Financing Fell Through?

I'm betting it's not only some people having financing fall through. It's probably dealers aren't going the extra mile to get customers financed on Broncos. I have a very good credit score. But I, like millions of Americans, have outstanding medical bills that show up on my credit. On my last purchase I got turned down because they tried to say I had new medical bills showing up. Which I didn't. My dealer went out of their way to contact the bank, explain the situation and got the deal done. I am sure with the Bronco many dealers are not going that extra mile to get deals done. Simple reason??? They know if the customer gets turned down the Bronco becomes theirs to sell. With an astronomical ADM of course.

It could be something happened and their credit could've taken a hit. It happened to me this fall. My credit took a hit when I had to take out a personal loan. It wasn't bad until I paid it off early, and my credit dropped 37 points!!!!

Sdakotabronco

It could be something happened and their credit could've taken a hit. It happened to me this fall. My credit took a hit when I had to take out a personal loan. It wasn't bad until I paid it off early, and my credit dropped 37 points!!!!

I previously worked in auto loans and am now a mortgage loan officer, I’d bet 30% of people have a medical bill on their credit report(higher if they’re over age 60ish) and only 50% even know about it. And it DESTROYS your credit. I have a couple right now that have identical credit(all their credit lines are joint) except the husband has a medical collection for like $250… wife is at a 780 he has a 684. It’s disgusting.

OP, IMO anyone concerned should make sure to get pre approved from a local bank/lender. Especially because rates are going to take a pretty serious jump over the next few months.

NickP

I previously worked in auto loans and am now a mortgage loan officer, I’d bet 30% of people have a medical bill on their credit report(higher if they’re over age 60ish) and only 50% even know about it. And it DESTROYS your credit. I have a couple right now that have identical credit(all their credit lines are joint) except the husband has a medical collection for like $250… wife is at a 780 he has a 684. It’s disgusting.

OP, IMO anyone concerned should make sure to get pre approved from a local bank/lender. Especially because rates are going to take a pretty serious jump over the next few months.

Yup, as matter of fact, I would suggest shopping around your loan from the best rate as well. Ford Credit, for some reason, hasn’t got the best rates. Get pre-approval from a couple of others so you have a plan B.

Car lenders are tough these days. Partly bc so many defaults the last 2 years, which is the worst thing that can happen to a dealer. If lenders think dealers retail customers wont pay based on repeated down trends...lenders wont work with that dealer anymore, thus, dealer cant sell cars. As result many lenders now require kitchen sink to buy a car, almost like a home loan. No way. I refuse to buy a car that way. But that is where we are headed folks, harder to get car loans. My bronco is literally my livelihood and bc if this lenders were thankfully more willing to work with me.

I suggest if you foresee any lender and/or dealer issues. After your bronco has been built with a VIN number and on rail headed to your dealer...go ahead and lock in your loan BEFORE your bronco arrives. If you run into any walls, you have plenty of time to work it out and/or shop around before your bronco arrives. Loan payments wont start for another 45 days after you commit to the loan, during which time your bronco should arrive and its not only yours upon arrival but you also dont have to worry about any last minute surprises from your dealer i.e. ADM's. Especially if you failed to get a signed purchase agreement in the beginning.

NickP

I previously worked in auto loans and am now a mortgage loan officer, I’d bet 30% of people have a medical bill on their credit report(higher if they’re over age 60ish) and only 50% even know about it. And it DESTROYS your credit. I have a couple right now that have identical credit(all their credit lines are joint) except the husband has a medical collection for like $250… wife is at a 780 he has a 684. It’s disgusting.

Medical bills are not good. But I wouldn't go as far as to say they destroy your credit. Much depends on what FICO model they are using. Some take medical bills into consideration and some don't. Before my divorce I had several medial bills on my credit but still had a 790 score.

I will say this. It's amazing how much one single late credit card payment can kill your score. My ex-wife had a Victoria's Secret credit card. Had a very low balance. I handled paying all of the bills because she was totally incapable of keeping up with it. She had her card set up for paperless billing so I never got the bill and didn't know she had a balance. Her card went 30 days late and it dropped her score 27 points.

I would have agree to all of the above, there are plenty of reasons that people are forced into walking away from a very large purchase. I would say for most of us elderly fellas/ladies, our purchases started out small and we built up our credit over a long period of time. Our vehicles for most of us didn't price out over $27,000...... My most expensive vehicle that I have ever paid for was $38,000 and that was about 7 years ago, now I am at the point in my life where I can purchase a vehicle that is upwards of $54,000...... I also have my house paid off and that definitely helps. Now we have some wanting to purchase this vehicle that may be of somewhat a younger generation and have not established a higher credit yet, or may have a mortgage that will tie them down for a not so pricey purchase. Even for those of us up in our years still either have a mortgage or still paying on a vehicle, or just one small blemish on our credit report, can hurt a lot of us who want to take another step and make a rather large purchase. A lot of us that put in a Reservation/ Order didn't even dig into their credit report, ( I know I didn't) they saw an easy way to order a vehicle with putting down a $100.00 deposit, now when they go to pick up their vehicle they have a blemish or they have too much debt to be able to afford this vehicle and they are forced to walk away. I am sure that this is one of many reasons why people walk away, it probably happens more times than we think......

I guess I just don't understand why they wouldn't offer it to any of the other order holders in line prior to selling it to some rando off the street. I can't say for SURE that they did not do that, but it's definitely the way it seems.

nrlucas

I guess I just don't understand why they wouldn't offer it to any of the other order holders in line prior to selling it to some rando off the street. I can't say for SURE that they did not do that, but it's definitely the way it seems.

My guess is because if they offered a canceled order to you they more than likely will sell it to you at MSRP. However if they have a canceled order and they sell to the general public the Dealerships can add an ADM to that vehicle and make a large profit. I have heard of some dealerships selling their canceled orders to some of their order holders, but that is far and few in between.

BroncOitis

My guess is because if they offered a canceled order to you they more than likely will sell it to you at MSRP. However if they have a canceled order and they sell to the general public the Dealerships can add an ADM to that vehicle and make a large profit. I have heard of some dealerships selling their canceled orders to some of their order holders, but that is far and few in between.

Yeah, but the article states that they sold it to her at MSRP. I just feel like the folks who have been waiting for a year or more should get first dibs.

nrlucas

Yeah, but the article states that they sold it to her at MSRP. I just feel like the folks who have been waiting for a year or more should get first dibs.

I guess we could look at it this way, that was one Dealership that did right by the customer. I am sure that there are a lot more out there that would do this, but you would have to be with that right dealership to have this happen for you. There are more than likely more dealerships that will not run through their list of orders and sell you a Bronco that is similar or the exact build as you ordered, unless you just happen to drive by and see one out front for sale. Remember that customer happen to be in the right place at the right time, do you honestly think she would have a Bronco right now if she didn't happen to come across one on the lot.

I saw this article too... can't say it didn't make me a little jealous, but... good for her.

That said... I have like 10 years left on a 15-year mortgage. At this point, I'm thinking I'll probably have it paid off before my Bronco shows up. :sneaky:

I don't know why I have been in serious conversation on multiple Threads Yesterday and Today, I'm usually the funny guy, I’m funny how, I mean, funny like I’m a clown, I amuse you? I make you laugh? I’m here to f****n’ amuse you? What do you mean funny, funny how? How am I funny?” :cool:

Its so surprise that many people cannot afford a 50k+ vehicle and most people should not be surprised that financing fell through if that happens. General rule of thumb is that vehicle affordability is 1/2 of one’s annual income. People making minimum wage with 450 credit scores are ordering Badlands, Wildtraks etc that in no way they could ever afford to finance and many salespeople have posted on various forums that there have been a lot of people with credit scores under 600 who were flabbergasted that they were turned down. If one gets turned down for financing there’s probably a good reason for it.

Credit is a strange game.Paid off my mortgage + Credit Score dropped 27 points.Still above 800 + paying cash if my Bronco ever arrives

Garemlin

I'm betting it's not only some people having financing fall through. It's probably dealers aren't going the extra mile to get customers financed on Broncos. I have a very good credit score. But I, like millions of Americans, have outstanding medical bills that show up on my credit. On my last purchase I got turned down because they tried to say I had new medical bills showing up. Which I didn't. My dealer went out of their way to contact the bank, explain the situation and got the deal done. I am sure with the Bronco many dealers are not going that extra mile to get deals done. Simple reason??? They know if the customer gets turned down the Bronco becomes theirs to sell. With an astronomical ADM of course.

As a Finance/Lease Mgr. for over 10 years, I can tell you Dealer makes money when you finance through them. If you have less than perfect credit, they make more money, because they can use that as leverage. Dealerships are businesses, not the Red Cross. I never had a customer walk out the door without their vehicle. That would be like throwing money out the window!

jossman

Credit is a strange game.Paid off my mortgage + Credit Score dropped 27 points.Still above 800 + paying cash if my Bronco ever arrivesView attachment 26634

No debt is worse. Shows no history of performance.
I’m in the same boat. Debt free for half my life.

FrankenRodz

As a Finance/Lease Mgr. for over 10 years, I can tell you Dealer makes money when you finance through them. If you have less than perfect credit, they make more money, because they can use that as leverage. Dealerships are businesses, not the Red Cross. I never had a customer walk out the door without their vehicle. That would be like throwing money out the window!

Yup all based on interest rate points. They make more money based on higher interest rates. The thing is most buyers do not know this. A dealer can tack on higher interest rates to make more money when the customer could have easily qualified for a much lower rate. Most won't question it and sign on the dotted line.

And my point about not going the extra mile to get customers bought on the Bronco was just for the Bronco. If they agreed to sell at MSRP and the buyer doesn't get approved, they will not push to get them approved. They'll just let that customer walk. Because that Bronco becomes theirs and they can sell it with an ADM. Not saying all will do this. But many will.

When I was trying to build my credit back up after my divorce my dealer went the extra mile to get the deal done with the bank. They all have that certain person at banks and lenders that they have a good relationship with and can call in a favor to from time to time to. Some dealers actually do care about building long term customer relationships. I have since bought three more vehicles from this dealer that helped me when I was down and didn't just kick sand in my face.

Garemlin

Yup all based on interest rate points. They make more money based on higher interest rates. The thing is most buyers do not know this. A dealer can tack on higher interest rates to make more money when the customer could have easily qualified for a much lower rate. Most won't question it and sign on the dotted line.

And my point about not going the extra mile to get customers bought on the Bronco was just for the Bronco. If they agreed to sell at MSRP and the buyer doesn't get approved, they will not push to get them approved. They'' just let that customer walk. Because that Bronco becomes theirs and they can sell it with an ADM. Not saying all will do this. But many will.

When I was trying to build my credit back up after my divorce my dealer went the extra mile to get the deal done with the bank. They all have that certain person at banks and lenders that they have a good relationship and can call in a favor to from time to time to. Some dealers actually do care about building long term customer relationships. I have since bought three more vehicles from this dealer that helped me when I was down and didn't just kick sand in my face.

I agree totally with this. A good dealer will work with the bank and you to get you in your vehicle. It's about doing a great job and the right thing at that point. There are good ones out there.