Been driving 2010 Prius for a week got it from Toyota dealer

Discussion in 'Gen 3 Prius Main Forum' started by gbenj, Sep 13, 2015.

  1. gbenj

    gbenj New Member

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    Got this used prius from dealer Toyota of Riverside but a week later received letter saying unable to finance. Have not talk to the finance manager over the phone always goes to voicemail. We put $2000 down for almost $10000 car. My wife credit score is good and we had our 18 year old daughter in the loan which one the manager suggested. I want to know if anyone have gone through this. Also checked Yelp for there ratings which we should have done first. Thanks in advance.
     
  2. The Electric Me

    The Electric Me Go Speed Go!

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    Who Knows?

    I'd be upset if it took them a week to contact me, and then by "snail mail".
    I'd be upset if they aren't answering their phone or voice mail. You should be able to reach SOMEONE.

    I question why they would want or think it advantageous to include your 18 year old daughter on the loan? At 18 years old, usually the loan dynamic is reversed and it's the parents signing for young adult. If this was your loan, I don't see the advantage of your daughter being a co-signer. ---Someone more experienced in financing or loans might be able to explain a reason or advantage. Seems fishy to me.

    But at this point you need to communicate.
    If all you have is a notification that financing fell through, then that's all you know.

    You need to talk to them ASAP.

    If this is a Toyota dealer and you really can't reach anyone, you could consider calling Toyota Customer Care, they might be able to rattle chains and spur response.

    First I'd try contacting them directly.
    Communication and more information is what you need.
     
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  3. The Electric Me

    The Electric Me Go Speed Go!

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    Don't delay...
    Right now they have 2000 dollars of yours...
    and you have a unfinanced vehicle of theirs.
     
  4. gbenj

    gbenj New Member

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    I also notice the free carfax they had on this prius. Second owner did not owned it for a long time but could not remember. Maybe a month only.
     
  5. gbenj

    gbenj New Member

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    Just got the registered mail last friday and we will be going today after my wife's back from work.
     
  6. JimN

    JimN Let the games begin!

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    I could understand the kid on the title & loan if receiving a student or first car buyer incentive. I could see adding the kid to establish or improve a credit score.

    Since this is a used car there probably isn't a student incentive. If the kid's credit score is bad or doesn't exist that may be enough for the lender to deny the loan.

    Since OP's wife & kid were denied credit they are entitled to an explanation and copies of their credit reports. There is probably a law or regulation in effect that requires notification in writing by registered mail.

    Time to shop around for a used car loan.
     
  7. daddyd302

    daddyd302 Junior Member

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    Any update OP?
     
  8. djasonw

    djasonw Active Member

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    This makes no sense to me. What dealer releases a car without securing financing? If the credit scores of the buyers are questionable, more reason not to allow them to drive home with the car. Something is very strange here.
     
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  9. DanMan

    DanMan Junior Member

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    Most likely, they submitted your deal to several banks. Some of them declined, and they are required to send you an adverse action notice. If the deal was unfunded, the dealership would be calling you (or at least returning your calls). I wouldn't worry about it at all.
     
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  10. orenji

    orenji Senior Member

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    In California they let you take the car home while the dealer tries to get you a loan.
     
  11. cipsaz187

    cipsaz187 Member

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    This has happened to my dad back in 2003. Surprised it still happens today..
     
  12. Prodigyplace

    Prodigyplace Senior Member

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    Not today, it was in 2015.
     
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  13. orenji

    orenji Senior Member

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    2015 or 2018 it's still the norm.
     
  14. hayden55

    hayden55 Member

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    I'm sure the dealer REALLY wanted to sell you that car. More than likely the primary on the loan had too high of a d2i value and they wanted to add in the 18 year old with more income and no debt. If you get over 40-43% after your loan its pretty much an automatic disapproval even if you have 750+ credit. Sounds like you might either have a shit credit score (which I doubt), or more than likely you already spend too much of your monthly income on outstanding loans.
    D2i value = Monthly debts / monthly income (after they approve your credit score)
    So if the bank knowingly approves you with a shitty d2i your chance of default even with a fantastic credit score is just too high. Banks also get a penalty if too much of their loans are high d2i loans so they for sure won't do too many of these. Think housing market collapse regulation.
    Solution: Go to a bank and ask for a used car loan, they will run your credit report. You will get to see all monthly credit lines, your three credit scores, then try and pay off your monthly debts to where if you add in your car payment you stay under 40% of your income. Then credit score permitting you're basically automatically approved.
    If your d2i value is over 40-43% your best loan you will probably get without a high collateral value is probably 25%.
     
    #14 hayden55, Dec 28, 2017
    Last edited: Dec 28, 2017
  15. Cparker

    Cparker Junior Member

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    Same thing happened to me when I bought an 88 Toyota Truck in 90. When I got the notice, I went to my credit union and got a loan. Then a few days later i got a letter from the original bank warning me about my late payment. They were messing with me !! Banks that mess with me don't deserve my business. Glad I canceled and got the loan at my credit union. I think the reason was I had just started paying a loan on a mortgage. And that showed up on my credit report.
     
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