Dealers and Internet Loans

[**DONOTDELETE**]

I have been approved for a loan by E-Loan, the dealer is giving me crap about how long the check will take to get to me, he does not know if they can accept the check, and if they wire the money to your account it will take 10 days.

1) A certified check is a certified check.
2) I can wait another 10 days to buy this car or I can just by another type of car.

Why don't dealers do their homework about the internet loans and why should they care I did not do the financing with there finance company?

[Afty]

They want you to use their financing company because they get a fee for referring you. Simple as that.

If they're hassling you about your E-Loan check, tell them you're sure you could find another dealer that would accept it. That should get them off your back.

On the other hand, if they can get you a better rate through their financing company, there's no reason not to take it.

[Lord_Vader]

The dealers some times give me crap about using my Credit Union. My answer is "Well, if you can beat their rate, I'll finance with you." That usually takes care of them. :-)

[**DONOTDELETE**]

Do you really think that a dealer gets a referal fee for makeing you use their rates?...You are wrong. The dealership likes you to use their finances becaue then they can carry the loan. They make money off the interest just like the banks do. Except that the dealership will shop a rate for you. But a referral fee they do not get.

[**DONOTDELETE**]

Most dealers don't accept e-loan checks and many don't even accept checks from credit union's that are made out to the dealer and buyer together. Shouldn't be too hard to just go get a certified check from the bank should it? Lot's of e-loan companies are fly-by-night (not to say yours was) so dealerships don't like to take e-loan checks. Just too risky.

[Afty]

"However, dealer-arranged financing is probably not in your best interest. Dealerships make a great deal of their money on what is known as Back End business. A portion of back end profit comes from arranging the financing for the vehicles that customers have purchased. Dealer agreements with financing institutions are often structured so that the higher interest rate a dealer can get you to accept, the more money they make off the deal."
http://loan.yahoo.com/a/buying12.html

That's where I got my information. From that website, it sounds like dealers arrange the financing with a local bank and get a finder's fee for doing it. Is that incorrect?

[**DONOTDELETE**]

Strange. All of the Dealerships I have got this far in the deal have come to me and asked which Banks or Credit Unions do you do business with or could I check for pre-approval with. Like I said all of them have asked this question in one way or another.

Jason

[**DONOTDELETE**]

The difference between financing from a dealer and a bank or credit union is minimal. The dealer gets paid based on the interest rate, amount financed, and/or a flat rate for using the bank. It is very similar to a loan officer from the bank or credit union. They get paid the same. Thats why banks and dealers don't mind no money down because the longer you loan and the more you loan the more they make.

Banks and credit unions team up with dealers to get business they would normally have to spend mucho advertising dollars getting.

[Lord_Vader]

Originally posted by VQFanatic:
Most dealers don't accept e-loan checks and many don't even accept checks from credit union's that are made out to the dealer and buyer together. Shouldn't be too hard to just go get a certified check from the bank should it? Lot's of e-loan companies are fly-by-night (not to say yours was) so dealerships don't like to take e-loan checks. Just too risky.<font size="2" face="Verdana, Arial[/img]If a dealer wouldn't take my credit union's check, I wouldn't buy from them. Money is money.