I really need help with this. We applied for and were approved for an RV loan for 8.74% for 144 months on 6/25/07. The RV was delivered to our home (we purchased from an RV wholesaler) on 8/13/07. We signed the contract and assumed everything was final. (it always has been in the past). Now out of the blue we get an email from the dealership that says we now have to pay 1200 more down, and our interest rate jumps up to 11.24% for 120 months. (thats about $70 more per month). They claim the 8.7% approval was only good for 60 days, and that they could no longer finance us because of a supposed drop in our credit score. I knew nothing of this 60 days they were talking about. No one ever told me this, or I may have chose to go elsewhere for financing. I signed the contract believing it was binding and now they want more money and a higher interest rate. We have had the trailer for almost a month now and gone camping for a week in it already. This is so unfair! Please help!
The contract is a standard retail installment contract and security agreement. It gives all the trailer info, VIN#,our names, the interest rate,finance charge, payments, and so forth. And yes the lending company (GEMB) by the way, is checked at the bottom of the contract in a little box that says "assignment" and is signed by the person that delivered the RV to us. Thanks everyone for all your answers so far!!
Auto finance is what I do for a living and this sounds like the dealer did whats called a spot delivery.
This is when the dealer thinks they can get someone approved but really does not have them approved with a bank yet, so they go ahead and sign a contract normally without a banks name on it.
Then when they do get the people actually approved, they sometimes have to redo the paperwork because they guessed wrong on the interest rate.
There normally is a spot delivery agreement which gives the dealer the right to do this.
Does, your copy of the contract have a lenders name on it?
If so call them and ask yourself what happened.
You should see about getting your own money and simply pay the dealer.
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November 25, 2008 at 12:41 am
What does your contract say?
Actually, it is not uncommon for stuff like this to happen. If the original bank declined your application, they may have had to go to a different lender.
Your first thing should be to contact the original lender (not the salesperson) and ask for specifics. Have you checked your credit rating recently? You should always check your credit before applying for a new loan to make sure it is accurate. Almost 50% of all credit bureaus have errors (such as erroneous late payments, old accounts still open, etc). These things lower your credit score.
Did you get any letters saying your credit was denied? If the original application was completed on the 25th of June, then you should have already gotten a rejection letter. If not, I would demand that the dealership be able to prove what they are saying. If you did not receive a rejection letter (which lenders are required by law to send), then the dealership may be playing games.
References : -
November 25, 2008 at 01:05 am
Auto finance is what I do for a living and this sounds like the dealer did whats called a spot delivery.
This is when the dealer thinks they can get someone approved but really does not have them approved with a bank yet, so they go ahead and sign a contract normally without a banks name on it.
Then when they do get the people actually approved, they sometimes have to redo the paperwork because they guessed wrong on the interest rate.
There normally is a spot delivery agreement which gives the dealer the right to do this.
Does, your copy of the contract have a lenders name on it?
If so call them and ask yourself what happened.
You should see about getting your own money and simply pay the dealer.
References :
Finance Manager for a car dealer for over 7-years. -
November 25, 2008 at 01:48 am
For starters, DO NOT give the dealership another penny. Look in the Yellow Pages for a lawyer in your area that gives free initial consultations. Take your RV loan paperwork in and have him/her look at it. Sounds VERY fishy to me. Usually, once you sign the contract it's a done deal. I've never heard of a 60-day approval period, and even if it was only for 60 days there's only 49 days between 6/25/07 and 8/13/07, so you should still be good. The bottom line is this: If you signed a contract for 8.7% and a certain amount of money down, the dealership can be forced to abide by that contract, even if they have to finance the purchase themselves. That's why you need to get a legal professional to look over your loan paperwork.
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14+ years experience as a paralegal specialist -
November 25, 2008 at 02:03 am
Do you still have your loan papers that you signed? I had a car dealership call me and do almost the sme exact thing. They told me I had to give them $500.00 more dollars, I told them too bad and never heard from them again. Go over your papers and if it doesn't say anything about the raise in interest rate after 60 days, I would tell them to bug off! The thing about the credit score drop doesn't make any sense as after you buy a car. house etc…your score goes up down and all around. Would they contact you 2 yrs later and say, oh by the way, your credit score went down, your interest and payment are going up. No, it doesn't work that way.
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