Auto finance advice

nrvna76

macrumors 6502a
Original poster
Aug 4, 2010
979
917
Just purchased 2 new to me vehicles. Traded in 2 as well. Signed all paperwork including financing with a credit union that the dealer utilizes. Now, 2 weeks later they tell me to call the credit union because they are having trouble with the financing. All they needed was to resign something because my wife’s name wasn’t printed on it..:rolleyes: but through that discussion I find out that the financing does not cover gap insurance, which the dealer said it did. I carried some negative equity on one vehicle (I know, stupid move but had no choice) so I wanted gap.

Dealer will not add the gap insurance that they said would be included. Will be an additional $350. And that I need to sign by Monday because I’m technically driving their vehicles, my trade-ins are already sold.

I did sign the purchase agreement, so can’t back out.

What would you do? Sign the financing and pay the $350 as it is not a significant amount? Find your own financing? Try to return the cars..?
 

Apple fanboy

macrumors Nehalem
Feb 21, 2012
32,761
22,612
Behind the Lens, UK
Just purchased 2 new to me vehicles. Traded in 2 as well. Signed all paperwork including financing with a credit union that the dealer utilizes. Now, 2 weeks later they tell me to call the credit union because they are having trouble with the financing. All they needed was to resign something because my wife’s name wasn’t printed on it..:rolleyes: but through that discussion I find out that the financing does not cover gap insurance, which the dealer said it did. I carried some negative equity on one vehicle (I know, stupid move but had no choice) so I wanted gap.

Dealer will not add the gap insurance that they said would be included. Will be an additional $350. And that I need to sign by Monday because I’m technically driving their vehicles, my trade-ins are already sold.

I did sign the purchase agreement, so can’t back out.

What would you do? Sign the financing and pay the $350 as it is not a significant amount? Find your own financing? Try to return the cars..?
I’d never finance a car. But I believe gap insurance is just another way they ‘tax’ you.
 

Tomorrow

macrumors 604
Mar 2, 2008
7,115
1,246
Always a day away
You can purchase gap insurance through your insurance company, or your credit union should have included it with your loan. I think the dealer trying to sell this to you, even though they didn't handle the financing, is a HUGE red flag.
 

vertical smile

macrumors 68040
Sep 23, 2014
3,934
5,138
What did you end up doing?

Many times, dealerships will give you a little extra off upfront if you finance using their banks, which in turn, typically has a higher interest rate.

On my last two vehicle purchases, I took the better offer with the crappy interest rate, and refinanced through my bank as a new car once I got a bill in the mail.

Depending on your situation, it may not save you a lot (although it saved me literal thousands of $$), maybe the little you save by switching financing would pay for the Gap, and stick it to the dealership too.
 

nrvna76

macrumors 6502a
Original poster
Aug 4, 2010
979
917
We ended up paying for the gap. The dealerships financing was just a different credit union than the one I typically use so the interest rate was no higher.

They would not budge, super annoying but I didn’t have the patience to fight anymore and my wife didn’t want to risk them towing her car back.

If it were just me I’d let them tow my car back and see what they would have done. Lol