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      03-28-2008, 11:44 PM   #2034
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Drives: 996 C4
Join Date: Mar 2008
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Originally Posted by bmw-m6 View Post

this was the site i used as my guide when i went shopping for a used car (gotta be a bit more careful b/c it didn't come right outta the factory, and ya gotta be more careful).

on first page there should be a blue hyperlink "capitalone auto finance"

Scam #5: The "Your Online Lender Bounces Checks" Scam

How the scam works: The dealer sees your bank draft from a credit union, or online car finance sites such as Capital One Auto Finance, HSBC Auto Finance or AutoCreditFinders. Not wanting to lose the extra gravy of selling you the car dealer's RISC 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 gee, the dealer is willing to provide you financing, at higher APR. CapitalOne and HSBC are household names and many car buyers already doubt the salesperson's lies. So they may also tell you "well, they take too long to pay us".

Some salespeople stop at nothing. If your lender was bouncing checks, we'd hear about it via federal investigations. I get daily emails from people who financed with Capital One Auto Finance, HSBC Auto Finance with no problem. I used Capital One Auto Financeto finance my new 2004 Lexus GX470 SUV. Lexus had no problems accepting my CapitalOne check. My friend financed 2 used cars with Capital One Auto Finance. 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.

How To Avoid The Scam: Tell the finance manager you're onto their scam, 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 we need to make this scam illegal for dealers who force you into higher APR financing. I get emails on this scam often, and if the state attorneys do not know this is going on, they can't help us consumers. The federal government should wrap this into the Truth In Lending Act. Here's our link to all 50 Attorney General's Offices.
I had a friend use either CapOne or Eloan many years ago to buy his Diablo Roadster. The dealer had no problem taking that check!