I'm preparing to make my purchase and was wondering if any of you that just went through this process has a line on a great interest rate, and for the longest period possible like 72 months, or more.

thanks

 

Be careful with the on-line loan places. They give you a sight draft, not a real check, which means it isn't any good until they've received all the paperwork they're after. They should take care of the paperwork BEFORE they send you the check, so all that nonsense is out of the way. Bottom line: no legitimate dealer will accept a sight draft for payment.

 

Can you expain that a little more, I have used sight drafts twice, no problem either time. Handed them the sight draft, drove the car home. That what my bank sent me so thats what I used..I think the dealers were as legitimate as any other.. Should I not use these in the future?

 

You go and get a loan on-line. They send you a sight draft, subject to you sending them proof of your annual income. You use the draft to buy a truck, and drive away happy, but you never send the bank the proof they required. The dealer accepts the check and deposits it, but the bank refuses to honor the check, so the dealer is out the truck. Do I want to be that dealer? No thanks. When we arrange financing for a customer, and the bank needs proof of income, you don't get the keys till we get that proof. Big difference.

 

Im sure there are bad sight drafts just like there are bad checks, but in my case I was preapproved by my bank ( a highly reputable financial institution ), I never had to document anything to them once I had the draft except the VIN and other details of the car I was buying which I did on the phone from the salesmans desk at the dealer.. You seem to be suggesting that anyone using a sight draft is some kind of shyster which is not the case.

 

I'm not suggesting that all sight drafts are bad, nor the banks that use them. But the bank should collect all the necessary documentation that they need from the buyer upfront before they issue the check. I know we all hate car dealers, but is it really fair for me to be left holding the bag because the consumer didn't fulfill their responsibility to the bank? I would either have to fight with the bank or chase the consumer around the country to get my truck back that wasn't paid for in the first place (dishonored check = grand theft auto in most states). To top it off, I wind up with a customer that's mad at me because I won't accept a sight draft that has conditions attached to it (conditions that have nothing to do with the purchase), because I won't let him take the truck until I know the check is good. When you drive off our lot in a new truck, I only expect one thing: to get paid. In some people's eyes, this makes us a villain (not anyone here, I'm just referring to people in general).

 

Mark

Based on your reply and explanation to grey77 I totally understand why your dealership will not accept sight drafts from customers. What may have generated bcjim''s response was the wording "no legitamate dealer will accept a sight draft for payment." He obviously has purchased vehicles from dealers using the sight draft payment method, but that does not mean that accepting sight drafts is a good business practice. I have seen individuals and businesses that would not release a vehicle or title to that vehicle paid for with a cashier's check or bank check until the individual or business received the funds from the issuing bank.The bottom line is your dealership, for good reason, will not accept a sight draft. If that is not acceptable to a potential customer, then they should look for another financial institution that will provide an acceptable method of payment or look for another dealership that will accept site drafts. When I get ready to buy my SD I will be in touch and you will not have to worry about disagreements over method of payment. Keep up the good work and don't get discouraged.

Randy

 

I shouldn't have made such a broad generalization as that. Obviously, we've had bad experiences with sight drafts, but that doesn't mean they're ALL bad. The consumer should check with the dealer FIRST before they assume an on-line financing source will be an acceptable source of funds. As I said, it's irksome for us when the e-bank expects us to do their work for them, especially when it's dropped in our lap at the last minute, and then we scramble to keep the sale from falling apart.

 

I hear where Jeff is coming from but have this to add:

I have purchased every vehicle in the last 15 years with a USAA site draft. One dealer said he wouldn't do it that way and I walked. My bank completes the transaction over the phone while I am with the dealers money person. This takes about 5-10 minutes and they are open 7 days a week. Very convinient and very secure for the dealer and ME! It also helps that my bank is also my insurance company. I love my Fords and my bank!

New F350 King Ranch V10 going to be built 8/23/2005, I CAN'T WAIT!

 

I used Capital One auto and got the check in the mail. It was too easy and not 1 single problem. All the paperwork is pretty much done before you get your check. I will use then in the future for sure. Just a thought..

 

I have used E-Loan 4 times in the last 5 years and I have never had a problem. If a dealer says they won't take, just walk away. When they see that you won't do it their way, they will deal with you. Stick to your guns. Never finance through the dealer!

 

Why? Because they get some kick-back? Dealers sometimes can get pretty decent rates. I checked with USAA and they offered 4.84% for 60 months w/standard mail-in payments. The dealer got it for 4.99% . Just curious why you would say never finance with a dealer.

 

I just bought my 2002 F-250 from a dealer and got 4.5% for 60 months. They matched the credit union rate I quoted them (note, they didnt ask me for proof!) and took care of it all on the spot. I was happy with them.

 

Is it feasible to handle e-loans this way - when you receive the draft, take it to your bank or credit union and deposit it into your checking account. When you have settled upon a price, write a check. Would that create problems for any of the parties?

 

i bought my truck forom a subaru dealer (o2 f250) cap one auto finance said theyd gie me 60 mo at 10.9% Local bank said 48 mo at 5.5 % subaru gave me 4.99% 48 mo