No, it`s not a scam, but in bad judgment, it can be a very bad deal. The vast majority of merchants only make a cash delivery if they are very, very confident that it works. Most of the time, that`s what they do! The bank will list the loan as “pending at level B,” which gives the trader the information he needs, at what interest rate he should use. They will continue to sign and send to customers with 5.99% or whatever authorization is pending. If finally the bank wants the approval of the loan, 9 times of 10 it is to the set where it was up and everything is in order. Ask the dealer what`s going on. Just ask, empty spot, is this loan fully approved or is it still outstanding? And if you don`t get a definitive answer there, pay attention to a spot delivery form when you go through the papers. If the form is available, leave the signature. Tell them you`re still going to buy the car, but you want to wait for confirmation that the loan has passed before bringing the car home.
If you wish, you can terminate the signing of the documents so that the dealer gets it on their books, but leave the car on the lot until you receive confirmation that the loan is approved. This will save you a lot of headaches if it doesn`t pass. But there`s once in 10 times when it doesn`t work. An experienced and responsible financial manager will have a good eye for this and will know which agreements are not identifiable. Even the best are sometimes thrown for a loop, and that`s when a customer gets that dreaded phone call. It is interesting to note that deals where someone has a high beacon score, but limited history are the hardest to find. This often happens with young people just getting started – they have some well-paid credit cards and maybe a student loan or something about their history, but nothing else. Her beacon score is above 700, but her story does not show that she was ever responsible for paying off assets worth tens of thousands of dollars.
Banks will often refuse such customers, usually to the surprise and anger of the trader`s financial department. That is one of the best contributions I have seen on this subcommittee. I have spent almost 10 years in IR, and it is absolutely accurate for every point, and the information is very clearly transmitted. “Cash delivery” is a technique used by car dealers to get you to take charge of the delivery of a vehicle immediately after you have agreed to a car contract. But be warned: just because you park money and drive out of the dealership with a new vehicle doesn`t mean you can keep driving. Sometimes a delivery to the spot can be an accident. A CFO makes bad phone calls and signs a customer ignorant of a bad interest rate or a bad appointment. This usually happens with customers with less perfect credit. First, I would like to stress that not all cash deliveries should be considered fraud and that not all traders should be considered misleading. Delivering a vehicle to a customer is a daily process at car dealerships across the country. A good R-I manager does everything in his power to approve the deal before committing to a cash delivery, because he will not be paid if he does not do the trick and he is normally the one who has to make the call to retrieve the car from you. A cash delivery becomes a scam if the dealer tells you that you are authorized for a car loan at a set interest rate and term.
However, he knows absolutely that there is NOT a WAY that you will qualify for the loan in written form.