BUT... You need to verify this with someone else because I am not completely sure. Good luck
But then how come students on F-1 visa status are getting the 5 year loan ? My friends who are on F-1 (student visa) have a 5-yr loan approved. The visa duration left for them is less than 5 yrs as well
If you haven't taken possession, just walk. Whoever the finance manager is will probably "find a way" to get you the exact same financing rates....or more likely, they'll probably dangle a loan that's a half a point higher at you to see if you will sign out of frustration. Did you give them any down money? If not, you can walk. Purchase agreements (or contracts) are different just about every state and commonwealth and there are more caveats in them than there are in a life insurance policy, but generally speaking they're worthless as an instrument to force you to consummate a purchase....unless of course you've already given them money.
I already gave them 3K .. But at the time of signing the deal I asked him "what if the financing at the bank is dishonoured" . And he said he will return the 3K. But those were just words. Dont know what will happen.
Don't worry, you will get your money back. In your situation (I know you wanna buy) but, I would lease. Then if your visa gets extended, you can buy the car. People do it all the time.
