Questions on buying Toyotas/Potential Car Salesman Shenanigans

[MurphNKY]

I know there are a few car salesmen out here...have read a few solid posts in the past where you guys have bantered back and forth on the business. So, I have a question on smoething I'm dealing with today.

Three weeks ago, I assisted my sister in buying a Toyota...she's younger, not as wise to hard sale tactics, she was nervous, etc. Anyway, went to our local Toyota dealer - as she has a discount - and she purchased a brand new Camry.

Anyway, this is my sister's first new car purchase, she has so-so credit (has repaired it dramatically in the past year), and, while I was concered that she was going to get seriously run over by these guys...everything appeared to be on the up and up. We sealed what appeared to be a good deal and left three hours later.

Anyway, fast forward to yesterday...Toyota financing calls and says they now need SIX REFERENCES and that they have a question about something on her credit report. WTF?

Understand they need to cross i's and dot t's..but three weeks later..after she left the lot with the car?!?!

This smells an awful lot to me like they're trying to get more upfront money from her. I went through something with Isuzu years ago where they let me go off the lot with a car, called four days later and told me they had concerns and needed $4,000 down if I wanted to keep the car.

I talked to a friend back then who was a dealer and he said THAT was a definite tactic that was used...basically, get the buyer out the door, let him/her fall in love with the car and then jack them up for more up front cash a few days later. Apparently there's some language that gives them the right to pull this kind of stunt.

Anyway...is this what I'm dealing with here? Does this sound to you like just crossing/dotting or does it sound like this is going to be followed up with..."We need two grand more or you need to return the car?"

Please understand I know very little about this sort of transaction...and I'm not criticizing the industry...I just know there are shady tactics sometimes used...and wondering if that's what is ahead here.

Thanks for any input you may have on this!

PS - Go Bengals!

[daryn]

san dimas high school football rules!!!

[Bostaevski]

It's called "Bushing" and it's completely illegal. They are trying to defraud you.

They have something like 3 business days to get the loan approved and if they can't they have to call you back, you return the car, get back your downpayment and trade-in and the contract is nullified.

http://www.komotv.com/news/archive/4010596.html

Edit: Actually looks like that's applicable to Washington State Law at least. Dunno about your state.

[Bostaevski]

Here's another link
http://www.carbuyingtips.com/scams.htm#Scam1

[RoundGuy]

[ QUOTE ]
Anyway, fast forward to yesterday...Toyota financing calls and says they now need SIX REFERENCES and that they have a question about something on her credit report. WTF?

[/ QUOTE ]
Tell them to go [censored] themselves. Just make damn sure she doesn't miss a single payment. They can then repossess the car and she loses everything she's paid so far.

[bobman0330]

1) Isn't financing through a dealer asking to get ripped off?
2) I'm not sure I understand what happened. Your sis drove away with the car. Did she sign anything? What did the thing she signed say?

[pokeraz]

I was a finance manager in a dealership for 10 years.

The laws will vary state to state. I am only familiar with AZ and this is very common here. However, it is not a 'tactic'.

Here, we send people home in cars without having first secured financing. We're pretty good at what we do though and can very accurately judge what banks will approve and what they will not. We'll then write a contract based on that. However, occaisionaly we get it wrong and the bank will require different terms in order to approve a loan. A deal is not a deal until the contract is purchased by the financial institution. So, if the bank approval differs from what the contract is written at, we will need to write a new contract. That often means more money down or a different interest rate or even a change in the number of payments.

Of course, you do not have to sign a new contract. You can give the car back though this rarely happens because as stated above, people fall in love with the car and usually will do anything to keep it.

[guids]

[ QUOTE ]
I was a finance manager in a dealership for 10 years.

The laws will vary state to state. I am only familiar with AZ and this is very common here. However, it is not a 'tactic'.

Here, we send people home in cars without having first secured financing. We're pretty good at what we do though and can very accurately judge what banks will approve and what they will not. We'll then write a contract based on that. However, occaisionaly we get it wrong and the bank will require different terms in order to approve a loan. A deal is not a deal until the contract is purchased by the financial institution. So, if the bank approval differs from what the contract is written at, we will need to write a new contract. That often means more money down or a different interest rate or even a change in the number of payments.

Of course, you do not have to sign a new contract. You can give the car back though this rarely happens because as stated above, people fall in love with the car and usually will do anything to keep it.

[/ QUOTE ]

this is how it is for most states.

[pokeraz]

BTW, if the bank (not the dealer) called for six references, that deal has most likey been approved and they are just lining up a way to find your sister when she stiffs them on payment.

[bocablkr]

What would happen if you decided not to sign a new contract but had traded in your car on the first one? What if your trade-in is sold?