Dealership says not accepting outside financing?!

[MJbronco]

So I was in market for BS BB, wanted the Area 51 but the one in transit to dealership was spoken for (I'm assuming there was deposit on it). They had same vehicle just carbonized gray on the lot and we talked leasing but I ultimately didn't pull the trigger. I recently was pre-approved through my bank and the Area 51 that was previously spoken for is now available.

I talked to the guy at the dealership today and he said they wouldn't be accepting outside financing on this vehicle...doesn't make sense to me and feel like they are playing hard ball trying to push me towards Ford credit or possibly leasing through them.

Is this typical or are they giving me the run around, any thoughts on how I should proceed? This is the vehicle I want. Also, I qualify for X-plan pricing which they will only take on orders, which is understandable....but not accepting outside financing doesn't make sense to me.

Thanks for any help!

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[kyle_conrad]

Dealerships make money on financing, so it's totally up to dealerships if they allow outside financing or not. If you really want this particular vehicle, probably worth seeing what rates/terms they can get you. Alternatively, you can initially finance through them and then refinance through your own financing as soon as possible.

 

[MJbronco]

Dealerships make money on financing, so it's totally up to dealerships if they allow outside financing or not. If you really want this particular vehicle, probably worth seeing what rates/terms they can get you. Alternatively, you can initially finance through them and then refinance through your own financing as soon as possible.

Makes sense, would it be smart to give them the terms of my loan then? Or is that something I should keep to myself for now?

 

[kyle_conrad]

Makes sense, would it be smart to give them the terms of my loan then? Or is that something I should keep to myself for now?

I wouldn't hide anything from them - honestly tell them "hey I have a loan at this rate for this long, these are the payments" and see if their financing can beat it. The advantage to dealer financing (usually) is that they have connections at a bunch of different lenders, so they can shop it around if they need to. I'll also mention that I've used Ford Credit in the past and always had a good experience with them, so if the rates/payments are close (within 1%-1.5% or so), it'd probably be much smoother to use them.

 

[Mark S.]

I talked to the guy at the dealership today and he said they wouldn't be accepting outside financing on this vehicle...doesn't make sense to me and feel like they are playing hard ball trying to push me towards Ford credit or possibly leasing through them.

Doesn't make sense to me either. If you're pre-approved for a loan then you are basically paying cash as far as the dealer is concerned. Something's fishy...

 

[rdc17]

Doesn't make sense to me either. If you're pre-approved for a loan then you are basically paying cash as far as the dealer is concerned. Something's fishy...

If you're paying cash, the only money the dealer is making is the difference between the sale price and invoice price.

If you finance through Ford Credit, the dealer is still making money off the difference, but are they also getting a cut of the interest $?

 

[MJbronco]

Doesn't make sense to me either. If you're pre-approved for a loan then you are basically paying cash as far as the dealer is concerned. Something's fishy...

Yeah that's what I figured, I have the check in hand, we settle on a price, write that number on the check and we're done!

 

[MJbronco]

If you're paying cash, the only money the dealer is making is the difference between the sale price and invoice price.

If you finance through Ford Credit, the dealer is still making money off the difference, but are they also getting a cut of the interest $?

I'm assuming they have to make some additional money or kickback from their lenders. Or else they wouldn't push it so hard

 

[kyle_conrad]

Doesn't make sense to me either. If you're pre-approved for a loan then you are basically paying cash as far as the dealer is concerned. Something's fishy...

A lot of dealers these days won't take cash, either.

 

[Mark S.]

A lot of dealers these days won't take cash, either.

Well, those are dealers that won't be selling anything to me.

 

[Monkey]

OP being in Pennsylvania, I can't comment about the legality of it there, but some states don't allow dealerships to refuse outside lenders. The other alternative is to speak with the bank that pre-approved and see what they can do to help. They'll want to lend the funds if they can, that's how they make their money after all. if they will issue a bank check for the purchase or directly fund OP's account, then it's all the same as cash as far as the dealership is concerned.

Interesting that the BS was originally spoken for but now available again. In this market if they can't sell a Bronco Sport, there's something up with that dealership. Talk to them and see if they'll deal, but if they're charging ADM or excessive fees or jerking people around with financing demands or whatnot, probably best to just go elsewhere. Although it's a bit of work to round one of these up that are not already spoken for if they're at a dealership or en-route.

 

[rdc17]

A lot of dealers these days won't take cash, either.

How the times have changed.

I was in the hunt for a BS this time last year. Finally found one, was about to pay cash when the finance director told me about the 0% for 48 months deal Ford Credit was running at the time.

 

[kyle_conrad]

How the times have changed.

I was in the hunt for a BS this time last year. Finally found one, was about to pay cash when the finance director told me about the 0% for 48 months deal Ford Credit was running at the time.

It's free money!

 

[MJbronco]

OP being in Pennsylvania, I can't comment about the legality of it there, but some states don't allow dealerships to refuse outside lenders. The other alternative is to speak with the bank that pre-approved and see what they can do to help. They'll want to lend the funds if they can, that's how they make their money after all. if they will issue a bank check for the purchase or directly fund OP's account, then it's all the same as cash as far as the dealership is concerned.

Interesting that the BS was originally spoken for but now available again. In this market if they can't sell a Bronco Sport, there's something up with that dealership. Talk to them and see if they'll deal, but if they're charging ADM or excessive fees or jerking people around with financing demands or whatnot, probably best to just go elsewhere. Although it's a bit of work to round one of these up that are not already spoken for if they're at a dealership or en-route.

Yeah I didn't ask why the deal didn't go through, I did just get off the phone with the manager at the dealership. He reiterated what the salesman told me as far not accepting outside financing, he did say that I obviously had the option of refinancing with my bank after going with Ford credit. I told him my interest rate with my bank and his exact reply was "wow that's an aggressive interest rate" ???

I'll look into the Pa laws...I bank with Navy Fed so I guess I can reach out to them and see what they say

 

[MJbronco]

OP being in Pennsylvania, I can't comment about the legality of it there, but some states don't allow dealerships to refuse outside lenders. The other alternative is to speak with the bank that pre-approved and see what they can do to help. They'll want to lend the funds if they can, that's how they make their money after all. if they will issue a bank check for the purchase or directly fund OP's account, then it's all the same as cash as far as the dealership is concerned.

Interesting that the BS was originally spoken for but now available again. In this market if they can't sell a Bronco Sport, there's something up with that dealership. Talk to them and see if they'll deal, but if they're charging ADM or excessive fees or jerking people around with financing demands or whatnot, probably best to just go elsewhere. Although it's a bit of work to round one of these up that are not already spoken for if they're at a dealership or en-route.

I was also given an invoice price of 31,437.40 of anyone is familiar. It's BS BB with convenience and tow package

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