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Buying a used vehicle from the dealership with my own financing

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Hi all,

I went to a dealership last night for a car that I love and have been waiting for to pop up in the Market for a long time. I received my own pre-approval financing through a CU with 1.5%@48 months. After 2 hours, we finally negotiated the price down to what it was advertised online. When it came to the contract, they wanted me to sign the contract with their financing terms as a back up in case my own financing fell through. They explained that once my financing is confirmed, then the contract I signed would be terminated and I would sign a new contract with my own financing. I am questioning the dealers motives on forcing me to sign a contract with their financing so they can receive a kickback. Is it normal to sign two contracts?

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Is your CU cutting a certified check? Seems sketchy - there are clauses that state you will be responsible to secure any financing on the single contract. Not understanding why there's a 2nd contract in place. 

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Go back to your CU, get the financing, show up at the dealer with a cashier's check from your CU, drive the car away without any backup financing mumbo jumbo.

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They're lying thieves.

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I would never sign a financed contract with the dealership in advance. You can always do it as a last resort, but did they atleast match or your beat CU's offer? I highly doubt they would beat it...

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Unrelated - but what CU offered you that rate?

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so my sister did penfed and honda made her do the same thing

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They are basically going to run your credit so they can get a few extra $$$

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DTASFAB said:   They're lying thieves.
  
Oral modifications to written contracts aren't worth the air they're voiced in.
Only what's in ink on paper matters, whatever they say is just sales talk.

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Did I mis-read - it took you two hours to negotiate the price down to what it was already being advertised at?

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It's standard at some dealerships to be sure the car is sold one way or the other. Since you are comfortable your financing is solid, decline the dealer financing and instruct them to cancel any hard pulls since hopefully, you did not authorize that. Is there any dealer prep or is the car ready to drive off the lot? Just make out a sales contract, give them a modest deposit and come back with your credit union financing. The credit union will want some details on the car you are buying. Rightly so. That should be in the sales contract that you can show them. Also talk to your insurance people or one of them will buy insurance for you .. usually not at the best terms or not enough insurance for liability.

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Glitch99 said:   Did I mis-read - it took you two hours to negotiate the price down to what it was already being advertised at?
  Therein lies the issue.  They know the OP is an easy mark.  He shouldn't have spent more than 5 minutes "negotiating".   He should have handed them a check for the advertised price and told them to get the paperwork finished up.  Instead, he let them push him around.  Now they know he's either naive or desperate to buy that particular car.  Neither is a good position to be in.
 

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mckenziejmcclure said:   Is it normal to sign two contracts?

I fell for this in my early 20's. I had CU financing, but it was a Sunday. They made it sound like it was no big deal to drive the car home and pay on Monday. I signed the "backup" financing. I got the check from the CU on Monday, and was told, "too late. We already financed you." It was lunch time.

I played hardball. The bank that did the financing was local and small. I was lucky to get the loan guy on the phone, and told him about the CU. About 30 minutes later, the dealer was calling me asking if I still had the CU check because my financing "fell through."

Just know that if you sign that paperwork, they will probably use it. For me it was a big deal because "new" was a different rate than "used." I couldn't just use the CU check to pay off the 30-minute old loan and expect that it wouldn't affect the rate.
  

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mckenziejmcclure said:    After 2 hours, we finally negotiated the price down to what it was advertised online. 
  
Kenzie, you did what?

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mckenziejmcclure said:   After 2 hours, we finally negotiated the price down to what it was advertised online. 
Why did it take that long? Test drive the car, show them the advertized price online. Try to get them to work with you for a better deal via their own financing (beat CU offering or match + sweeten the deal otherwise). What took 2 hours to get them to give you a price they advertized online. Was it advertized online by a competitor and they didn't want to deal at that price?

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Don't sign a contract with terms you don't want. You have financing, they can either believe you or not.

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VicVinegar said:   Don't sign a contract with terms you don't want. You have financing, they can either believe you or not.
  "But the salesperson seems so nice and even talked about their kids.  Salesperson is definitely a great guy and only getting to help me out.  Must all just be standard stuff...  I'll just sign in each spot where they point.  Actually reading or understanding the contract's boring and unnecessary." - Most people buying cars, and 99% of people buying/selling a house with a Realtor

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