My MA just told me that they do not accept e-loan...
Has anyone else been told that too?

 

I used lendingtree and the dealer accepted it without issue. Actually, the whole process was quick and smooth.

In their defense, they may have had troubles with E-Loan's previously, so they no longer want to accept them.

However, I'm willing to bet it's a way to force you into financing through them.

-Rob

 

Something sounds fishy.

I'm not familiar with E-Loan. Is it a check from them made out to both you and the Dealer?

Just the way you describe it, it sounds like they only want to use their in-house financing like a local bank or Mini Financial.

I'm not saying that it's the case with your dealer, but sometimes it could be possible that the rate that "they" quote you is actually HIGHER than the rate you qualify for. So, that additional money that YOU pay is actually PROFIT and the dealership gets it or a portion of it back from the financial organization.

That's not illegal (maybe it should be) but dealers want to make a profit on ANYTHING that they sell. And it sounds like (maybe - just to keep any attorneys happy) they are SELLING you the loan.

Just for fun, ask for their REJECTION of your pre-arranged financing in writing and see what happens.....

But then again (hehe) I may be totally wrong (just to keep the attorneys happy....).

 

Where is your dealer? Last week I got approved for a loan through E_LOAN, I'm just waiting for my dealer to call to take delivery. I hope I don't need to go another route for the financing.

 

Long Beach MINI wouldn't take my capital one blank check, but they ended up getting me a better rate through MINI financial, so I didn't complain

 

Yep. My dealer said the same thing. They do not honor Internet rates they said. But if you had a check from e-loans to pay off the car when you get it then I can not say where they would have any say in it, but I didn’t feel like going through all the paper work. And the rates where close enough that I felt o.k. with it. Most places in general have rules about not dealing with Internet pricing. I tried to buy a guitar like that and they were not sure if they could honor it, but as I was walking out the door they said that they would. But I have a feeling playing hard ball with the mini dealer right now will not help you much since most dealers can sell your car anyways if you do not take it.

 

Yes, he did tell me to try MINI finance.
I had no idea they get to say where we should get a loan from...
As long as the rate is competitive I guess I should have no issue but what if they can't match what I can get from e-loan or capital one ? Can they still force us to go with MINI ?

 

My dealer has taken my Peoplefirst.com (Capital One Auto Finance.com) blank checks with absolutely no problems...in fact they expect them from me.

They have never rejected them or push me towards in-house or BMW sponsored financing (This dealer has excellent business ethics)

However, they did tell me that they have had problems with E-Loan checks or rather BANK DRAFTS. There is a big difference between a blank check and a Bank Draft. A Blank check works like a personal check and it clears fairly quickly. Bank Drafts are withdrawal authorizations and often take longer to clear than regular blank checks. Most auto dealers are very reluctant to accept bank drafts because they can take longer or not get paid at all.

So BEWARE! When getting financing from the dot coms, make sure you get a BLANK CHECK not a BANK DRAFT.

Dealers that don't accept legitimate blank checks from the dot com financing companies have VERY QUESTIONNABLE BUSINESS PRACTICES. Dealers get kick backs when they provide in-house or manufacturer sponsored financing to thier customers, so they obviously lose money when they accept blank checks. Dealer's finance depts and business managers bring in the bucks so they will push you and feed you the most incredible stories as to why you should get THEIR financing instead of the one you obtain outside of their dealership.

For instance if your dealer rejects your Capital One Auto Finance blank check, take your business ELSEWHERE. Don't patronize these jerks by getting their own financing packages.

The customer is the one in control, not the business manager.

 

my dealer accepted e-loan with no hesitation. all very quick and easy.

good luck.

paddy

 

Thanks (again), Cooper4us, for explaining the difference between a blank check and a bank draft.
I'm telling you... this forum is the ultimate wealth of information... :smile:

I agree with cooper4us that if the dealer refuses to accept blank check from place like Capital One, I must question their integrity...
I just hate the fact the dealer knows if I walk, I have to endure another long wait to get my MINI!

 

For me MINI finance was fair ,and BMW still has a stake in the in the car

 

Cooper4us is absolutely correct. Many dealers will not accept E-Loan because it's a hassle to get paid.

E-loan provides what is called a site-draft. That site-draft comes with many restrictions. If the restrictions are not met exactly, the draft won't be paid. Any car dealer pays interest on every car they have on the lot untill they pay it off. If it takes 30 or 40 days to get paid from E-Loan, they are losing money. Therefore, they simply won't accept that type of payment.

The Capital One checks are just that...checks. They can be deposited in the bank and cashed within days of receipt. There should be no problems with those types of purchase instruments.

Good Luck.

 

Interesting you got that response AGOKART - our dealership accepted my e-loan check with no hesitation. :???: Of course, it was an actual check with the dealership and my name on it - no weird site-draft. I'd say in dealing with e-loan companies, demand an actual check.

$0.02

 

The trick is to finance with the dealer, however, have them write it so you have a week (or whatever) to bring in the money. Get the money from E-loan and pay it off before the time their loan kicks in.

I have done this with credit union loans as the dealer doesn't like to just let the car go without any financing. if the credit union does not give me the loan then they already have it in place with their finance co.

Earl

 

>>Interesting you got that response AGOKART - our dealership accepted my e-loan check with no hesitation.

When the finance manager did arrive, he stated that our credit report was such that the best BMW could offer us was 12.5%, and that even that rate was not certain-- but if we signed in the right places on the contract he had in his hand, he could still "let you drive it home tonight, and we'll see what they say in the morning."

We asked what would happen if BMW did not approve the 12.5% rate. He replied that they "would then apply through some local banks thay use for second-chance financing." We asked what those rates ran- he replied "18-21%." I asked, "And if those applications are rurned down, or we decline the terms?" "Then, we take back the car, and deduct milage and any repair costs for any damage to the car from your deposit."

Yeah, right. Get me to leave with the car, then in the morning, they have carte blanche to gouge me any rate they want, bounded only by the limits of state usury law. I suspect that they'd have rung me with "more bad news" in the AM if I'd bitten on that one. I have read about Nigerian 419 scams, but had never expected to have anyone to try to pull one on me in person!


To give an already long story a somewhat shorter ending, we were quickly approved by Capital One Auto Financing for a principal amount almost double that of the price tag of the MINI we ordered, and at a much lower rate than the dealer's dubious offering. Since the car was already sitting on the lot, and the dealer's "5-day grace" clock was ticking, we had Capital One overnight a "blank check" to us, along with all the documentation- including the max approval amount. We went back to the dealer, knowing that with another couple thousand dollars down, we should be able to leave with not one, but two new MINIs.

The dealer finance rep balked at the "blank check", and told us it was "no good." He fed us a line about how "the green ones are only a draft and not guaranteed funds," and said they only accept "the red ones or the blue ones" from Capital One. We had with us not only all of the Capital One documents, but also W-2s, and all of the other stuff we had submitted to Capital One as part of their approval process! That, plus an additional check from our bank account for an additional $3500.00 down toward the car. $4500.00 cash down, plus the Capital One draft and all of the supporting documentation to verify Capital One's underwriting decision...

...and then came the ultimate insult. The finance guy said that even with all that, we could not have the car that night. Can you belive the gall? He was willing to let us go a few days before on just our signature, and the original $1000.00 deposit. Now that he wasn't getting the interest in his pocket, $4500.00 and proof of insurance was not enough for us to drive off the lot with the MINI. Once more, my wife demanded a reasonable explanation for how this made sense to the man across the desk from us- and got none. Literally. He merely repeated his BS line about green ones, red ones, and blue ones. ) We were in and out of the dealership in less than an hour, with 0% fianancing for 72 months. The Ford rep said when he ran us through for approval, we had one of the best credit scores he had ever seen. Go figure. Guess who's getting my business for my next new car purchase?

When MINI USA called us for an after-sales survey, I referred them to my wife, since she had kept a running journal of the entire episode from the night of the first pickup attempt- every phone call, fax, and meeting. She forwarded it to them, and told the MINI USA caller exactly what she thought: great car, but if we had known what we do now what we would suffer to get it, we would never have ordered it.

I guess the dealer did hear about it, since we got a call from their "Customer Service Advocate" to ask what they could have done better to get a "5" as a survey response regarding our purchase experience. I suggested to the caller that if she really wanted the answer to that question, she should visit my local Ford dealer.

_________________
Midnight- '03 indi blue MCS, learning all the bad habits of a proper British car from Rusty- '75 MGB

 

My MA warned me before I even started shopping for loans that they don't accept e-checks. I have heard that about MANY of the dealerships. Too many times they've been burned, I think. Lenders like People's Choice and Lending Tree, although competitive, have caused MINI some headaches.

I chose my credit union, who offered a great rate and used ELECTRONIC BANK DRAFTING, which someone else warned against, and my MA greedily accepted it. The transfer was completed once the dealership sent proof that the Title had been transferred into my name, and then MINI received their moolah and I drove away in my car!

_________________

 

My dealer (Global Imports Atlanta) wouldn't accept an e-loan check... (from e-loan.com) because they had been burned by them before apparently. They would, however, accept my e-trade bank "blank check" after the F&I guy talked to one of their managers on the phone.

It was a moot point, however, as they got me approved through Chase Manahttan for a rate that was slightly lower than the best offer I had gotten (I tried SEVERAL places) previously.

For the person who go screwed by their dealership: Next time you go car shopping, have a copy of your 3 BUREAU report (make sure it's all 3, they CAN be vastly different) IN HAND when you go anywhere. I had a Toyota dealership try and screw me as I was looking (almost bought a used Audi TT there) saying I only had a "580" credit score and would be gouged for financing..... when I produced a copy of my 3 bureau report showing 3 scores all hovering around 690-700 he backtracked VERY quickly and I didn't buy a car there (good thing because the MINI was my next, and final, test drive).

 

As a result of the MINI dealer buying experience, we ordered copies of all 3 major bureau reports, and reviewed them carefully. I intend to continue to do so annually, and every time I am preparing for any future large financial commitment. We watch it all very closely now.

Burn me once, shame on you... burn me twice, shame on me!



_________________
Midnight- '03 indi blue MCS, learning all the bad habits of a proper British car from Rusty- '75 MGB

 

>>My MA just told me that they do not accept e-loan...
>>Has anyone else been told that too?
>>

My CO dealership accepted my E-loan check.... Good luck

 

I just stumbled across this issue lately. I am looking into financing and the dealer told me they didn't like capital one autofinance blank checks, e-loan checks, or any internet bank for that matter. It feels like serious strong-arm sales tactics to me...'finance through us or else.' Just what I want to hear from someone I'm trying to start a relationship with. I hope it's just the finance guy and not the whole ownership that is dismissive of my right to find the best deal.
I was also told that traditional financing (a fixed loan for 4 years) is probably the worst thing for me, and the guy hasn't even seen an app from me yet. Okay I admit I only have two degrees and have only a couple courses in finance and accounting, but I usually think I'm pretty sharp with money...I must be way off base with my 'help myself, not the dealer' approach.

I realize the net is an evil thing for any brick and mortar business trying to compete against the vast open marketplace, but you can't hide your head in the sand and hope it will go away if you tell every customer that places like lendingtree and eloan are evil and out to rob them...

very disappointing.

 

This reminds me of the awful experience I had when I bought my Mercedes. I had a blank check from Bank of America arranged via E-Loan. I had even checked with the salesguy in advance to make sure they would accept it. He said reluctantly that they would. The F&I guy gave me a really hard time. I was like, look, it's a check from freakin' Bank of America for goodness sakes. Why do you think this is a problem? They let me do it, but then THEY refused to fax all of the documentation to E-loan that was needed to finalize everything. I think they were hoping it would expire and then they could drag me back in and gouge me with their financing. I even offered to come to the dealership and fax everything myself since they were having such a hard time doing it. Finally at the last minute after repeated phone calls from me they took care of it and it all worked out. But I really hammered them on their survey and wrote a very long detailed letter to MBUSA and the general manager of the dealership to complain about their shady practices. This is why car dealers have the reputation for being a bunch of snakes. I expect MINI to give me a hard time for paying cash when I go to pick up my car.

 

My experience was pretty painless, but I called ahead so I could bring a cashier's check from my credit union. The finance guy asked where I got my financing and the rate, said "I can't beat that!" and I was on my way.

 

Normally it takes 30-60 days for the dealerships to get funded on those .com loans, and Cap1 financing is a little shorter. There is some issues that a normal customer does not know in auto finance world. If you get a blank check from your bank or credit union, and especially if the lender is local, the dealership should not have any problems, because they will get funded easily, if all paperwork done correctly, max 3 days. But loans through .coms take their time, and sometimes charge the dealer hidden processing fees.

at Cap1s case, there is couple of practices. Cap 1 offers great variety of financing from A tier customer (excellent credit rating) to 2nd chance financing. First scenario, if you have real good credit, things go smooth with the dealership, you just fill the check and hand it to the dealer, they get their money back, remember again, takes a long time. 2nd chance financing, thing might go sideways, some stipulations such as employement verification, income verification might require and the dealer has to deal with an extra paperwork to get funded on their sale. Trust me guys this process, half the time, goes sideways. When the dealer submits all these paperwork, Cap1 or a similar company lets say, investigates the truthness of the paperwork.... such a headache sometimes, and honestly at the end customer (buyer) hurts the most. So if you have a Cap1 or another .com check in hand and you know you have good credit, let them know, if they don't understand, have them call the lender.

So anyways, if the dealer offering you a higher interest than what you believe you can get, explore your options, go to your local credit union, or your bank and get a preapproval, then visit the dealer and tell the finance manager what they can offer for you. It works all the time, they will match the interest rate and even go a little under to earn your business. If they can't beat the rate, have them faz a copy of the buyers order with all necessary information such as year, model, vin...etc to your bank and have them deal with your loan officer. Things will go smoother and you won't have to deal with a lot of crap.

If you need more inside scoop ask Berky

 

It's unfortunate to hear that this is still going on. I had hoped that the incidence of this phenomenon had declined, since this thread was quiet for a while...



I am glad that people have posted about their experiences, though- it may be just the thing to encourage the next new MINI person to persevere in the face of F&I pressure!

 

I went through Lending Tree. Capital One gave me a fantastic rate, and FedEx'd me the blank check within 24 hours. I took the check to the dealer (I think it was blue) and walked out with the car in 15 minutes. I could have used the check to buy any car anywhere up to I think $70k, but I stayed with my MINI.

The dealer loved it, because to them it was a cash sale. They had their money in 2 days.

Steve