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      02-23-2015, 01:47 PM   #23
bmkman
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Quote:
Originally Posted by ND40oz View Post
I bought my last vehicle with a certified check from my credit union. I still had to fill out the top half of the credit application with name, address and social, I didn't complete the entire application nor did I sign it. The dealer needs that information to run their own credit/background check to comply with the CIP for a financial transaction.

https://www.privacyrights.org/custom...l-transactions

http://www.ofaciq.com/Resources/24.pdf
X-men that is a good point about the dealership doing a financing check to close the deal in case the cheque bounces. Does that mean there is no buyers protection if you change your mind? I think we have some kind of 48 hour buyer's remorse protection where I live but I never looked into it because hopefully I never have to use it. Maybe thats why my dealership never ran a credit check on my purchase. My friend told me he purchased a Porsche 911 but when the wife told him that'the last car he buys...he returned it the next day.
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      02-23-2015, 01:54 PM   #24
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Quote:
Originally Posted by bmkman View Post
X-men that is a good point about the dealership doing a financing check to close the deal in case the cheque bounces. Does that mean there is no buyers protection if you change your mind? I think we have some kind of 48 hour buyer's remorse protection where I live but I never looked into it because hopefully I never have to use it. Maybe thats why my dealership never ran a credit check on my purchase. My friend told me he purchased a Porsche 911 but when the wife told him that'the last car he buys...he returned it the next day.
You don't need backup financing when when the dealership finance guy is on the phone with your credit union verifying everything and getting them the rest of the information they need. Besides, why would a certified check bounce?

This has everything to do with the dealerships being considered a type financial institutions and having to follow all the regulations required by it. They may tell you it's due to backup financing, but that's just an excuse.
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      02-23-2015, 02:30 PM   #25
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Quote:
Originally Posted by Jordster View Post
Not really...

You can simply back out. Your deposit is forfeit.

The dealer must try to sell the car to someone else.

The dealer can sue you for damages, but unless your car is unsellable to anyone else (in theory), their damages are the amount of extra money it cost them to sell your car, not the total price of the car.

If the dealer sells your car the next day to someone else, their damages add up to basically zero. Since they have already forfeit your deposit, they have likely already been compensated for their damages.

Considering the cost of lawyers, it's unlikely that this will ever happen. My best guess is the standard practice for dealers when a customer backs out is to just keep the deposit and move on to try to sell to someone else.
If put it that way, you can pretty much back out of any contract. When I sign a contract, I usually try to honor it.
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      02-23-2015, 02:46 PM   #26
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Quote:
Originally Posted by bmkman View Post
X-men that is a good point about the dealership doing a financing check to close the deal in case the cheque bounces. Does that mean there is no buyers protection if you change your mind? I think we have some kind of 48 hour buyer's remorse protection where I live but I never looked into it because hopefully I never have to use it. Maybe thats why my dealership never ran a credit check on my purchase. My friend told me he purchased a Porsche 911 but when the wife told him that'the last car he buys...he returned it the next day.
I believe some states do have some sort of buyer protection, fortunately, I never had a need to look into it as well. Like you stated, each state will have different laws regarding buyer's protection. A better question here is rather if there is some sort of state or federal law that require the dealers to run a credit check and if credit check like these will actually lower your FICO scores, some website suggest that it will not.
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      02-23-2015, 04:55 PM   #27
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Quote:
Originally Posted by ND40oz View Post
You don't need backup financing when when the dealership finance guy is on the phone with your credit union verifying everything and getting them the rest of the information they need. Besides, why would a certified check bounce?
Great replies, everyone!

So i think running a soft credit check, maybe... but running a hard credit check for a secondary loan, with APR and monthly payment figures in the sales paperwork for me to sign, is very odd and a little shady, especially after my credit union has confirmed to them that the loan check I brought in was as good as cash.

I think this nonsense might be based on some quota from management or some non-customer centric metric, and less so on fraud prevention. Unfortunately now I'm having to worry about this 'backup loan' dropping off correctly in a few days after my credit union pays off the balance. I have excellent credit so the impact is minimal, but this was unnecessary. I wonder if it's a mandate from BMW NA or just specific to my dealer.

The SA is now nervous that I'll give them a negative mark on the post-sales survey... Still considering it.
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      02-23-2015, 05:09 PM   #28
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Quote:
Originally Posted by Ultbruin View Post
My dealer also checked my credit even though I was paying cash, or in this case with a check. He said they can accept a check if it's a high credit score.
So unless you're paying true cash with $100 bills they may have to run your credit anyway.
Well in Canada this would (and should never) be the case, I've handed over a certified cheque and driven away 5 minutes later with a 35k vw, if a dealer was worried your payment would bounce or not come through, give them the payment and pickup the car 3 days later after its all cleared, and make them give you a free jacket for the hassle problem solved , a credit score hit can be significant depending on your score...

I bought a 30 k harley with a personal chq some years ago and call to the bank for the dealer to confirm funds was all they needed, rare but it happens..

Id bitch at them
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      02-23-2015, 06:42 PM   #29
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I don't think that my dealer ran a hard check, but since I had applied for a loan at the credit union within 30 days of the purchase, it wouldn't have hurt my credit score any anyway. Multiples within a short period don't hurt more than 1, since the assumption is that you are comparing offers, and not buying several cars.

My loan was for 1.49% over 5 years, and my money was available in a tax free muni bond fund that has averaged 4% over the previous 3 years, I figured it was worth the flexibility to take the loan, and still have the money if something else came up. If I ever decide to change my mind, I can sell the mutual fund, pay the capital gains taxes, and pay off the car. A pure stock fund could average much higher, but it can also go down much more.
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      02-23-2015, 06:52 PM   #30
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Quote:
Originally Posted by gIzzE View Post
Can't you just do an electronic transfer on cash purchases?
On many accounts, at least here in Canada, theres a reasonable limit for daily withdraws and transfers, i even set mine lower than necessary because i don't need or use large transfers and its just another safety on my account, if it gets compromised its limited risk..
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      02-23-2015, 08:51 PM   #31
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Quote:
Originally Posted by The X Men View Post
If put it that way, you can pretty much back out of any contract. When I sign a contract, I usually try to honor it.
I think you misunderstood me.

I was just pointing out what would happen if you don't follow through with your end of the deal. I personally also try to honor the contracts I sign!

However, in reality you CAN pretty much back out of any contract, but you will be responsible for damages.
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      02-24-2015, 10:03 AM   #32
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Quote:
Originally Posted by idajica View Post
Great replies, everyone!

So i think running a soft credit check, maybe... but running a hard credit check for a secondary loan, with APR and monthly payment figures in the sales paperwork for me to sign, is very odd and a little shady, especially after my credit union has confirmed to them that the loan check I brought in was as good as cash.

I think this nonsense might be based on some quota from management or some non-customer centric metric, and less so on fraud prevention. Unfortunately now I'm having to worry about this 'backup loan' dropping off correctly in a few days after my credit union pays off the balance. I have excellent credit so the impact is minimal, but this was unnecessary. I wonder if it's a mandate from BMW NA or just specific to my dealer.

The SA is now nervous that I'll give them a negative mark on the post-sales survey... Still considering it.
Is that what your dealer is doing? Applying for a loan thru their bank and have your credit union's loan check pay off the first loan. If that is the case, I would have been thru the roof. Did they get a commission for the first loan? If that is indeed what they are doing, they deserve to get a bad review, it shady business practice.
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      02-24-2015, 10:53 AM   #33
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Do not think this will apply to OP's problem - but may be worth reading:

http://cars.about.com/od/buyingadvic...ing-Scam_2.htm
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