What happens when 2nd H dealer can't find loan??

[Eclipse1]

I booked a used vehicle(non-passenger) in early august @ 55K from a reputable dealer.

vehicle age is under 3yrs. despite higher than normal interest rate, i agreed to the deal cause it's something that I need for business use.

 

now after about 1month+ later, dealer called said unable to get loan at decent amount, only able to get 30k MAX.

 

There is NO way I'm able to fork out 20k cash and the dealer is asking me to find my own loan. Although I check a few finance company but without a bank giving approval, finance company not loaning.

 

In this case, I like to check with fellow motorists here, what are the choices do I have??

 

I going to ask my deposit back if they die die cannot get loan in the range of 50k.. Do I have a case against them??

Since they can't secure a loan for me but during the neg time, they say No PROBLEM... they work with Hong Leong, DBS, UOB, many many banks...

 

help needed..

 

thanks

Edited September 26, 2008 by Eclipse1

[Rayoh]

The problem only comes after you signed on the dotted line. Before you sign, everything anything whatever also no problem...

 

Go thru the sales contract/agreement thoroughly. Read the fine prints! See if there is any clause that say deposit non-refundable.

 

Which in many cases, there is... So your deposit is more or less goners.

 

Suggest to Negotiate with the sales exec peacefully, see what can be done.

 

Word of advise.... Always read the fine prints even if its gonna take you an hour to finish. Anything you feel not right, make them strike it out & countersign. Anything you want, make them write it down. Some 2nd hand and PI dealers

 

How do i know? based on previous experience

[Modykoh]

try GE money...

[Leepee]

This means that ALL the banks are valuing your vehicle WELL BELOW its selling price.

 

Most likely the delear is selling you an overpriced car.....or maybe you have really bad credit ratings with the banks!

[Sony]

Shd have done a quick check with the banks before signing.

 

If you can't do the loan yourselves, see if there's others in your family that can help you. or be a Guarantor

 

BTW, care to reveal the type of car you are looking at?

[Sony]

oh.. you are on the roll recently.

 

Hitting on the right note

[Rayoh]

yea... agree with bro leepee.

 

which model/make you getting? Its 3yrs old and you bought at 55K? If it is a van, i think it will be more worthwhile if you get brand new ones.

 

coming back, if so many banks not able to approve your loan of 50K, i think the rest will be equally difficult as well.

 

well, maybe GE money can do miracles.... no harm trying bro..

 

Worst scenario, negotiate with the sales exec and get back whatever deposit sum if possible. gd luck bro

[Nkps]

go look for finance company rather than bank.

 

2 possibility here,

 

1) like our inhouse NUS pee-nor-keo said, value of the vehicle way too higher than market value.

 

2) likely you got too much bad debt with banks (credit card etc etc)

 

if is 2nd one, try those bank with no link to credit bureau.

 

Should be able to get back your deposit if they fail to secure a loan for you.

 

Seriously, if it's a van that you are buying at $55K, must as well get a brandnew.

[Typhoonz]

Did you get a reason from the bank on why they cannot approve you loan?

Edited September 26, 2008 by Typhoonz

[Eclipse1]

good to hear some valuable views! thank you very much..

 

its a VW Bus 2.5 litre with 11 pax capacity.. its price is lower than a Merc Vito of the same age/capacity... when new(in '06) the VW bus was around 85K, vito in the range of 90k, now Vito 99k..

 

although Merc of the same age only have around $1000 more in OMV.. although OMV doesn't matters in Buses/Vans during ..

 

55k for a Bus may sound expensive, but with all the things lumped in, 2 months warranty(unheard off in 2nd dealer), new set of tires, new 6mths road tax, inspection.

the bus itself have auto sliding door on both sides,full sitting for 11 pax, Tiptronic with 6spd, 400nm torque , ABS w EBD/ASR, air-con for rear pax, sun-blinds for rear compartment, cruise-control, alloy rims, foglights, all leather seats. I find the price acceptable.

 

GE money deals with individual only right? not company.. vehicle will be registered under company name.

 

will be settling with rep next week, banging tables not my style.. peaceful talk I hope.. dont wish to waste the deposit..

 

hope to hear more views..

Edited September 26, 2008 by Eclipse1

[Schneider79]

Is the vehicle under your company's name ?

[Nkps]

nowadays bank dun give reason one.... and they are very very cautious lately, be it home loan, reno loan, car loan or whatever shiit loan

 

maybe TS can try TAI TONG LEE, and some unknown finance company like AH ONG FINANCE or MINAH FINANCE.

[Iziz]

GE does loan to companies too, so its an avenue for u to explore.

 

I assume there is no black/white stating tat if loan is not approved, the deposit will be refunded?

 

Just to highlight, the banks r indeed taking a more cautious stand towards lending, so it might not be fully ur "tai chi" tat the banks r not lending. If they r a reputation company as u mentioned, they shld be refunding u ur deposit, but if they're not, no pt talking so much also liao.

[Chrispie]

try sing investment... not bad. But ultimately depends on your income also lah..

[Ccssgm]

Ask the Dealer Look for High Loan Finance

Interest Rate will be Higher

[Vyap]

not sure what 3 yrs van.....u buying. bank are not dumb.....it just does not worth market value for any bank to finance $55K for 3yrs van. ..it really dubious...is like a scam...asking for $55k loan...then get cash for $XXXX amount out of the van loan.... oso yr credit rating....income level.... check around $55K you can easily get a NEW Van...

[Eclipse1]

Is the vehicle under your company's name ?

 

yes going to be under company name..

[Eclipse1]

thanks.. will check GE money on monday..

 

Isaac, what happen to normal case of buying new car? when loan amount is short? buyer top up to match selling price?? or cancel purchase with refund??