Is anyone being told that Lotus is not allowing outside financing?

[cyanmauve]

Good afternoon,

My car is here and ready to go. I have secured 3rd party financing through a credit union. My salesman is stating that Lotus is not accepting/allowing 3rd party financing.

Has anyone else been told this?

Thanks in advance.

 

[LuckysDad]

That's illegal.

 

[benjh1028]

I have not been told that, and honestly I think it is illegal not to allow outside financing.

 

[KCMO68_510]

Good afternoon,

My car is here and ready to go. I have secured 3rd party financing through a credit union. My salesman is stating that Lotus is accepting/allowing 3rd party financing.

Has anyone else been told this?

Thanks in advance.

I haven’t heard that. My Salesperson had said that very few companies will finance a Lotus but that Lotus had a preferred relationship. But didn’t go as far as to say you HAD to work with them.

 

[Porter]

100% not true. And as stated above, I think not legal.

What next, are they going to refuse you writing a check to buy the car for cash, because they want to capture the financing interest profit?

 

[cyanmauve]

Sounded a bit odd to me. Honestly I don't care who I finance through as long as the rate I have already secured can be matched.

I understand that a business can refuse different forms of payment, as it is their prerogative. I have purchased several cars before, albeit they haven't cost as much as this one, but I hadn't heard of that before.

 

[KAR120C]

As horrible as it sounds, it's actually legal to require you to use their dealer arranged financing. On the other hand they cannot force you to buy the car. I don't know from experience, but a quick Google search confirmed it's normal practice for some dealerships.

 

[Maurice R]

100% not true. And as stated above, I think not legal.

What next, are they going to refuse you writing a check to buy the car for cash, because they want to capture the financing interest profit?

Yea right. lol I walked in yesterday and gave them a personal check.
Told thanks here are your keys enjoy the car.
All the paperwork was done electronically so delivery was instant
Except everyone at dealership game out to applaud and told me have many miles of fun driving

 

[FeelsWheels]

Woodside Credit finances any Lotus vehicles. Granted it's 144-month financing, but as long as you make your regular payments (say the same amount as it would be for 60 months), then you'll pay the same interest and have it paid off in 60 months or whatever timeframe you choose.

 

[Porter]

As horrible as it sounds, it's actually legal to require you to use their dealer arranged financing. On the other hand they cannot force you to buy the car. I don't know from experience, but a quick Google search confirmed it's normal practice for some dealerships.

Just because some dealerships have been successful in demanding such an outrageous thing, doesn't mean that it's actually legal.

If you look on the face of a US dollar bill, you'll see the phrase "Legal Tender for All Debts, Public and Private". There's no legal basis for demanding that an asset be purchased with a different type of debt instrument. Money can't be refused for transaction against a product that has a price on it and is offered for sale.

Anyone who actually experiences a dealership doing this should immediately contact your state's Attorney General (or other consumer protection office) to ask about the legality of this type of transaction abuse in your state. You can look up your particular state's consumer protection agency here: https://www.usa.gov/state-consumer

 

[KAR120C]

Just because some dealerships have been successful in demanding such an outrageous thing, doesn't mean that it's actually legal.

If you look on the face of a US dollar bill, you'll see the phrase "Legal Tender for All Debts, Public and Private". There's no legal basis for demanding that an asset be purchased with a different type of debt instrument. Money can't be refused for transaction against a product that has a price on it and is offered for sale.

Anyone who actually experiences a dealership doing this should immediately contact your state's Attorney General (or other consumer protection office) to ask about the legality of this type of transaction abuse in your state. You can look up your particular state's consumer protection agency here: https://www.usa.gov/state-consumer

I was referring to dealer required financing vs. 3rd party financing. Not cash purchases.

 

[Porter]

I was referring to dealer required financing vs. 3rd party financing. Not cash purchases.

3rd party financing is a cash purchase. The source of funds is none of the dealer's business, money is money. If the financing party is external, it's a cash transaction at the dealer's desk.

 

[KAR120C]

3rd party financing is a cash purchase. The source of funds is none of the dealer's business, money is money. If the financing party is external, it's a cash transaction at the dealer's desk.

No cash money is exchanged (usually). Just a check from the lender. And checks do not fall under the legal tender category. I'm not defending it. But a little research shows that it's a common (though distasteful) practice and is perfectly legal.

Personally, I would walk away from a dealer that pulled that on me.

 

[Porter]

No cash money is exchanged (usually). Just a check from the lender. And checks do not fall under the legal tender category. I'm not defending it. But a little research shows that it's a common (though distasteful) practice and is perfectly legal.

Personally, I would walk away from a dealer that pulled that on me.

A check is a type of promissory note, but a fully guaranteed one if it's a Cashier's Check or Money Order. That's how large sums of money have been moved around in the US financial system for over 200 years, by definition. And if it's the paper you're worried about, that's fine... do an ACH and deposit the funds directly. That's also an option.

If a dealership refused a valid bank's check with guaranteed funds, or an ACH or wire, because they wanted to soak the customer for more financing %... that's something the Attorney General of that state would probably be interested in. As would the local media.

Can you imagine a dealer refusing a customer's own bank's cashier's check drawn from cash in their account because it's not "legal tender"... this conceptually is just not a thing. At all.

 

[KAR120C]

A check absolutely falls under legal tender, particularly if it's a Cashier's Check or Money Order. That's how large sums of money have been moved around in the US financial system for over 200 years, by definition.

If a dealership refused a valid bank's check with guaranteed funds because they wanted to soak the customer for more financing %... that's something the Attorney General of that state would probably be interested in. As would the local media.

I work with a straight-shooting dealer, and am paying cash anyway, so I don't have a dog in the fight. I'm just a monkey with a keyboard that did a Google search and discovered it is a legal tactic that a dealership can use. I encourage others to do their own research and come to their own conclusion.

I'll move on.

 

[cyanmauve]

Thank y'all for the feedback.

I am hoping this is either a miscommunication or misunderstanding on the salesman's part that I can get hammered out quickly.

It seems very odd to refuse a check in the exact amount from a nation-wide financial institution...

 

[Lotustoronto]

Thank y'all for the feedback.

I am hoping this is either a miscommunication or misunderstanding on the salesman's part that I can get hammered out quickly.

It seems very odd to refuse a check in the exact amount from a nation-wide financial institution...

What rate is Lotus Financing offering you?

 

[cyanmauve]

What rate is Lotus Financing offering you?

I don't know yet. I applied via a very generalized application through the dealer website this afternoon, which I'm sure means that they are shopping the loan to a bunch of lenders. No offers received yet.

I have pre-approval through a credit union for 5.29% for the full purchase price of the car already.

In my business, I frankly don't care how my clients pay me. As long as the credit card swipes, the check clears, or the money isn't counterfeit, it makes no difference to me.

 

[Lotustoronto]

I don't know yet. I applied via a very generalized application through the dealer website this afternoon, which I'm sure means that they are shopping the loan to a bunch of lenders. No offers received yet.

I have pre-approval through a credit union for 5.29% for the full purchase price of the car already.

In my business, I frankly don't care how my clients pay me. As long as the credit card swipes, the check clears, or the money isn't counterfeit, it makes no difference to me.

Odd... If they don't match it, keep us posted on that.

 

[kitkat]

Unfortunately @KAR120C is right here, @cyanmauve is in Texas and there are no signed laws that prohibit this.

Last year the TX Senate passed SB 1464, but has not yet been signed into law.

This is unfortunately one of those things that depends on the state level laws.