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PNC auto loan applied by a dealer

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    PNC auto loan applied by a dealer

    My credit is about 730, my w2 income is 17000, and every month I made about 2000, spending(including garnish) about 1300, I work for my current employer about 8 months

    A dealer never obtain any of my income resources and telling me I am approve for finance, but he did not gave me any letter or document saying my finance is "final approve" , I sign a sales contract and drive off the car with a interest rate of 2.65 and finance around 33000, paying about 450 for 72 months, no down payment

    I was happy until someone told me this is something wrong, saying I might get in trouble cause my yearly income is 17000 how can I get approve in a rate that seems lower that PNC rate calculator and got financed for 33000, suspecting the dealer must have fudge my financial status cause the dealer did not ask me for it, and my insurance prove is not yet present too , which I think the lender require those documents before a final approve.

    I call the PNC bank and check, they said my account is not yet created by the loan was approve and will send me the booklet and paper work several days later, I feel so strange, should I call the bank and ask if this is a contingency approval and provide them my income/spending source.

    In Maryland, If a contract and loan is not final approve I can't drive off the car which I did, also with no insurance require that day when I drove off.

    I got scare now after researching a lot of stuff online, I think I am in "spot delivery" and now intend to verify with lender about my income and else, I want to stay away from this distrustful dealer, and only way seems to be the loan , I think I will most likely be denied and thats when I can back off this bad deal and stay away from this bad dealer.

    Any advice?

    I can't say for sure if the dealership pulled something shady, but I can tell you that you bought way too much car for your income. You are spending 35% of your take home pay on a car payment. And you financed it for 6 years.

    Rule of thumb is to have a car payment that represents no more than 10% of your monthly take home pay and not to finance for more than 3 years. For your sake, I hope that something underhanded happened so that you are forced to return the car and get out of this bad deal that you are currently in.


      I totally agree with Brian. There's no way you should have purchased this car. It is way, way, way out of your price range. Return it ASAP and get a car with a monthly payment not exceeding $150-200 for no more than 3 years.

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        Originally posted by bjl584 View Post
        I can't say for sure if the dealership pulled something shady, but I can tell you that you bought way too much car for your income.

        OP - you've made a mistake. Do what you can to sell the car ASAP. Consider the depreciation hit as tuition in your financial education.
        seek knowledge, not answers
        personal finance