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[Urgent] Issue with Credit Union Financing - Please Advise

3K views 12 replies 8 participants last post by  Carl Abrams 
Finally my Ascent came. Along with excitement it brought some issues.

I already got a financing pre-approved from my credit union. Although rate is not superb, I trust them to be transparent. I will be making 30-40% down payment directly to the dealer. Dealer suggested a personal check for down payment. Credit union requires a purchase agreement to issue check for the financing part and can even overnight it.

I spoke to dealer today. He said I can't pick-up the car unless the two checks clear.

Alternatively he suggested going through Credit Union Direct Lending, which may tap into my credit union. I heard interest rate may be a percent higher. It will also mean a new credit pull which seems unnecessary.

Yet another option suggested by dealer is, if my CU isn't linked to CU DL, then he can do "either or" (or some such thing) wherein I can take the car, but sign-up something to the effect that if I don't give them money or checks clear in a week, automatically Subaru's financing will be used to give me a loan. This seems a little risky and it appears it will be a credit pull (right?). I am worried if it will be some form of yo-yo financing!

Also, I am not sure if I want to purchase and then leave the car with the dealer while waiting for the checks to clear. I am traveling next week so it will be at least a 5 day delay. Scratches, test drives what not. What recourse will I have then.

What is the normal process when one finances from an external lender? How one pays and when one takes the car?
What would be the best way to handle this situation?
Please advise.
If the dealership gives you an options contract, they are most likely to run your credit before they do that and virtually sell you the vehicle at the Subaru - Chase 3.49+ rate. You get 7 days typically to get your CU to send the check to the dealership. In which case the dealership financing does not take effect and your CU loan takes effect. Their goal (shady) is to sell, so they will likely not give you the keys until they do this. Yes credit runs twice. But bureaus don't ding more if the purpose is same in the inquiry for 30 days. But yes, they will be hard inquiries.

Regarding dents and scratches, yes I went through anxiety for two days, all turned out fine in the end. Good luck..
 
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