How secure is financing a used car?

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wicked1234

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Dec 22, 2007
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Well basically I got myself into a big situation.

How secure is financing a car? I did some research on the company that I'm buying the car from and apparently they're known for scamming their customers. The previous company was closed down for not transferring titles to buyers. Basically they would keep the cash and leave the buyer without title to the car, which was often still held by the previous owner's lender. I impulsively gave them a $500 check, and I dont want to lose this.

How secure is financing in terms of transferring the title over?
 


"People who bought the car couldn't get the title because the people who sold the car usually had a lien holder, and the buyers had gotten a loan,"
 
The issue i guess is him taking me to small claims for the scratch on the bumper i caused while test driving. I still want the car assuming financing is safe, can anyone shed some light? Plus i still want the car..
 
so i should tell him to fuck off? He has no proof that I scratched the car right even though i verbally said it, he can't prove in small claims?

This guy set me up. He purposely strategically alligned the car next to the curb, with strategically placed stickers all over the windshield making it impossible to see. When I turned right I scratched the bumper. There was no way for me to avoid hitting the curb without turning the complete opposite direction before turning right....

what should i do. He's shady and known for scamming everyone.
 
FUCK that dealer.

You have more shit on him than he has on you. DO NOT go for in house financing with them. Get financed by a large institution so the large bank will have the title in hand and when you pay off the loan they will mail it to you.

Try to see if there is any changes on the price they can get fucked up the ass for trying a bait and switch and have their dealer license revoked. Not sure how they haven't had it revoked yet though.
 
Dude.. cancel the check, find another car, tell this guy to go fuck himself. Sounds like a really pathetic scammer and a not-worth-the-risk scenario.
 
mitoman said:
FUCK that dealer.

You have more shit on him than he has on you. DO NOT go for in house financing with them. Get financed by a large institution so the large bank will have the title in hand and when you pay off the loan they will mail it to you.

Try to see if there is any changes on the price they can get fucked up the ass for trying a bait and switch and have their dealer license revoked. Not sure how they haven't had it revoked yet though.
Click to expand...

I"ll get it financed by US bank. Thank you for the good post. They were operating under another company before and got shut down, but there's a new one. As long as the bank has full liability and I don't lose $$ then I'll feel safe...
 
Even if they cash the check, it should be used towards them selling you the car so it would be considered a down payment. If they refuse to return your money they are obligated to sell you the car.

Basically either you get the car financed by the bank of your choice or you get your money back.
 
got it, not much can go wrong if being financed by a big bank right? Im gonna cancel the check anyways and just go through financing. the only purpose of the check was used as a security to prevent others from buying it.
 
You can't go wrong with big banks. They have an automated process and if the dealer wants to ever work with them again they will follow all the rules.

Also, if you will be canceling the check why not buy from another dealer? If they are so shady the car might not be that great... (odometer fraud, unreported accidents, etc). Not trying to discourage you just be sure you check out the car inside and out before buying from a dealer that has a bad history.
 
wouldn't a mechanical breakdown warranty cover potential damages? This is a very new 08 with 45k miles. Odometer fraud shouldn't be a problem.

Im canceling the check so he doesn't cash it if the bank decides this guy is fraud and no problem. by the time he realizes the check is canceled we will have found out whether we should do biz with the guy.

This guy is not really known for bad quality cars, but who knows. all the complaints have been title transfers.
 
There are a ton of questions to be answered before we can give real educated answers:

What city, state are you in?

Do YOU have insurance on another vehicle that is current? (E.g. your car just broke down so you need to buy a new one. Is your old insurance still active?)

MY understanding is that if he takes you for a test drive, he is liable for it (depending on the state. Can only speak for Texas).

From all you have posted so far I agree with the folks above: Cancel the check and go to your local bank for financing. Even better, find yourself a smaller credit union if you can join one. There are much more personal and while they at times have tougher regulations, they can work magic if they want.

Sounds like you are dealing with a sleazy dealership.

Go to a reputable dealer or find someone that can buy at an auto auction. Have a ton of suggestions but it all depends on your location and situation.

If anyone needs one in the DFW area let me know and I can point you to a couple reputable folks I know (No, I don't get a commission lol).

Last thought and a bit of advice from an old guy: Buying a car is the WORST investment you can make. The minute you drive it off the lot it looses money.

For $500 or even better $2,500-$3,000 you can find a 10 year old Chevy Tahoe that is rock solid with about 100k-150k miles on it. Buy from private homes that are 1st owners if you can. Sometimes it takes a bit of time but look at craigslist etc.. You'd be surprised at what you can find.

There are lots of nice, used vehicles that will get you from point a) to b) to be found.

Then use the $200-$300 you would have invested in a 'better' vehicle per month and put it in the bank or other investment account and let it draw interest for you. Pay any repairs out of that account. You'd be surprised how quickly you'll have a nice chunk of change sitting there.

However, it's not the instant gratification route...
 
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