have a quick car financing question.....

bell · bell's Garage

michelle just bought a vw jetta (from this thread i'm 2/3 german in the driveway now....)
papers were signed, done deal, the loan was approved with just her signature.
they called us today and said that they want to put me as a co-signer for her loan.......
WTF........the deal is done and the papers are signed, is this common practice?
are they scamming us somehow? i just paid my 911 off and was hoping to buy another next year after we get situated in florida.....is this going to affect that purchace?

equality72521 · 03-31-2008, 01:51 PM

It's a done deal, don't do it if you don't want to.

Porsche_monkey · 03-31-2008, 01:53 PM

Of course they want to. They'd like to charge you 18% also, but you didn't sign up for that.

It is to their advantage, no harm asking right?. If the deal is truly done, tell them to get lost. And tell them you have alternate financing, same rate, and you are more than willing to switch.

bell · bell's Garage

we're happy with the financing, the loan is through wachovia.
now michelle is giving me **** because i'm questioning it........wtf

how is this going to affect my future loan for another 911 when the vw loan is still active? i've never co-signed for a loan before......

Porsche_monkey · 03-31-2008, 01:59 PM

All the more reason not to co-sign. Co-signing could/will affect your borrowing ability in the future.

bell · bell's Garage

my understanding is that financial institutions will allow one loan per registered vehicle, the title is in michelles name only.....meaning as long as our credit is good i shouldn't have a problem with the second loan................... is this correct? that is my only concern

Porsche_monkey · 03-31-2008, 02:11 PM

It is not a second loan, it is someone else to pay up 'IF' Michelle defaults. If they agreed to make the loan without you co-signing there is no reason for you to do it. Plain and simple.

You CAN do it if you want, and it will likely make no difference. Michelle will pay off the loan as scheduled and you'll never see any ill effects. But you shouldn't let the bank jerk you around. My guess is they made a mistake, an oversight, and they are trying to clean up the paperwork, or improve their position after the fact.

Why should you accept a risk without compensation?

bell · bell's Garage

that's what i figured.....i just got off the phone with them and the "problem" was he entered her income incorrectly, did it per week not per month like he should've.
and if michelle defaults i'm going to have to pay for it anyway as she's my wife LOL

i'm going to at least get a tank of gas out of this

thanks guys.....this board continues to rock

Porsche_monkey · 03-31-2008, 02:17 PM

Yes, I was going to mention the spousal thing. You are likely on the hook regardless.

The answer is obvious. She needs a second job.

bell · bell's Garage

Quote:

Originally Posted by PBH

The answer is obvious. She needs a second job.

werd up LOL

Porsche_monkey · 03-31-2008, 02:23 PM

And apparently she needs earn in one week what she presently earns in a month. My guess is that would solve the 'buy-a-new- Porsche problem' for you also.

Zeke · 03-31-2008, 02:24 PM

Don't know OH laws, but in CA if the loan docs were signed and the deal went down, it's down. You sure they weren't just after you on the title as one of the registered owners? I see no problem with that.

tinkerbell · 03-31-2008, 03:25 PM

Quote:

Originally Posted by bell

werd up LOL

ahem, would you like to switch commutes dear?

bell · bell's Garage

hater LOL

Steve Carlton · 03-31-2008, 06:35 PM

I would think things would be the same in CA as OH. In CA, they can ask for a co-x, but you can refuse and they can take the car back. They'll be the losers, as they'll have a rollback- a used car instead of a new one (assuming it was new). You don't get to keep the car if they can't get the financing done, but you have them over a barrel as they don't want the car back. Maybe the can get financing somewhere else and maybe they'll have to lower the price of the car or buy down the rate to make it happen.

If your wife wasn't going to go on the Porsche loan, then it hurts your ability to qualify if the Jetta loan goes in your name along with hers. Anything you finance together won't matter.

kstar · 03-31-2008, 07:13 PM

Google "spot delivery" or "spot delivery scam".

Best,

Kurt

bell · bell's Garage

already done, i compared everything number to number and matched perfectly identicle to the original deal.
the finance guy explained what he did and it makes a little sense, but if they come back again with "a problem" our attorney (michelle's father) will certainly get involved.

after a google search on spot deliveries scams....interesting stuff....

911Freak · 03-31-2008, 08:36 PM

Bell~ here's how you get thru any questions or issues that come up about the Audi payment when your ready to buy the Porsche..

Your wife pays the audi payment every month, photocopy the cancelled check, bring in 6-12 months of these cancelled checks in when you are getting your financing lined up for the Porsche purchase...9/10 Lenders will accept the cancelled checks as proof that "she" is making the payments and the car is "hers" not yours even though your on title & Insurance..

You'll be set... I worked in auto finance for years in a previous life and my best friend is a current finance mgr and this is how it's handled...

Enjoy!

If you have any questions about incentives-dealer cash etc. just PM me and I'll get you the low down...

Jason

RANDY P · RANDY P's Garage

I'm wondering if they are after more rebate?

If Bell becomes the primary borrower on the deal then they probably qualify for a better rate.

If you have to sign, get your FICO information and make them reprice your rate and payment based off your better FICO.

As far as any lenders are concerned, you aren't a co-signor you are a co-buyer. There is no difference. Whatever you do, if you know you have better credit make them get you a better deal on the financing or tell them to cram it up their a$$.

rjp

911Freak · 03-31-2008, 09:17 PM

The primary borrower has the higher fico, so yes, if Bell's fico is better and bumps to a lower rate bracket then yes, get the benefit..I doubt this is the case unless his wife has bad credit..

Sometimes they'll bump the rate with one of these lame excusses to get paid off the "reserves" from that higher rate even if it wasn't required by the financing bank!

That's why I always say: get your financing together before you go shopping or buying...even if they are offering 0% rates..b/c there is no such thing, all it is , is a rate buydown by the dealer/manufacturer or bank..

When you have the financing pre-approval they can't pull these last minute surprises....