As the economy makes it tougher for dealers to make car deals, and post profits to their books, more and more auto dealers are bending the rules to bend the rules in order to make a car deal. We have heard of dealers delaying down payments (hold checks) for up to a month or more. We have heard of dealers cutting checks to the customers (dealer rebating). We have even heard of dealers printing fake W2 forms and pay-check stubs.
At WA Auto Credit, we do not do business that way.
We have found that delaying the down payment on an auto loan leads to a significantly higher rate of loan default. Depending on the lender, your first auto loan payment can be between 30-45 days from the date you bought your car. If the down payment is delayed 30-days and your 1st monthly payment is due only 2 weeks later, it can often be difficult for people to afford the car payment.
In addition, there are legal issues with delaying the down payment. The dealer has a signed dealer agreement with the lender. Most lenders stipulate whether or not the dealer can delay the down payments on the loan, and how long the dealer can delay the down payment. There is also the question as to whether a delayed down payment violates the Truth in Lending Act. Since we are not lawyers (disclaimer) we will not elaborate on that point.
As a consumer, you need to go with your instincts. If a dealer is asking you to lie to a lender in order to get your loan funded, or if you feel the dealer is doing something unethical to sell you a car, you need to walk away from the car deal. There are reputable dealers out there that can put your needs first and help you by a car while playing by the rules. The auto loans at WA Auto Credit will be processed by a reputable dealer near you. In fact, our main office is in Olympia, WA.
We proudly serve the greater Seattle area and offer guaranteed credit approval.