AmeriCredit They Reneged on a car Loan after the contract was signed, while I was driving away in the new car! Fort Worth Texas

I just want to say that I was looking for a way to get out of my new car loan and you both gave it to me! I drove off the lot yesterday and couldn't sleep. I knew I didn't really want the car, or could afford the car, but I caved under the pressure of the salesman and the finance man, and under the desperation I feel for needing a car. I called this morning to explain to the dealer that I don't want the car anymore, and he pretty much said tough luck. The state of Illinois has no buyer's remorse or three day rescission law.

However, and I know you both are going to think this is nuts, I have not yet submitted proof of income -- I am supposed to do that today! If I don't give them proof, then, I surmise, my loan will not be finalized by Americredit, and the dealer will have to take back the car?

I did give a $1000 down payment, but I read that by law it has to be returned to me if the deal is not finalized. No doubt this unscrupulous dealer will try to keep it. In that unfortunate event, I'll just take it to court.

Anyway, thanks again.

I will never do business with americredit after readon 12 pages of complaints agaisnt them when & if I do get a car I will not use americredit. if the dealership says americredit approved my loan I will refuse it & ask them to find someone else. You have a a right not to do business with a bad business, like americredit after reading many reports how they treat people unfairly. Many companies besides americredit are treating people unfairly these days!

No lender wants to do this normally. They won't make any money if they don't make the loan. But your proof did not meet their requirements, so Americredit decided not to do the loan.

Carmax did you a huge favor NOT letting you drive off. Most dealers WANT you to drive home, even if the loan is not fully approved, and approval is not certain. They want you to develop an emotional bond to the car and show it to your family and friends. Then if the loan is not approved, they call you back and tell you that you need to pay more down or take a higher APR so the loan can be approved.

It is more likely that someone will take the worse deal rather than give the car back because of the emotional attachment and fear of being embarrased when your friends ask what happened to the new car. So it could've been a lot more embarassing if they hadn't stopped you.

So its normal for them to do this after the car is sold? If the dealer proceeds with the final paper work, that means the dealer was under the impression that the loan was approved. Dealers will not proceed with final paper work, and hand over the keys until their is a final approval.

They where misleading. This is not good business.

Do you have any Idea how embarrassing this was!

Americredit is a sub-prime lender, meaning that they primarily foucs on granting loans to people with a poor credit history. Americredit has an automatic acceptance or denial system that is based on information you provide to the dealer. After that is entered, you submit your proof of income. After THAT, based on your submitted proof, an actual person (underwriter) determines the risk of granting you a loan.

A 1099 is a tax form for independent contractors. This means that these people are not "employed" by a particular company, but rather contracted by the company, and are not subject to the same rights as an employee. The company can stop "using" you at any time for any reason. Also, many times, a large portion of 1099 contractors income is based on commission. And as we all know, commission is generally not guaranteed (depending on the month/year you've had). These situations don't usually signify a "steady" income.

I am speculating that this is what probably happened: You passed the "automated" part of Americredit's screening. After submitting your documentation, they saw that you were an independent contractor, and needed proof that you would be able to pay on the loan. They asked for the tax return statements to show a history of enough income to judge whether or not you could afford the payments. Based on your submissions, they denied the loan because they felt you would not be able to afford your payments based on your income/employment situation.

It costs a LOT for a lender to repo a car. They felt the chances of it being repo-ed were significantly better than the chances of it not happening. They have the right to do this.

Put yourself in their shoes: would you lend $20K to a stranger who "sometimes" has an income, "sometimes" doesn't, and after reviewing their tax info, you found it would be hard for them to pay you back based on their previous earnings? Doubtful.

Lenders are a business. They do business to MAKE money, not lose it. And while I am NOT saying you wouldn't pay them, I AM saying your income history was not sufficient enough for them to trust that you WOULD pay. I do not work for a lender or a dealership; I understand this concept because I work in a business that uses the same logic. My business will deny people the ability to be our customers if we feel that (even STATISTICALLY) we will LOSE money by doing business with them.

If the dealership cannot find someone to finance you, they should refund your down payment and send you on your way. It's not a good situation to be in, but if you want people to loan you money, being employed (permanently) and having a steady income are 2 of your best bets.