Honda Dealership Natick, MA
Auto Financing: When a Bank Denies Financing at a Honda Dealership in Natick, MA
It is common for a Honda dealership in Natick, MA, to let you drive home in your new vehicle before they know whether a financial institution will finance the loan. In this situation, you sign the sales contract and take possession of the vehicle. Things feel finished, but they aren’t.
What Usually Happens?
After working out a deal with a Honda dealership in Natick, MA, and taking your vehicle home, there are a few different ways the financing can play out. For most people, the bank approves the financing. The bank either agrees to the payment plan the dealership sets up or the bank makes slight changes to the agreement. These changes can include such things as an additional down payment or higher interest rates. Unfortunately, there are situations where the financial institution just denies the financing altogether. Why does this happen, and what do you need to do?
Why Does Financing Get Denied?
Financial institutes that work with dealerships in Natick, MA, deny auto financing for all sorts of reasons. The biggest reason is poor credit. While it a dealership explores your credit when making the decision to preapprove you, the financial institution does take a much closer look. Often, the bank denies the financing because it struggles to verify information, such as where you live or how much you earn. The dealership does not dig as deeply when it makes the decision to preapprove, so sometimes the decisions don’t match up.
Obviously, a Honda dealership in Natick, MA, is in the industry of selling vehicles. So, it is in the dealership’s best interest to find you another source of financing. Fortunately, the sales contract gives the dealership some time to help you find another financing option. Most of the time, the dealership has 45 days from the time you signed the contract. If the dealership is unable to find an alternative, you either must find your own financing or return the vehicle.
Returning the Vehicle
If all efforts to find alternative financing in Natick, MA, do not pan out, you must return the vehicle. Read the sales contract to see what the dealership’s policy is for any type of trade-in vehicle or down payment you made. In most cases, the dealership gives it back if you voluntarily surrender the vehicle if financing does not work out.
Visit Boch Honda in Natick, MA, if you want to have a Honda dealership you can trust to assist you in locating auto financing for your new vehicle. We want to help you.