My Auto Loan was approved for more than the price of the car? Help! First time buyer

2433 Views 7 Replies 8 Participants Last post by kfh000, 15 d ago

Drew Malhotra

Discussion Starter · Jan 5, 2015

Hey Guys,

I have an unusual question regarding my 2015 Ford Escape that is a little bit unusual.

I am buying a 2015 Ford Escape for approximately 28k and I had put about 12k down on the vehicle and I had to finance about 16k through my bank (Navy Federal Credit Union). I was approved at 1.49% but I found out that the dealership actually forgot to input a manufacturers discount so instead of 16k I have to finance about 14k instead. Problem is, I have a check from the bank for about 16k. I was wary about turning in the check to the dealership until they fixed the price down from 28k to about 26k. Since I've already gotten a good interest rate from the bank, will my change of information result in an unforseen issue. I apologize if this question seems a little dumb but this is my first time buying a car and I've never financed anything before. Any Advice would be helpful

Thanks for your help

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zig613

· #2 · Jan 6, 2015

I wouldn't give the dealership a cheque for more than what is owing for the purchase and wait for them to provide a refund.

First, make sure the dealership changes the amount owing on your bill of sale to the reflect the manufacturers discount. Then go back to the bank and have them to re-issue a new cheque in the actual money owning the dealership. If the bank will not readjust your loan, payoff the 2k right away, and at worst you have to pay interest on the extra 2 k at 1.49% for a few days.

Wade

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Bill_de

· #3 · Jan 6, 2015

1 You could go back to the bank and correct the amount.

2 You could keep the loan (great rate) and get the difference back from the dealer, before handing over your check.

If you choose option 2, you could take what you get back from the dealer and apply it to your loan. You could go right to the credit union, or just add it to your first payment.

On the other hand, if you have any high interest credit card debt, get the excess back from the dealer and use it to pay down your credit card debt.

You have options, but I don't see any problems arising.

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tbudjobs

· #4 · Jan 6, 2015

Another thing to consider if you didn't buy an extended service plan, go to floodfordesp.com (they sell the Ford service plans at much lower prices than your dealership is able to). You can select EXACTLY the plan, duration, and miles covered that works for you. If you took the extra 2,000 that would buy you one heck of a plan.

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bisjoe

· #5 · Jan 6, 2015

Actually, I have done that before, I took a check for the trade to pay off another car. You won't have to wait for a refund, they will write you a check for the difference when you do the paperwork, then deposit it and send to your credit union toward the balance.

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AbamBarani

· #6 · 16 d ago

I'm curious how you resolved this issue? I recently came across the same issue, and I'm desperate. I don't know what I should do.

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Clackonsum

· #7 · 15 d ago (Edited)

I've been in a similar situation before, where I had a check for a trade-in, and the dealership simply wrote me a check for the difference during the paperwork. You won't have to wait for a refund; they'll sort it out right there. Once you receive the check, you can deposit it and send it to your credit union to put it towards the balance.
By the way, I recently discovered a Mortgage Broker in Cottingham who might be helpful when it comes to mortgages and loans. It's always good to have reliable resources when dealing with financial matters.

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kfh000

· #8 · 15 d ago

My CU issues the check as a not to exceed number and then you fill out the amount. Later they calculate the payment on the amount loaned at that rate and term.

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