Hi all-

I went ahead and put down my $6000 deposit for my '03k S2k on Sunday and it's pending the loan approval.

I had a couple of questions:

1. How long does this normally take?
2. Is the dealership supposed to CASH my check before the loan even gets approved? Before I even get the car? To me, that just doesn't seem right.
3. A friend told me that in the past when he normally bought a car on the weekend they let him pick it up right away. Before the bank even approved it....

Edited by author: Financing was done by Honda.

Perhaps Pierceman can shed some light on the proper procedures since he works for Honda?

Edit #2: Please read my last post on page #2. I will NEVER go to Power Honda in Costa Mesa AGAIN.

 

1. It shouldn't take more than a few hours!! It took me 10 minutes to get approved.
2. To me it doesn't sound right for them to have deposited it already. It's a down payment right, the deposit should have been around $500-$1000.
3. No experience with that one..

Good luck on your car, what color?

 

1. Normally the approval process is fast. You can buy a new car and be OTD in less than two hours, the paperwork is usually what takes so long.

2. The check cannot be cashed until you get the car. I have written a personal check before, and picked the car up at the same time, there would be no way they could cash it right then and there.

3. Depends on the buyer and the dealer. If they trust you, off you go, if not, they don't want to be taken for a ride.

Who is the loan through? Nothing says it would be Honda Finance.

 

It's Silverstone.

1. Well, it was Sunday, so I guess banks were not open. But 3 days seems kinda long to me. Plus they didn't return my messages I left. The salesman who I do know, is cool, he did all the follow-up for me.

2. Yeah it's a downpayment. Checked my funds today, I was $6,000 less. I don't think I spent that much this weekend. (Had a good weekend, only spent like $50). Have not received the car. The car says sold on it. Although my check has been cashed. The finance dept. offered to give me my money back if I wanted, they said I should have an answer later today or early tomorrow morning.

Let's just say I'm not very happy with the dealership's service so far. The salesman was cool, the finance dept... If this continues, I will post the dealership name.

Loan is thru Honda.

 

I would write on the check: This check void unless financing and rate is approved by customer. To be honest with you, I would never write a check for anything more than $500. to hold the car. Once the deal is approved and the car is delivered, than make out the check for your 6 grand. You might also consider charging your $500. deposit so that you could recover if they try to pull a fast one. If you want, tell them you'll substitute a check instead of the credit card at time of approvel. Just my 2 cents. -Ken
Also, don't take possession of the car unless your financing is approved.

 

That is very good advice HI. I'll have to remember that next time. My $6,000 was meant as a down, not as a deposit. I gave it to them in good faith that I would've received a call the next day as they said. I did not get a call by noon like they said, so I called them around 2pm. They said they were awaiting the bank's approval.

Only reason why I'm holding back on saying the name of the dealership is because my friend's dad works there (although he's out of the country until tomorrow --- Maybe I should've waited heh). Maybe someone at the dealership is reading this?

 

It doesn't matter if it was Sunday. A credit check and loan approval is an automated process that can be done anytime 24/7.

Did you take delivery of the car already? Was it new or used? If you already took delivery, then you need to use caution now. They have your money, and you have the car. They can say something like "Sorry, your loan was rejected, so now we have to change the contract.... we're going to offer you a 5 year loan at 19% interest... etc."

There is some kind of cooling off period in California law, but it's only a few days, I think. You need to go back to that dealer in person , ASAP and get it straightened out.

Good luck.

 

[QUOTE]Originally posted by CBeyond
[B]It doesn't matter if it was Sunday.

 

Yeah, I agree with CBeyond, you need to go find out what the hell is going on. It could be that they're shopping around to get you the best rate or there could be a problem. Go and check it out. -Ken

 

What is being said is not 100% accurate. The dealership can CHECK your credit 24/7 however they cannot get approval until they talk to a bank (ever heard the term: Banker's Hours?)

They probably ran your credit and found that it's CLOSE as to whether or not you will be approved. Now, they have to wait for final approval, which can take days. If they cannot get you financed through Honda Finance, then they will shop you around to various lenders to try and get you into the car. This can take even MORE days.

Someone hands a clerk a check, they are going to cash it.

A fully refundable hold deposit of $500-$1000 is not uncommon. In the future though, do not give them your downpayment until you get the car.