Information I wish I knew when I got my Marauder.

[Crazieboutamerc]

While a few on here remember that I had a 2004 Mercury Marauder DTR. That I loved. purchased it 5 years to the day I joined MM.net. :):)
Well long story short I got a call a week later saying that the financing fell through and I need to bring it back. This happened to me twice and also happened to my oldest son and then future daughter in law. All of them Colorado dealers, both I worked with are two supposed reputable large dealers.

Just today thanks to an article I just read. I was screwed out of my Marauder.
A little FYI

http://www.msn.com/en-us/autos/buying/how-to-avoid-one-of-the-shadiest-used-car-buying-scams-there-is/ar-BBvra7G?li=BBnb7Kz

I decided to keep a copy of the article for my information. Just in case it happens again

Tim

[Bluerauder]

Damn thieves and frauds !! Is there nothing that these scumbags won't stoop to in order to steal a buck. bastards !!

[RF Overlord]

Sorry to hear that you and your family were scammed...hopefully you'll find another MM and now you know how to defend yourself next time.

[Jtrip]

I had something like this happen years ago when I tried to buy a truck. I was young and my credit was not good. Had my Dad there to help with the negotiations but he did not co-sign. I put $1000 down and the interest rate was 16%. My Dad complained about the high interest rate and they claimed they could not come down and they were not adding anything to the interest rate to pad their pockets. Signed papers and drove off the lot. Had the truck for a long weekend and showed my family and friends. The following Tuesday they called me and said they needed $1000 more down or the deal would not go through. I didn't have the $1000 cash to give them so I brought back the truck. Had to have Dad drive 45 miles to pick me up from the dealer because we bought out of town.

Never realized this might have been a scam to get a bigger down payment and possibly have me sign for a higher interest rate without the Dad around. It's funny how people will prey on young, naïve buyers. I've learned a lot about buying cars since then and feel totally comfortable in a dealership. Best thing to do is get financed before you walk in and don't get new car fever. There will be another Marauder out there. Find a finance company that will approve you for an older car and put a lean on the title until you pay it off. Lightstream is a good one for older cars a Credit Union wont touch.

[justbob]

One of the oldest tricks in the book!

Next time just ask them for the dealerships address so you can make your contracted payment..

Trust me when I say that they'll call back with good news.




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[MyBlackBeasts]

For a used car, don't finance at the dealer, get pre-approved at your bank. This is much better for the purchaser.

If you have your account at a credit union you will usually get a better loan deal on a car.

I needed a car, wanted a 48 month loan, my CU pre-approved me for a 48m term at 1.9%.

Found my MM, came to terms on the price, salesman says ok, I'll give this to finance guy to get this done.

I say, no need, I'm pre-approved and hand him the bank letter.

He says they agreed on the price believing they would be financing it.

I said sorry, I never said you would & you didn't ask.

Their guy contacted my CU, finished the paperwork the next day & I picked the car up.

Paid some extra $ on it once & a while and paid it off in 44 months, cost only $600 in interest to finance the car.

[sailsmen]

From MSN - "Seller sells a car to Buyer and the credit is extended by a Bank. But most finance agreements actually say that the Buyer agrees to make monthly payments on the car to the Seller and that the Seller will assign the financing contract to the Bank." Never seen this before.

Is this common for people with bad credit?

[Ambitious1]

Most car dealer contracts in many jurisdictions are between the Buyer and the Dealer. When the bank financing comes through, the contract is assigned or transferred to the bank and the buyer then has to make the payments to the bank. However, if the a contract has been made and the bank doesn't provide financing, the Dealer is still contractually bound to accept the monthly payments from the buyer. Of course, the Dealer doesn't want this.

This is similar to when a bank sells a mortgage. The buyer may have a mortgage with a homebuyer, however the fine print in the mortgage states that that the bank may sell the mortgage to another bank, credit union or other mortgage company. When the bank sells the mortgage to bank 2, then the homebuyer must make the mortgage payments to bank 2.

Many people are also unaware this also often happens with gym memberships. When a person signs up for a gym membership contract with an automatic debit from their bank account, the gym will often assign the contract to a financing company. The financing company will take out the monthly membership fee out of the gym member's bank account. If the gym member wants to cancel the contract, there is often an early termination fee and the gym member has to contact the financing company, not the gym. The really corrupt gyms will assign the contract as a "loan" for the full membership cost of the one-year or two-year contract and assign it to a financing company for the gym member to pay off the fraudulent "loan" every month until the one-year or two-year contract is completed.

It's always important to read the fine print, however most people don't when they're young, inexperienced and don't know how contracts (and contracts law) works.