Is the car dealership trying to screw me?
 

I bought a Monogram a three weeks ago. I had them run the loan through my bank. On my paperwork, it says my bank. Today in the mail I get thing from Fifth Third bank telling me to make payments to them for the loan. Definitely not my bank and from the looks of it I want to stay faaaaaaaaaaaar away from that bank.

Are they trying to scam me / is this a common scam? Did they just mess up? Has this happened to any of you?

I would say contact the dealer and see if they Inputted something wrong as well call your bank to see if they have anything on file.

On the paper work I would imagine you have an agreement number or some sort to reference

Yep, first check with the finance person at the dealership.

Next check with your bank.

Your bank may have sold your note to another financial institution. But they should have notified you.

Then again, it may be a scam .....:iono:

I hope you get it straightened out soon.


humfrz

Another question that pops up is why pay so soon? Isn't it like 45 days before you make a payment?

First payment requested by this other bank is due approx 45 days after the purchase date. After looking at the dates, I realize I bought this car about 3 weeks ago, not 2.

Banks often sell off their loans but I've never heard of one getting sold before the first payment.

With home loans it happens all the time. In fact, it happens prior to the closing even. Some banks and financial institutions do not service the loans. They hire other companies who then service the loans and that is where you would make your payments to.

I would call your bank prior to calling the dealership. Do you have the original note, etc?

Your dealer likely has an agreement with the bank to offer loans at competitive rates and farmed it out to them. They probably made more money this way, and you still got your interest rate.

Nothing says they have to finance it through Toyota Financial.

If your payment and interest rate are what you signed up for, why worry? Call your bank, regardless.

I went to the dealership and they admitted fault and will move the loan over to my bank at no cost to me. Yay! Still furious they did a bait and switch on my loan though.

Because I like my bank and having the loan through my bank is much easier for managing it.

How was it bait and switch? Sounds like they made a clerical error, and fixed it immediately. I'm not seeing any evidence of bait and switch.

Yeah, sorry, but dealers pull fast ones all the time. It could have been a clerical error or it could have been the dealer trying to get a kickback from one of their preferred lenders.

I just don't give dealers the benefit of the doubt anymore. It is a shame that a few bad ones ruin it for everyone else.

Actually, there's a good reason to take out loans somewhere other than where you keep your money.

When hard times come and one cannot make payments on the loan, it's better that the institution is NOT the one keeping your money. They can find ways to take it, against your will, when you fail to make payments on the loan you have with them.

If you do not keep your money with the same people from whom you borrowed money, the lender cannot TAKE IT from you, can they? The other bank where you keep your money is NOT going to give it to them.

It's just safer this way.

See how that works? :eyebulge: