[Chuck_skyline]

Hi - I’m eligible for the military incentive via PenFed membership so I’m using non-BMWFS financing. I’ve been pre-approved by DCU and opened an account over there about 1 week ago. I expect my car should be ready for pickup by EOD Friday.

The DCU auto loan officer walked me through the options to fund the loan at the time of delivery:

1. Finalize paperwork and they will send a check to the dealer via FedEx. They would also email a copy of the tracking + image the front/back of the check to the dealer.
2. Send me the check ahead of time and I bring it with me to the car delivery

The CA is saying that option 1 would force them to hold the car until they receive the physical check. DCU says that they do this all the time and the dealership should have no issue releasing the car before the check is received. What is the normal process? Should I push back on the dealership or push the lender to wire funds or send me the check ahead of time?
Thanks

[TurtleBoy]

I totally understand the dealer's position. I think most folks opt for #2 and take the check to closing.

[Melbourne_X5M]

Take the check with you. Different dealers handle it differently and we get to play the game according to their rules. Thus, take the check with you and swap consideration for consideration to complete the transaction.

[Protocol_10]

Originally Posted by Chuck_skyline

Hi - I’m eligible for the military incentive via PenFed membership so I’m using non-BMWFS financing. I’ve been pre-approved by DCU and opened an account over there about 1 week ago. I expect my car should be ready for pickup by EOD Friday.

The DCU auto loan officer walked me through the options to fund the loan at the time of delivery:

1. Finalize paperwork and they will send a check to the dealer via FedEx. They would also email a copy of the tracking + image the front/back of the check to the dealer.
2. Send me the check ahead of time and I bring it with me to the car delivery

The CA is saying that option 1 would force them to hold the car until they receive the physical check. DCU says that they do this all the time and the dealership should have no issue releasing the car before the check is received. What is the normal process? Should I push back on the dealership or push the lender to wire funds or send me the check ahead of time?
Thanks

Most dealers won't release a vehicle until they have money in hand.. and for good reason. This is because they have been burned from customers who actually didn't have a check, were unable to get an approval through their bank, changed their mind, or just lied in order to take the car on an extended drive.

Just bring the check with you to the dealership for mutual peace of mind

[5pacey]

Yea what DCU guy says makes no sense. From the dealer's perspective, no check = no payment. Its as if you were selling a car to someone and they told you to give them the car and wait for their check in the mail.

PenFed CU, Navy Federal CU always send checks to me, which I then bring, fill out, sign and hand over to the dealer. The check is made out to me and has a place that requires me to fill out the dealership info and VIN number of the car.

[richardcooper]

Originally Posted by Chuck_skyline

Hi - I’m eligible for the military incentive via PenFed membership so I’m using non-BMWFS financing. I’ve been pre-approved by DCU and opened an account over there about 1 week ago. I expect my car should be ready for pickup by EOD Friday.

The DCU auto loan officer walked me through the options to fund the loan https://fitmymoney.com/bad-credit-score/ at the time of delivery:

1. Finalize paperwork and they will send a check to the dealer via FedEx. They would also email a copy of the tracking + image the front/back of the check to the dealer.
2. Send me the check ahead of time and I bring it with me to the car delivery

The CA is saying that option 1 would force them to hold the car until they receive the physical check. DCU says that they do this all the time and the dealership should have no issue releasing the car before the check is received. What is the normal process? Should I push back on the dealership or push the lender to wire funds or send me the check ahead of time?
Thanks

For good reason, the majority of dealers won't release a car unless they have cash on hand. This is due to the fact that they have been burnt by clients who, in reality, didn't have a check, couldn't acquire their bank's clearance, changed their minds, or just lied in order to utilize the automobile for a long trip.

[brad_saggy]

I agree that option 1 isn't fair on the dealership, but curious how option 2 would work. Do banks issue checks to the buyer just like that? What stops them from misusing the money on the pretext of a low-rate "auto loan". Or, do they issue the check in the name of the dealership and also verify some purchase documents to begin with before issuing the check?

[Shllshck]

Originally Posted by brad_saggy

I agree that option 1 isn't fair on the dealership, but curious how option 2 would work. Do banks issue checks to the buyer just like that? What stops them from misusing the money on the pretext of a low-rate "auto loan". Or, do they issue the check in the name of the dealership and also verify some purchase documents to begin with before issuing the check?

In my case, I have a blank check from credit union. There is a set approval amount, it can only be cashed by an authorized dealer, and on the check, forgot if on the front or back, the VIN must be entered. So when my car arrives, I write in whatever amount I want financed plus the name of the dealership.