Anthony
Round Rock,#2Consumer Comment
Thu, April 23, 2009
I had the same situation and even had $5000.00 to put down and yet they would not take that. Wow! I guess they just would make as much on that deal. In Sept 2008 Capitol Kia in Austin was revoked by the BBB for so mnay complaints about advertising, sales, and service. What does that tell you!
Daryl
Leander,#3Author of original report
Wed, November 07, 2007
"they didn't profit one iota" You are right, they didn't profit one iota....because I walked out! The scam is they say you're pre-approved based on your income and credit score, then pull the switch when you arrive. A few years ago, banks and especially credit unions offered the best interest rates. Right now, the dealer financing has better rates industry-wide. If you go to your credit union or bank (as I have done in the past), a "pre-approval" is really pre-approval: ex: "You are pre-approved for a new car loan up to $40,000 or 120% of MSRP, whichever is less." No VIN required up front for a *real* pre-approval.
John
McKinney,#4Consumer Comment
Wed, November 07, 2007
If they treated you bad, why on earth did you attempt to buy a car from them? Even if they had bent over backward with the niceties, the result would have been the same, a turn down by the banks. If you dissagree with their business practices, a letter to their parent company might do more good than trying to figure out how you can twist your experience into a "scam". It doesn't sound like much of a scam to me; they didn't profit one iota. All they did was waste their time.
Daryl
Leander,#5Author of original report
Tue, November 06, 2007
To answer the question: I went to another Kia dealership nearby, got treated with more respect, was explained more about my financing options EXACTLY, and the entire experience was better. Capitol Kia operates like a 90s era "boiler room" on the sales floor. By the way, the dealership matters. 4 years ago I was treated like this at a dealership in California, drove down the street to another dealership and they custom ordered my car and I had it within a week. The first dealership was more concerned with their Spiffs for the day...the other guys wanted a repeat customer.
John
McKinney,#6Consumer Suggestion
Tue, November 06, 2007
A pre-approval is pretty much meaningless when it comes to a car loan, the reason being, anybody quallifies to buy a car if certain conditions are met. With enough cash down, risk factors can always be lowered, reguardless of your credit history. In effect, everyone on Earth is "pre-quallified". That Kia dealership could not submit a loan request to any bank on your behalf until you selected a car for them to submit you on. After they got you to select a car, I'm sure they hit you up for as much downpayment money as possible. They then hit you up for a co-signer, probably because you had nothing, or close to nothing as a down payment. After putting the deal together as best they could, it was obviously rejected by their lending institutions as it was, so they asked you for a different co-signer. Their goal was to get you in, land you on a car, put together the most buyable deal possible, and take a shot at it. Throwing a bunch of poop against the wall to see if anything sticks, if you will. As it was, yours did not stick. I would imagine this practice is pretty common in any Kia dealership, as it is the cheapest car available, but I do not see how they wronged you. It's not the Kia dealership that turned your loan request down, it was the banks. I'm pretty sure that Kia dealer did the best they could do with what they had to work with.
John
McKinney,#7Consumer Suggestion
Tue, November 06, 2007
A pre-approval is pretty much meaningless when it comes to a car loan, the reason being, anybody quallifies to buy a car if certain conditions are met. With enough cash down, risk factors can always be lowered, reguardless of your credit history. In effect, everyone on Earth is "pre-quallified". That Kia dealership could not submit a loan request to any bank on your behalf until you selected a car for them to submit you on. After they got you to select a car, I'm sure they hit you up for as much downpayment money as possible. They then hit you up for a co-signer, probably because you had nothing, or close to nothing as a down payment. After putting the deal together as best they could, it was obviously rejected by their lending institutions as it was, so they asked you for a different co-signer. Their goal was to get you in, land you on a car, put together the most buyable deal possible, and take a shot at it. Throwing a bunch of poop against the wall to see if anything sticks, if you will. As it was, yours did not stick. I would imagine this practice is pretty common in any Kia dealership, as it is the cheapest car available, but I do not see how they wronged you. It's not the Kia dealership that turned your loan request down, it was the banks. I'm pretty sure that Kia dealer did the best they could do with what they had to work with.
John
McKinney,#8Consumer Suggestion
Tue, November 06, 2007
A pre-approval is pretty much meaningless when it comes to a car loan, the reason being, anybody quallifies to buy a car if certain conditions are met. With enough cash down, risk factors can always be lowered, reguardless of your credit history. In effect, everyone on Earth is "pre-quallified". That Kia dealership could not submit a loan request to any bank on your behalf until you selected a car for them to submit you on. After they got you to select a car, I'm sure they hit you up for as much downpayment money as possible. They then hit you up for a co-signer, probably because you had nothing, or close to nothing as a down payment. After putting the deal together as best they could, it was obviously rejected by their lending institutions as it was, so they asked you for a different co-signer. Their goal was to get you in, land you on a car, put together the most buyable deal possible, and take a shot at it. Throwing a bunch of poop against the wall to see if anything sticks, if you will. As it was, yours did not stick. I would imagine this practice is pretty common in any Kia dealership, as it is the cheapest car available, but I do not see how they wronged you. It's not the Kia dealership that turned your loan request down, it was the banks. I'm pretty sure that Kia dealer did the best they could do with what they had to work with.