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  • Dealerships

    I have a new job. I am now an underwriter, which takes me well and truly away from working directly with the bank customers as every loan has a loan officer in between me an them.

    Well, not every loan. Some loans, car loans, are sent in directly from the dealership instead. And the dealerships cannot exactly be called co-workers, so I'm going to call them customers, even if there is another level of customer beyond them.

    Dealerships... dealerships suck.

    Some car buying advice: if you have cash down, don't tell the salesman until after the price of the vehicle is determined. Why? Because you would not believe how many loans come to me with the sales price jacked up to mostly destroy the positive impact of that cash down. Loan-wise, it usually works, because if person qualifies for x dollars for x car, they qualify, but sometimes I wish I COULD talk to the customers directly again so I can ask them if this car is really in so fantastic of shape that they are willing to pay so many thousands more than invoice or retail value.

    But I digress.

    The tale of today is the dealer with a $70,000 end of month sale on the line.

    Short story: Customer does not qualify for a $70,000 auto loan. Score is good. Income is good. If underwriting was solely about the score and the income, I'd be out of a job. This customer's high credit is 33k, paid on time for 18 months. (Plus enough small credit to be generally established, but 2k credit cards do not establish payment history for a 70k auto loan)

    So, loan is declined.

    And the dealer calls.
    Customer has the income.
    Doesn't matter. 33k at 18 months does not make a 70k auto loan.
    Customer has a great score.
    Based mostly on 2k credit cards. That does not make a 70k auto loan.
    Then have someone else look at this!


    *sigh* Fine. second look request for another underwriter. Second underwriter declines.

    And the dealer calls.
    ... rinse and repeat the conversation above with the lovely little addition:
    "Come on, this is the only customer I've got in the place!"

    Making your commission is NOT my job.

    Dealer goes through FOUR different underwriters, all of who decline the deal.



    At least this customer wasn't some young 20s kid getting their second car. (Dealers take HUGE advantage of second-time auto loan borrowers. 1st time buyers, lenders are incredibly strict, but second time auto loans have just enough credit to squeak by the System Approval criteria, and some of the dealerships are really good are pressing those guidelines up to the line.

  • #2
    One of the many reasons I have bought the last 3 cars through Costco. Easy-peasy and fair price. You don't talk to the sales people at all. Finance through credit union.
    Some days, it's just not worth chewing through the restraints...
    TASTE THE LIME JELLO OF DEFEAT! -Gravekeeper

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    • #3
      Agree completely


      shit that's more then my 1st house.
      AkaiKitsune
      Sarcasm dear, sarcasm. I’m well aware that dealing with civilians in any capacity will skin your faith in humanity alive, then pickle anything that remains so as to watch it shrivel up into an immortal husk thus reminding you of how dead inside you now are.

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      • #4
        It's more than my first house too. Over twice as much.
        "I don't have to be petty. The Universe does that for me."

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        • #5
          Based on some reading I've done recently, I'm honestly shocked the loan was declined.

          On a somewhat related note, I bought a 2018 Honda HR-V recently and did it all through the dealer (I have to test-drive a vehicle before buying it). Sister and hubby also bought a vehicle, but did everything online and did not test-drive the vehicle first.
          Last edited by Irving Patrick Freleigh; 08-17-2020, 05:25 PM.
          Knowledge is power. Power corrupts. Study hard. Be evil.

          "I never said I wasn't a horrible person."--Me, almost daily

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          • #6
            The sales side of Enterprise Rent A Car isn't bad either. I got my car through them in 2016. I got to test drive the 2 main cars I wanted to try, limited color selection which is of no matter as long as I could get something I could live with, and they gave me $1000 on the 98 Rav4 I turned in with nearly 300,000 miles on it. Did NOT expect a penny for the Rav4!

            I love my car. It turns on when it's supposed to. It hauls everything I need it to haul. It turns ON when I need it to!

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            • #7
              Quoth Irving Patrick Freleigh View Post
              Based on some reading I've done recently, I'm honestly shocked the loan was declined.
              I work at a small local bank, and we seem to be more conservative than most other lenders. We really look hard at what is the largest loan (and loan payment) you've ever handled, how long have you made the payments, and whether or not anything else on your credit shows something close to that size of loan.

              We get bugged by the dealers late at night because my bank lets all the local dealers call the underwriting department directly. And we're open WELL past 5. Apparently this is not something most banks do, but it helps my small-sized local bank get a greater share of the car loans than we might otherwise without that direct line to the dealers. Even if it also means a dealer may call to argue a denial with 4 different underwriters.

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              • #8
                Back in 1997 when I bought my last car (still driving it) I got a pre-approval letter from my credit union. It was for way more than I paid for my car, but I wasn't about to pay more for a car than I did for the mobile home I owned. I was pre-approved for 30K, but spent only 8K. Since I'm still driving the car I think I got a good deal. *You know when they try to up-sell the "extras" like an extended warranty or anti-rust coating? I bought the extended warranty, but as far as the anti-rust coating was concerned, I lived at that time in an area where there was only very rare snow (I lived there 32 years and it snowed twice, never enough to make a decent snowball) plus long summers. I pointed this out, and asked, "Do I really need that around here?" The salesman said, "You're right," and closed the folder.

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                • #9
                  Very first time I purchased a car (1983-ish) the interest rate through GMAC was 16%(?)
                  Someone from the dealership called me and said GMAC had declined to make the loan, but the dealership would - for 17%. I called my boyfriend, who said, "Tell them the deal is off, then." I needed a car, I reminded him, and he said, you're being taken. When I called the dealership back and told them I wasn't buying the car after all, GMAC had miraculously had a change of heart.

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