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What does this mean?

B

bri_ski

Full Member
Joined
Jan 23, 2003
Messages
22
Location
Jordan, MN
I just received a letter from GMAC regarding the purchase of my 2004 Av Z71. Here are the first two paragraphs:

We were recently informed by <dealership name here> that it was considering the credit sale or lease of an automobile or other proudct to you and asked whether we would be prepared to accept your obligation if the transaction was completed.

We must regretfully inform you that we were not agreeable to handling the proposed transaction as submitted. We would, however, be agreeable to handling the transaction under the modified terms which have been relayed to the dealer.

I tried calling the dealership today but they are apparently closed for the day as no one is answering the phone. What happens if the 'new' terms are not agreeable to me? I've been driving the Av for 3 weeks now. Do I give the AV back if I terms are unacceptable? I traded in my 1999 Chevy Silverado for the Av. how does that play into this now? I do know they still have that vehicle.

Has anyone been in this predicament, or know of someone who has? What happens now?

Thanks in advance for any feedback.

 
Did you purchase your vehicle through GMc credit????It sounds to me as if "modified terms" means asking for more money down$$$ or higher %interest rate....Good LUCK
 
martin said:
Did you purchase your vehicle through GMc credit????It sounds to me as if "different terms" means asking for more money down$$$ or higher %interest rate....Good LUCK
Click to expand...

Yes, financing is through GMAC.
 
It could be the loan was originally turned down but the dealership worked it out before you got there. It is highly unlikely that they wouldn't have contacted you within the THREE WEEKS you've had your AV if there was a problem with GMAC buying the paper.

I would contact your salesman though just to make sure, you never know with dealerships! :B:
 
Ambalanche said:
It is highly unlikely that they wouldn't have contacted you within the THREE WEEKS you've had your AV if there was a problem with GMAC buying the paper.
Click to expand...

Well they've had plenty of opportunity to let me know. I've been at the dealership twice since I brought the vehicle home, including having left the Av at the dealer last week Wed through Fri to have them look at a leak in the midgate.

They (GMAC) may have different terms they are willing to propose, but I purchased the AV because the terms were favorable what I was looking for....and at the upper end of what I wanted to spend. So, my fear is the new terms will not be acceptable to me. If that's the case, I'm wondering what my recourse would be.
 
did you by chance purchase gap insurance? i had a problem with mine in that it was included in the financing which is a no no and had to be changed.
 
Sounds way to weird ??? How can they change financing terms after you have signed the loan three weeks ago? I know they can sell your loan but the terms and conditions remain the same.

Please let us know.
 
I just e-mailed a couple people I gave GMS discount to, not sure which one had the same situation. I copy/pasted message and thread link, maybe he'll respond and shed a little light on this. I once purchased 2 new vehicles from a dealer at the same time and GMAC would only finance one but one wasn't GM. I got a comparable rate from my credit union anyway and bought both. I've always had credit preapproved so I don't really understand this myself.
 
I was in the same situation once bri_ski. I have some questions for you:

1) Have you received anything from the dealer asking you to sign another contract?
2) Have you made any payments yet?
3) Are you aware of your rescession rights as a consumer when a dealer rescinds a contract?
4) Are you happy with the deal when you purchased you Avalanche?

My say to this (if the dealer tell you that you have to sign another contract)

1) You do not have to sign another contract.
2) Check with your local District Attorney for consumer laws that will protect you against dealers like this. Here in California we have a Civil Code that protects consumers against dealers. It states:
After this contract is signed, the seller may not change the financing or pament terms unless you agree in writing to the change. YOU DO NOT HAVE TO AGREE TO ANY CHANGE and it is an unfair or deceptive practice for the seller to make a unilateral change.
3) The ball in your hand, it's all up to you on how you play it. Do some researching to back you up in case you have to argue with the dealer.

I hope you get over this problem soon. I got over it but there were a lot of time wasted. It was worth it though. I didn't want to get stuck on a bad deal for years.
 
bri_ski said:
I just received a letter from GMAC regarding the purchase of my 2004 Av Z71. Here are the first two paragraphs:

We were recently informed by <dealership name here> that it was considering the credit sale or lease of an automobile or other proudct to you and asked whether we would be prepared to accept your obligation if the transaction was completed.

We must regretfully inform you that we were not agreeable to handling the proposed transaction as submitted. We would, however, be agreeable to handling the transaction under the modified terms which have been relayed to the dealer.
Click to expand...


I don't have any idea what they're trying to do but if it's not legit and they're trying to pull something, let us know. Two emails each from 10,003 Avalanche owners and enthusiasts telling them to back off would help pursuade them if it's something underhanded.

Also, if something becomes of it, you might want to modify the title of your thread or start a new one if you can't, since "What does this mean" doesn't exactly scream I'm getting ripped off by the dealer so please read this thread and help if you can.

On the other side of the coin, maybe they decided that they were charging too much and want to rework your deal with a lower interest rate. But don't hold your breathe on that one. :2:

Joe
 
gyrene1341 said:
I was in the same situation once bri_ski. I have some questions for you:

1) Have you received anything from the dealer asking you to sign another contract?
2) Have you made any payments yet?
3) Are you aware of your rescession rights as a consumer when a dealer rescinds a contract?
4) Are you happy with the deal when you purchased you Avalanche?
Click to expand...

Answers to your questions, gyrene1241:

1) No
2) No
3) No
4) Yes

I will do some research on my recession rights...thanks for the tip.
 
This happened to my Mom in FL a few years ago. She drove the new car for almost a month and got a call then that she did not qualify for the Lease deal. Luck for her there was no trade-in so she could just walk away and get all her money back. My Mom instead bought the car which I think was a better deal than the lease deal was as I think the dealer was willing to take less cause they would not be able to sell the car as new.

When this happened I did a check and it appears a few States allow "pre-loan approval" which tech. you don't have an approved loan when you drive the car away. This is how in some states you can drive the car away the same day. In NY you can't drive the car away until everything is done including plates(no temp. plates in NY).

Now in this day and age with computers and instant credit checks, I can't belive this is still happening. My guess(only a guess) is that there was some issues with your paper work which when it was corrected, slipped you past the approval point so your in a new bracket now(with different APR and monthly payments). It appears you still got a loan but different terms. Sorry to here this but you still have some options.

One is to take the new terms(payments change, more money down, etc.)
Walk away and get your money and other vehicle back
Where it will get iffy is if you walk away and your truck is sold already, you have to work with your dealer on how much your other truck was to get your money back on it. My dealer sold my traded vehicle in a week.

Good Luck,
Con
 
i bought a 1994 Z-28 from a dealership that let me drive away before we had the final answer from the finance company. i was a little worried of course. it was on a Thursday when i bought it. i was planning a road trip that weekend. i wondered if i would be responsible for the miles if the seal did not go through. fortunately it did work out. the dealer assured me that with their experience in selling cars i would have no problem getting financed. i'm sure they do not get everyone financed like they promised. i was in a good position at the time apparently. :B:
 
bri_ski, I wouldn't worry too much. I was in a similar situation a few months ago buying my wife's Lexus. We took the car home the same day financed thru Lexus/Toyota Motor Credit. Of course, a week later, I get a call saying that I need to sign some new papers for the loan. Asking them what happened to the previous papers that I signed, they said that they had to change the loan company for whatever reason. I told them that I wanted their sales manager to send the papers to my attorney/sister before I came in, to be sure that I wasn't paying any added charges. They did not send the papers and I did not sign anything else. That was in March, and I've been making the original payments as agreed when we got the truck the first day. I don't know what else happened, but I'm not asking any other questions; and it's already been in for servicing.
 
Chances are, this was an automatic reply, resulting from a refused contract. I had this happen, a few years ago. The salesman filled out something wrong on our first application, and the deal was rejected. When my wife and I informed them of their error, they resubmitted a corrected contract, and everything went through smooth as silk. I've never, ever, been denied a loan for anything. After a couple of weeks, a letter, similar to yours, arrived at our house :eek:. When I called the dealership, they said it was the automatic reply to the first contract, that was in error.

Probably the same situation. But, be sure you get an answer from your dealer.

Hope it works out. (y)

BlazerPride
:love: :B:
 
This wrinkle ( :E:) is something I've never personally experienced, and contrary to the notion that you "presume" you're already bound by the signed GMAC finance agreement. I'd be scheduling a meeting with the Salesman and the Sales Manager to resolve this item ASAP. If there are any adjustments to interest rate, I'd be pressuring the dealer to adjust the bottom line of the invoice to adjust (offset) any payment increase.

I wish you luck in achieving a favorable outcome to this.
 
Here's the ending to my story. I called the dealership this morning to inquire about the letter I received from GMAC. It turns out that I was offered 1.9% on a 72 month term and that interest rate for that term did not exist in GMAC's product line. The lowest interest rate available for 72 months is 3.9%. So, the dealer went ahead and bought down the loan rather than have me sign a new contract. It cost them about $1800 and they said that there is no change to what my numbers are. There weren't even going to bother me with the news (if it weren't for the GMAC letter). That's the kind of response that generates repeat business.

Coincidentally (or not), the salesman who sold me the AV no longer works at that dealership (after 10+ years of service) as of today. I'm not sure if that fact is related to this issue or not, but I was a little surprised to hear that.

Thanks to everyone who responded. Your comments were valuable and if nothing else, helped remind me to stay relatively calm. This site is an awesome resource.
 
Wow! Now THAT is a great dealership! Worth driving an entire day to purchase a vehicle from a place like that. ;D

Bet you're feeling better now. hehe
 
bri_ski said:
Coincidentally (or not), the salesman who sold me the AV no longer works at that dealership (after 10+ years of service) as of today. I'm not sure if that fact is related to this issue or not, but I was a little surprised to hear that.
Click to expand...

I just got a notice in the mail that the salesman that sold me my Grand Prix 9 months ago is no longer employed there, after 20 years service. Maybe it has something to do with lack of sales in general? Who knows....
 
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