How To Buy A Car With No Credit Or Bad Credit

“Your Financing Check Bounced”

This scam is pulled on people who have taken the time to obtain their own financing and are able to go to the dealer with a check in hand from their financing company.  The dealer sees your bank draft from a credit union, or online car finance sites.  Not wanting to lose the extra gravy of selling you the car dealer's own financing, they refuse your bank draft, lying to you that "online lenders bounce checks."

They will say "their checks always bounce, so we don't take them". But by golly, the dealer is more than willing to provide you financing, at higher APR.  Some financing companies are almost household names and many car buyers would immediately doubt the salesperson's lies. So the dealer may also tell you "well, they take too long to pay us".

Some salespeople stop at nothing. If your lender was bouncing checks, you'd certainly hear about it.  There's nothing wrong with dealer financing if they can beat your best APR. If not, use your online financing.

Unless you qualify for a manufacturer's 2.9% financing, online banks will beat the local banks used by dealers most of the time, and online lenders often beat credit union rates.

If a dealer spews out this scam and refuses your online financing, you the customer need to retain control and refuse to buy from that unethical and slanderous dealer. There are plenty of ethical dealers who eagerly accept online loans without the lies.

Tell the finance manager you're onto their scam, and that online lenders have been in business for years and fund loans without bouncing checks. Then get up to leave.

You should also file a complaint with your state Attorney General's office because this scam needs to be made illegal for dealers who force you into higher APR financing. if the state attorneys do not know this is going on, they can't help consumers.

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