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cryix47

I think I've fallen prey to a Spot Delivery Scam

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My Story....

 

 

On 12/29/2015 I went to a Honda dealership to purchase a 2016 Accord. The sales manager pulled my credit which was 574, but due to my good standing with Honda Financial, they were supposedly able to get me approved with 2k down at 10%. I drove off the lot that evening in a new car. I just needed to come back with the trade title signed by the co owner which was my grandfather and an additional 1k. I met with a different business manager and she talked about a credit freeze on Experian. I told her yes I have one, but the other two CBs aren't frozen. She then mentioned that she was working with another bank. I'm not sure what she meant by another bank. This whole deal sounds troubling to say the least. The dealership had the 30th and possibly the 31st of December to get the financing situated. I'm not sure what to think at this point. Should I call Honda Financial tomorrow to see what exactly is going on instead of going back to the dealership? I didn't mention the additional 1k because the business manager was a different one.

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My Story....

 

 

On 12/29/2015 I went to a Honda dealership to purchase a 2016 Accord. The sales manager pulled my credit which was 574, but due to my good standing with Honda Financial, they were supposedly able to get me approved with 2k down at 10%. I drove off the lot that evening in a new car. I just needed to come back with the trade title signed by the co owner which was my grandfather and an additional 1k. I met with a different business manager and she talked about a credit freeze on Experian. I told her yes I have one, but the other two CBs aren't frozen. She then mentioned that she was working with another bank. I'm not sure what she meant by another bank. This whole deal sounds troubling to say the least. The dealership had the 30th and possibly the 31st of December to get the financing situated. I'm not sure what to think at this point. Should I call Honda Financial tomorrow to see what exactly is going on instead of going back to the dealership? I didn't mention the additional 1k because the business manager was a different one.

Calling won't do anything since they won't tell you anything. They may just be looking for a better deal or the other deal fell through.

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Often times a finance department will look for better terms. For all you know they may have the 10% approved with Honda but be looking for a couple points lower. Or as BRBiz stated there may have been an issue with Honda and they are working on getting it done. Be patient.

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AHF response time is rather quick during normal business hours.

 

If you have a credit freeze and AHF wants to pull the frozen bureau, you MUST thaw it for consideration.

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All Bureaus have been thawed. Honda did call me yesterday to ask some verification questions about a FA on my CBR's is this a good sign? I know it's a good sign for a credit card approval.

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Called Honda Financial and the CSR said there was no account under my SS#. I'm not sure why a dealership would do something crooked like a spot delivery. Marv do you have any experience with spot delivery scams and what the outcome is?

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Honda Financial doesn't have anything on you yet because the dealership hasn't submitted the contract yet. Did you not read what MarvBear said?

 

Just call the dealership and speak to finance and ask directly.

 

You're sure quick the throw around the term "scam". You purchased a vehicle close to New Year's Eve. Yes, dealerships all over were pushing metal out the doors and getting contracts submitted so they can count the revenue on 2015 books. The captives and traditional lenders were probably short of staff that week - the week between Christmas and New Years is always slim in staffing at many businesses and especially 2015 since both fell on Fridays. The dealerships rely upon "spot delivery" to get cars out the door, and typically it's a transparent process to the customer. Now in your case where you have a lower FICO and your quoted rate reflects (10% when captives are offering 0% to 1.9% on top-tier customers) your FICO the F&I thought they could still get your papers done with the terms quoted or they wouldn't let you go home with the new car.

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Did you get the terms of your loan yet on your car? Just curious the outcome on your situation. I agree not to call this a scam when it is busy time of year and yes they are pushing out the cars and promising the world sometimes at the end of the year to make their #'s! It is a business after all.....

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I spoke to the Kia finance manager about the financing process. She informed me that she faxed over 4 months of my bank statements to Honda Financial and that I should know by tomorrow. I'm interested in the outcome as well.I was under the impression that getting another Honda Financial loan wouldn't be a problem because I have already had 3 in the past as well as a Chase auto loan for a Subaru and a loan from Santander for the Mazda3 that was traded in. I checked my Santander account and it hasn't been paid off yet. When I check the credit pulls database I don't see any approvals with a high 500s score, so I guess this is a YMMV scenario. :glare: :glare:

 

The Maryland Motor Vehicle Administration isn't too happy about this. I've already called them and they said that it's illegal for a dealership to do spot delivery and that they have attorneys that litigate such bad practices. I also was in touch with a Lemon Law attorney for free consultation and he said that it's illegal as well.

Edited by cryix47

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I spoke to the Kia finance manager about the financing process. She informed me that she faxed over 4 months of my bank statements to Honda Financial and that I should know by tomorrow. I'm interested in the outcome as well.I was under the impression that getting another Honda Financial loan wouldn't be a problem because I have already had 3 in the past as well as a Chase auto loan for a Subaru and a loan from Santander for the Mazda3 that was traded in. I checked my Santander account and it hasn't been paid off yet. When I check the credit pulls database I don't see any approvals with a high 500s score, so I guess this is a YMMV scenario. :glare: :glare:

 

The Maryland Motor Vehicle Administration isn't too happy about this. I've already called them and they said that it's illegal for a dealership to do spot delivery and that they have attorneys that litigate such bad practices. I also was in touch with a Lemon Law attorney for free consultation and he said that it's illegal as well.

Are you always this impatient?

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Did you get the terms of your loan yet on your car? Just curious the outcome on your situation. I agree not to call this a scam when it is busy time of year and yes they are pushing out the cars and promising the world sometimes at the end of the year to make their #'s! It is a business after all.....

Yes. I sign a Honda agreement which contained the APR, term and monthly payment. I spoke to the Kia finance manager who has been very nice to me. She didn't do the deal. It was another guy in the Honda part of the dealership. It's interesting that the finance woman in Kia is working the financing. I'm not concerned about her ability to get financing, it's just that a Kia finance person has taken over. She faxed over my bank statements to Honda yesterday morning and it's approaching 3pm in Maryland. I'm not being impatient, it's just troubling to me that this has happened to me. A new car purchase is the second most important purchase besides a house. That is why I'm feeling thrown off by this dealership.

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OP.. the link you provided is from the WANADA (Washington Area National Automotive Dealers Association) a sub-organization under the NADA. The law referred to clarifies the protections the dealer and the consumer have regarding un-assigned contracts (spot deliveries). Mostly it clarifies the dealers responsibility to the consumer and their right to the collateral should the contract between the two parties become "uncashable". Spot deliveries have always been legal in Maryland and to Marlyland consumers. You are getting highly incorrect information.

 

You need to slow your boat.

 

From what I understand.. you purchased your Kia at a dual branded dealership that happens to sell both Honda and Kia which affords this dealership access to Honda Financial and Kia Motors Finance. The Kia F&I Manager must have been off the night you purchased and the Honda F&I Manager was covering the other brand. It appears the intent was send your loan (finance your Kia) with Honda Financial and the Kia Manager must want to handle things as it's her job to work with Kia car sales. Even if your contract was sent the next day, there are alot of end of the month / end of the year car deals being made and there could be delays with funding and/or establishing your loan account. Calling the consumer line to have your account looked up was premature. In your case, the lender wanted supporting documents from you and those were provided to the dealer and forwarded to the lender. Nothing has been done "to you" .. they are doing this "for you".

 

Just wait it out. The F&I Manager hasn't given you reason to worry... all the phone calls to those third parties have.

Edited by fury1995

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OP.. the link you provided is from the WANADA (Washington Area National Automotive Dealers Association) a sub-organization under the NADA. The law referred to clarifies the protections the dealer and the consumer have regarding un-assigned contracts (spot deliveries). Mostly it clarifies the dealers responsibility to the consumer and their right to the collateral should the contract between the two parties become "uncashable". Spot deliveries have always been legal in Maryland and to Marlyland consumers. You are getting highly incorrect information.

 

You need to slow your boat.

 

From what I understand.. you purchased your Kia at a dual branded dealership that happens to sell both Honda and Kia which affords this dealership access to Honda Financial and Kia Motors Finance. The Kia F&I Manager must have been off the night you purchased and the Honda F&I Manager was covering the other brand. It appears the intent was send your loan (finance your Kia) with Honda Financial and the Kia Manager must want to handle things as it's her job to work with Kia car sales. Even if your contract was sent the next day, there are alot of end of the month / end of the year car deals being made and there could be delays with funding and/or establishing your loan account. Calling the consumer line to have your account looked up was premature. In your case, the lender wanted supporting documents from you and those were provided to the dealer and forwarded to the lender. Nothing has been done "to you" .. they are doing this "for you".

 

Just wait it out. The F&I Manager hasn't given you reason to worry... all the phone calls to those third parties have.

This purchase was for a 2016 HONDA not a KIA, but the dealership sells both Honda and Kia

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Honda would have rendered decision in final now. Why don't you simply call and ask the dealership Finance Manager whether AHF approved the contract as signed? Or if you're stubborn like me, go there in person, and don't budge till you get an answer.

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OP.. the link you provided is from the WANADA (Washington Area National Automotive Dealers Association) a sub-organization under the NADA. The law referred to clarifies the protections the dealer and the consumer have regarding un-assigned contracts (spot deliveries). Mostly it clarifies the dealers responsibility to the consumer and their right to the collateral should the contract between the two parties become "uncashable". Spot deliveries have always been legal in Maryland and to Marlyland consumers. You are getting highly incorrect information.

 

You need to slow your boat.

 

From what I understand.. you purchased your Kia at a dual branded dealership that happens to sell both Honda and Kia which affords this dealership access to Honda Financial and Kia Motors Finance. The Kia F&I Manager must have been off the night you purchased and the Honda F&I Manager was covering the other brand. It appears the intent was send your loan (finance your Kia) with Honda Financial and the Kia Manager must want to handle things as it's her job to work with Kia car sales. Even if your contract was sent the next day, there are alot of end of the month / end of the year car deals being made and there could be delays with funding and/or establishing your loan account. Calling the consumer line to have your account looked up was premature. In your case, the lender wanted supporting documents from you and those were provided to the dealer and forwarded to the lender. Nothing has been done "to you" .. they are doing this "for you".

 

Just wait it out. The F&I Manager hasn't given you reason to worry... all the phone calls to those third parties have.

This purchase was for a 2016 HONDA not a KIA, but the dealership sells both Honda and Kia

 

Mis-read the original post.. either way the rest applies.

 

Marv is correct, you should have a resolution to the application. Stay off the phone with third parties until you have an answer.

 

And unlike me, stop ignroing the important parts of the posts giving you advice. :P

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No dealer wants for a spot delivery to fall thru. They likely end up giving the buyer weeks of free use of a new car. Have you done your part with the rest of the down payment and the co-owner of the trade car signing off? Because the deal is certainly going nowhere without those.

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Still no financing set in place today. I'm beginning to get irritated. I gave them the title to the trade but the second 1k I'm holding until i get a firm approval. I'm not sure what's taking so long. I spoke with the guy that did my deal instead of the Kia finance manager and nothing solid is in place. I was told that having previous auto loans through Honda that are all in good standing would automatically get me approved through Honda Financial. This is a dealership outside of DC with high volume sales, so I'm still unsure as to why it's taking so long to get the financing done. I make ample amount of income, so I'm not sure what the problem is. Terrible way to start the New Year!!!

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Still no financing set in place today. I'm beginning to get irritated. I gave them the title to the trade but the second 1k I'm holding until i get a firm approval. I'm not sure what's taking so long. I spoke with the guy that did my deal instead of the Kia finance manager and nothing solid is in place. I was told that having previous auto loans through Honda that are all in good standing would automatically get me approved through Honda Financial. This is a dealership outside of DC with high volume sales, so I'm still unsure as to why it's taking so long to get the financing done. I make ample amount of income, so I'm not sure what the problem is. Terrible way to start the New Year!!!

What exactly did the F&I Manager tell you was the response from Honda Financial? Was you application turned down? Did they submit it to another lender for consideration? Was there any stipulations aside from your proof of income?

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Still no financing set in place today. I'm beginning to get irritated. I gave them the title to the trade but the second 1k I'm holding until i get a firm approval. I'm not sure what's taking so long. I spoke with the guy that did my deal instead of the Kia finance manager and nothing solid is in place. I was told that having previous auto loans through Honda that are all in good standing would automatically get me approved through Honda Financial. This is a dealership outside of DC with high volume sales, so I'm still unsure as to why it's taking so long to get the financing done. I make ample amount of income, so I'm not sure what the problem is. Terrible way to start the New Year!!!

What exactly did the F&I Manager tell you was the response from Honda Financial? Was you application turned down? Did they submit it to another lender for consideration? Was there any stipulations aside from your proof of income?

 

I didn't get a solid answer from the finance manager. When I initially went in on 12/29 I was told that I was approved because of 3 previous Honda Financial loans that were all in good standing, and a Honda Financial agreement was created in which both the finance manager and I signed. Then my file gets thrown around and ends up with the Kia finance manager who was working with another bank "Capital One". I spoke to the Honda finance manager that did the deal on 12/29 yesterday. He told me that he's now working with Santander and that I would receive a call today. No call at all! I went ahead and contacted WANADA about the situation and have someone working on the situation. Everything about this dealership is sketchy. If I go into the dealership I'm going to park the car on a different sales lot in case they try to seize it.

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If I go into the dealership I'm going to park the car on a different sales lot in case they try to seize it.

What will that gain for you? If they don't get financing for you, they take the car back, you get your trade back, and go your separate ways. It's not like National Lampoon's Vacation where they pushed the Family Truckster onto the Griswolds and crushed their old car before they could say no....

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Santander renders decision almost instantaneously. Literally as quick as you hit the page refresh button, they present a decision.

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