You find the car you are interested in buying and have pre-arranged a banker’s check with a reputable online lender or credit union. When you go to pay the dealer explains that they cannot accept the bankers check as they have had trouble with them cancelling the checks in the past or they always seem to bounce. The car dealer then offers you a loan to sort this problem out as you are eager to buy your new car but the interest rate on the finance is higher than what you had previously arranged.
If your bankers check was with a well known company then there should never be such issues as the car dealer is explaining as if would be well known news.
If the dealer offers you a better rate of interest then there is nothing wrong here.
How to avoid this scam: The best thing to do here is work out if the loan has a higher interest rate than you are currently paying and if not then tell them you are on to their scam and walk out the door.
I’m dealing with this right now. They took and glady accepted by Credit Union’s pre-approved bankers draft which clearly stated it was good for up to $27,000. I drafted $20,000 on the check to the dealership for the new car. They said I would have to wait a couple days for it to clear. It cleared on Monday, yet they still won’t release the vehicle to me. Something about the draft really being just a promissory note and there has to be other paperwork they receive from the Credit Union before they are sure the funds are good. Huh? The credit union has already faxed them a letter AND talked to them numerous times to assure them that the check has cleared and everything is kosher with the check.
Beware!!
Well, it might be that the dealership is taking extra precausions or they might be doing something shady. If they have not yet released the vehicle to you then please do give me a call to discuss. 818-990-0418.
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