This will serve as a warning to all who are struggling to repair their credit and need to purchase a car with any dealership.
December 5 of I completed my Chapter 13 repayment plan and was awaiting official court discharge papers. I needed to replace my old 1986 Dodge with a new car, so started shopping.
I anticpated that not having the actual discharge papers in hand might pose a problem with being approved for financing (even though I had established new R1 credit, and had R1 credit prior to the misfortune that caused me to seek a repayment plan). So offered three dealers the same deal:
I will put down $8000.00, and would like to finance the remaining $5000.00 for 36 months. I can provide proof that I have completed my Chapter 13 program with letters from my attorney and from the Court Trustee. I will be happy to fill out all applications prior to coming in to your dealership, but don't want to take up your time or mine unless the financing is approved. That's the deal.
World Ford pulled my credit report three days before I walked into the showroom, and assured me that they could write the deal and that financing was approved.
To their credit, the price of the car and the car was a good deal — except for the mysterious "VIN ETCH" charge that appeared on my invoice.
To my dismay, the Finance person attempted all the usual scams: "The credit company won't approve you unless you purchase credit life AND credit disability insurance." I declined. He added the extended warranty contract, which I had removed.
In short, the application I thought was approved before I walked in the door, was now doubtful. The salesman assured me that financing was approved, and that the paperwork was to try and get me a better financing rate. He added, "the worse that can happen is that we give you back your deposit check and take back the car.."
At that point, I should have walked out the door — because, you see, dealerships have this rescission agreement they ask you to sign that states they're entitled to fees and expenses if they have to "take back the car" irregardless of promises made by a salesman. Since the fees aren't identified, these can be anything they deem necessary.in my case, it could have been the full amount of my deposit - leaving me without a car and without the budgeted funds to purchase a different car.
To make a long story short, Dec. 24th I was "approved." The day my deposit checked cleared (Dec. 31st), I wasn't — "Bring back the car, or bring us $5000.00." When I called the Finance Manager, he said the screen showed that I had been "approved". Then called me back and said it was conditional: bring in your Chapter 13 discharge papers. (the one thing I told them in advance I didn't have and had no control over. Hmmm!).. I faxed a letter from the Court Trustee.
January 16th, received the registration for the car with the lienholder listed as Ford Credit. I called Ford Credit to get payment addresses, they didn't have a record of my financing. The salesman called again to say: "Bring back the car or the money." Wrote the Manager, who had the finance person call me on Jan. 19th, who told me, "I don't understand, my screen says you're approved." Got the "you're not approved" letter from Ford Credit of Florida dated January 21st.
Since we know it takes credit companies 30 days to process these notification letters, we can safely assume the dealership knew before I walked into the showroom that the terms of my deal had not been met. So, they lied in order to either: absorb my deposit and take back the car (hmm, sell the car twice?), or anticipated that I would be in too deep to back out of the deal and would cough up the additional cash (win-win for them).
That brings us to the VIN ETCH - the car was from another dealership that uses an aftermarket Window Etching program: it's NOT the auto VIN number, but an "insurance" policy number with contact phone number that is supposed to pay the owner cash if the car is stolen. Six windows had this other dealership's policy number etched, four had World Ford's International Aftermarket Sales number and phone. A call to both companies revealed that the "policy" for those numbers had not been activated, and that I would have had to sign a contract bearing their company's name and address in order to receive a certificate for my insurance company.
If the policy is not activated, there is no way to tell which car the "ETCHED" window came from if the window was removed from a stolen vehicle.
Only when I went in to World Ford and pointed this out did they finally credit me for the "VIN ETCH" that they charged me. (But not before they tried to tell me that the vehicle was properly etched for identification purposes)
So, the warning here is do not accept delivery of a car if financing has not been approved in writing!!! And only believe it if you receive notification from the finance company.
Be sure to call those "phone numbers" etched on your car windows to be sure that the company AND the policy you paid for exists. Better yet, take the car to your local police department and have the windows ETCHED for free.
If you have been through a Chapter 13 Repayment Plan and completed it or have less than stellar credit or haven't purchased anything on credit in the last five years, you are at the mercy of people who now want to take advantage of your misfortune or past purchase decisions and make a profit at YOUR expense.
Did they ever attempt to make this right? No. I wrote the General Manager, the Sales Manager. And got no response, other than one phone call on January 19th.
I got a weak apology when I handed over my check for the remaining balance.
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