Process for using your own bank
Steps for outside financing
If you are going to use your own bank, that is totally fine with us. However...there are many things that banks dont tell you about how this process works. So here goes.
- The process takes *days* or sometimes weeks, depending on your bank. You will not be able to drive the car home the same day as you come to see it. Why? Because your bank will not issue the payment (99% of the time), until we register the car. We will not release the car until we get payment in full. So the processing time between your bank committing to the payment, and then us registering the car, and then you coming back to pick it up, can sometimes take 5-10 business days. Schools First is the most notorious, as they mail their checks using regular mail, and in 15 years, 3 checks have never made it to us, causing a delay over 2 weeks. We recommend you pick up the checks.
- Just because you have an approval for $10000000 (insert whatever amount here), doesnt mean that you can buy ANY CAR up to that amount. The bank has to validate your purchase, but confirming something called the "Loan to Value" aka LTV. This means, if you have $0 down, and an approval for say $25000, that does not mean you can buy a $5000 van, even though its a fraction of your approval amount. That $5000 van may only have a lending value of $2500. Meaning, they will only lend $2500, and YOU have to bridge the gap for the balance + all taxes + all dmv fees. Since our cars are all older and higher miles, it is almost NEVER, that you can buy one with $0 down.
- When you send your pre-approval from your bank, which happens before your appointment is confirmed, YOU will need YOUR BANK to contact us via email or phone call, to tell us what exactly is the max amount they will finance FOR THE PARTICULAR CAR you want to see. You might be surprised to find, they wont even lend you $1 on a car that is xx years old. So all of this has to be ironed out BEFORE YOUR APPOINTMENT
- So the main take away is that you need to have your bank email us the specific details, INCLUDING LTV, max age, max miles, etc before we do anything. That is step 1.
- If you made an appointment and had it cancelled, that is because you didnt follow the steps above. Contact us to discuss.
Below is an example of a rather useless Pre-Approval. Why? It doesnt state max LTV (also must tell us WHAT BOOK they are using). It doesnt state max age or miles. It doesnt state required down payment. It basically tells us nothing other than the max they will pay, which is a SMALL PIECE of the total picture.