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

[KCMO68_510]

My dealer said Santander is 8% but they're going to shop for other rates and that I'm able to bring my own bank if I like.

My best advice to anyone is to always get the best rate you can on your own, and then simply ask the finance guy to beat it. They always find a way.

 

[Fasttoys]

Very simple, you goto the credit Union and get a check for the car purchase that you are financing hand it to dealer drive it off. If they wont except that process for any reason. Other option, you take their financial BS and buy the car and then go to the credit union about a week later and refinance it. The dealership loses the incentive for financing and the good news that is a big F U to the dealer and the financial services department.

 

[DougieFresh]

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

The advertisement of a good offered for sale by a seller is not the offer (even if it includes a price) - it is an invitation for an offer. Subject to very specific exceptions, you cannot simply walk into a dealer, throw $100,000 in USD fiat currency on the sales manager's desk, and demand a car just because you saw an advertisement. In that scenario, you are offering $100,000 in exchange for a car - the dealer still has the right to accept or refuse that offer.

 

[KAR120C]

Very simple, you goto the credit Union and get a check for the car purchase hand it to dealer drive it off. They have no way of knowing if the check is financing or money from your account. Other option take their financial BS and buy the car and go to the credit union about a week later and refinance it. They lose the incentive at the dealer for financing and that is a big F U to the dealer.

A check from a financing company is NOT the same as just any old check from your account. There is significant fine print on the check that obliges the dealer to insure the title is branded with the financing company as lienholder and that the title reaches the lender within x days to perfect the loan. The bill of sale/invoice will also disclose the lender. If the lender does not receive the title, they will give the dealer hell until they get it, even if it's not the dealer's fault for it not arriving.

All of that is part of a dealer's agreement when accepting payment from a lender.

 

[KCMO68_510]

A check from a financing company is NOT the same as just any old check from your account. There is significant fine print on the check that obliges the dealer to insure the title is branded with the financing company as lienholder and that the title reaches the lender within x days to perfect the loan. The bill of sale/invoice will also disclose the lender. If the lender does not receive the title, they will give the dealer hell until they get it, even if it's not the dealer's fault for it not arriving.

All of that is part of a dealer's agreement when accepting payment from a lender.

This I can 100% guarantee is not true in all states. In Missouri (where I live) the purchaser is entitled to keep the title of the car even if a Lien exists on the title. The title does have to show the lien, but in MO the lienholder isn’t allowed to withhold the title from you. Maybe MO is a rare oddball, but it does show that state variation exists.
Has anyone actually ran into a dealer NOT accepting outside financing? I thought the one case that started this ended up being a misunderstanding?

 

[Fasttoys]

A check from a financing company is NOT the same as just any old check from your account. There is significant fine print on the check that obliges the dealer to insure the title is branded with the financing company as lienholder and that the title reaches the lender within x days to perfect the loan. The bill of sale/invoice will also disclose the lender. If the lender does not receive the title, they will give the dealer hell until they get it, even if it's not the dealer's fault for it not arriving.

All of that is part of a dealer's agreement when accepting payment from a lender.

Fixed my post, I pay cash plus my credit union does it different for me as I have significant money in the bank. I had the title mailed to me before and walked it to the bank when it was an out of state purchase. Called them last week since mine is out of state and that state will not collect taxes and registration, so the mso will be mailed to me and I will go to the DMV to pay taxes and registration. Plus when I do this it’s usually me putting down 55% or more down. I can’t stand interest unless it’s coming to me verses me sending it to a Bank. On in state purchase I never had to do outside financing as I went with dealer financing since they all did business with my credit unions (i deal with 5 I do business) or just paid cash.

 

[Fasttoys]

This I can 100% guarantee is not true in all states. In Missouri (where I live) the purchaser is entitled to keep the title of the car even if a Lien exists on the title. The title does have to show the lien, but in MO the lienholder isn’t allowed to withhold the title from you. Maybe MO is a rare oddball, but it does show that state variation exists.
Has anyone actually ran into a dealer NOT accepting outside financing? I thought the one case that started this ended up being a misunderstanding?

I live in Texas & have purchased over 63 cars/SUVs/trucks in my time. The dealer at Lotus Dallas is playing hardball $$$, to gain some extra money. In all my transactions with multiple brands, not one dealer told me I had to finance with them to buy the car. Earth Motor Cars has been around for a while and sells high-end preowned cars and this is their first true new car franchise. I was going to buy a Porsche from them and they did not care how I paid for it. If they want to be the largest Lotus dealer in the future these tactics could backfire on them.

One way to look at it, selling preowned cars and new cars is a different process. Not all new car dealers separate the sales and Management teams when it comes to these purchases. Over the years I have noticed more consolidation of these departments since Companies that own the dealers are trying to do more with less to save money. But in my area many are still separated, call any of them, and the pre-owned manager and the new car manager are not the same person. My point is that it's a different sell and to me, Dallas Lotus will be going through some growing pains especially when the Lotus EVs hit the ground. Frank & Brad are nice guys & who knows this could be coming down from the manager over financial services. Ultimately, these USA Lotus franchises have been waiting for products to arrive, with no inventory to sell for years, and supporting a brand without inventory financially is never easy. Heck with that many years without innovatory if I owned a Lotus dealer I probably charge you to sit in the car lol.

How many Lotus dealers are managed in the USA dealer network from large franchises and new car dealers? I would be curious to know as I know the investment has been a losing process until they start getting and selling inventory.

 

[trackday14]

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.

No…I financed outside of Lotus. In fact, my dealer searched for finance rates for me (in addition to my banks).

 

[trackday14]

I was told by a sales rep that Lotus has a deal with Santander (bit odd as they usually do financing for low credit score buyers) and apparently they will be giving “aggressive” financing rates on the Emira and also some good lease opportunities. He mentioned Lotus wants the cars to be out on the road so they will be making financing attractive/obtainable to wide profile of buyers.

The Santander rate was the worst and least competitive of the rates I received.

 

[KAR120C]

This I can 100% guarantee is not true in all states. In Missouri (where I live) the purchaser is entitled to keep the title of the car even if a Lien exists on the title. The title does have to show the lien, but in MO the lienholder isn’t allowed to withhold the title from you. Maybe MO is a rare oddball, but it does show that state variation exists.
Has anyone actually ran into a dealer NOT accepting outside financing? I thought the one case that started this ended up being a misunderstanding?

Well, I stand corrected. If I was a lender, I sure wouldn't want to do business in MO. Having that title in their possession is what allows them to show ownership of the vehicle, repossess if necessary, etc. That's also how the lien release works (at least on all the states I've worked with), where the lienholder physically signs the title to relinquish the lien. After I retired I did a lot of back office work at a high-end dealership and the lienholder always held the title.

 

[KCMO68_510]

Well, I stand corrected. If I was a lender, I sure wouldn't want to do business in MO. Having that title in their possession is what allows them to show ownership of the vehicle, repossess if necessary, etc. That's also how the lien release works (at least on all the states I've worked with), where the lienholder physically signs the title to relinquish the lien. After I retired I did a lot of back office work at a high-end dealership and the lienholder always held the title.

Here are the states that allow you to possess the physical title with a lien (Non-Title Holding States) The lender may still try to hold on to them in these states, but if you request the title they are required to give it to you (But as I said before, the Lienholders info will appear on the title until you get a lien release):

• Kentucky
• Maryland
• Michigan
• Minnesota
• Missouri
• Montana
• New York
• Oklahoma
• Wyoming

 

[KCMO68_510]

The Santander rate was the worst and least competitive of the rates I received.

My Lotus dealer presented me with a 5.79% for 72 months from Santander. Didn't seem wildly out of the mix of other offers.

 

[Blackthought_]

Here are the states that allow you to possess the physical title with a lien (Non-Title Holding States) The lender may still try to hold on to them in these states, but if you request the title they are required to give it to you (But as I said before, the Lienholders info will appear on the title until you get a lien release):

• Kentucky
• Maryland
• Michigan
• Minnesota
• Missouri
• Montana
• New York
• Oklahoma
• Wyoming

Also remember there are unstructured car loans that are auto loans that you can get and keep the title even if you live in the states from above. In the past I’ve gotten an unstructured loan through LightStream where I’ve kept the title and I live in NJ

 

[Blackthought_]

My Lotus dealer presented me with a 5.79% for 72 months from Santander. Didn't seem wildly out of the mix of other offers.

I’ve noticed rates are trending a bit down it appears so perhaps folks that apply lower till get lower rates than a few weeks bank. Bank of America just lowered their new auto loan rates to 5.99

 

[Raskits]

You guys have any idea what estimated residual value of the Emira? My dealer hinted over around 70%. But wont know the final number till they get their first vehicle shipped out.

I might be interested leasing it if residual value is good. Can always buy it at end or get out of it if too many issues

 

[EspritGuy]

You guys have any idea what estimated residual value of the Emira? My dealer hinted over around 70%. But wont know the final number till they get their first vehicle shipped out.

I might be interested leasing it if residual value is good. Can always buy it at end or get out of it if too many issues

I was told the residual on a 3 year lease was 69 percent.

 

[JoeNCEmira]

The Santander rate was the worst and least competitive of the rates I received.

Did you get any lease numbers by chance?

 

[trackday14]

Did you get any lease numbers by chance?

Nope

 

[EspritGuy]

Did you get any lease numbers by chance?

See my post. Talk with your dealer. Discuss a trade-in or deposit down against the MSRP. The lease is 36 months with 10K miles annual and depreciation/residual of 69 percent at the end. The more down or higher the trade-in the lower the lease payment.
You can walk away then if you wish or buy a pre-owned Emira for possibly below the then-present used market value. To enjoy further or flip.
Inflation alone will drive acquisition costs higher over the next 3 years. Forum members have pondered the depreciation factor. Lotus estimated 69 percent residual presently.
But it's still a comparatively limited edition last ICE exotic facing electrification. Pay cash, get financing or grab a lease that suits your particular situation. It's worth both the wait and drive.

 

[Porter]

The advertisement of a good offered for sale by a seller is not the offer (even if it includes a price) - it is an invitation for an offer. Subject to very specific exceptions, you cannot simply walk into a dealer, throw $100,000 in USD fiat currency on the sales manager's desk, and demand a car just because you saw an advertisement. In that scenario, you are offering $100,000 in exchange for a car - the dealer still has the right to accept or refuse that offer.

I just saw this post, sorry. Nobody is talking about advertisements. We're talking about a done deal on paper with a dealer, and in this particular case a special ordered car with $5k deposit already paid by the customer against an agreed price. And then the dealer, at the last minute, refusing money offered by the customer for the completion of the agreed transaction, and demanding the use of an in-house finance arrangement rather than completion of the cash transaction. Essentially, demanding that the customer encumber themselves with debt as a condition of sale. That's insane.

Now, it turns out after the fact that this was a case of Salesperson Gone Wild, and not the actual policy of the dealer in question. Which is good, because someone there at the dealer clearly understands what is and is not legally acceptable in a regulated marketplace.