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I filled out a finance application while I was bored for an $8000.00 Vespa. I simply wanted to see if I would be approved. Today I received a reply that not only was I approved but the application has been submitted to "a" bank and that I should come down and pick up my scooter. Am I obligated to do this? Will I start receiving a bill in the mail? It's way way too easy to buy a vehicle these days it seems!
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Veni, Vidi, Posti
![]() GTS 300ABS, Buddy 125, Buddy Kick 125
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Have you already signed a purchase agreement? If not, it doesn't sound like you would be obligated to proceed with the loan. A little advice - maybe you should take $8000 decisions more seriously.
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OP
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Thanks. I checked the dealer site. It was a simple finance application. Nothing more. Their email was a bit over reaching I'd say.
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Veni, Vidi, Posti
![]() LX190 Friday afternoon special, [s]Primavera[/s], S50, too many pushbikes
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Obviously a dealer tactic to push a sale. Call them up and say not interested and you aren't buying a scooter.
On the other hand, you were interested enough to fill out the credit app. If that is the case...let us know what model and color you picked out. ![]() |
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saggezza di scala
2009 'Burma Shave' Red GTS 250ie
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saggezza di scala
![]() 2009 'Burma Shave' Red GTS 250ie
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Posts: 7068 Location: Israel |
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First of all, shalom and welcome from Israel.
Despite the seemingly pushy tactic on the part of the dealer (or at least their finance department), I hope this won't influence your decision. There are good dealers all over the country (such as SDG!)... and many of them deliver all over the country to wherever you are (such as SDG!). I'm not saying you should go that route... but your local dealer should know you have a choice... and relate to you accordingly. Good luck. |
Ossessionato
![]() 2007 250 GTS, 1980 P200E, 2010 ThunderFly 190 (SOLD) 2015 Yamaha SMax (SOLD)
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Many dealers use their financing options to help close deals as well. They offer many options for special no interest promos, deferred payments, etc...
I work for a consumer finance company (might have been my company). You filled out a credit application and the dealer is required to submit it. This will show as an inquiry on your credit bureau, but you have no obligation on this loan until you finalize a purchase agreement, and it will not appear as a tradeline on your bureau until that time. The inquiry can have a negligible impact on your credit bureau score, but credit inquiries will only have a significant impact if done repeatedly in a short period of time. Depending on your current finances and any promotional offer, it might be a good option...but only you can make that decision. From my perspective, you didn't really screw up that badly. |
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Ossessionato
2013 Vespa LX150ie, 1968 Vespa Sprint 150
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Ossessionato
![]() 2013 Vespa LX150ie, 1968 Vespa Sprint 150
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Just inform them you are no longer interested. If you are uncomfortable that they might try to muscle you in some way to come and purchase, send them something in writing officially canceling the contract.
Unless you signed a contract stating you would take ownership, you are under no obligation for the purchase. If you did, you have three days and in some states, more time. ⚠️ Last edited by Paddlenround on UTC; edited 1 time
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Veni, Vidi, Posti
![]() 2008 MP3 500, 2013 BV350, 2020 Vespa Sei Giorni, 2008 Vespa S150
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Paddlenround wrote: Just inform them you are no longer interested. If you are uncomfortable that they might try to muscle you in some way to come and purchase, send them something in writing officially canceling the contract. http://www.howtolaw.co/terminate-a-credit-contract-392214 Unless you signed a contract stating you would take ownership, you are under no obligation for the purchase. If you did, you have three days and in some states, more time. |
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Ossessionato
2013 Vespa LX150ie, 1968 Vespa Sprint 150
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Ossessionato
![]() 2013 Vespa LX150ie, 1968 Vespa Sprint 150
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My link was to a NZ site.
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Having sold cars I am very careful not to lead people on that I'm a possible buyer unless I actually am. Tying up a salesman who more than likely makes a minimum wage draw is ok if the show room is empty but if he could be catching genuine buyers it's taking a sales commission out of his pocket.
I lke to kick tires as well as the next guy but if someone else comes into the showroom I make sure I turn the salesman loose. |
Molto Verboso
![]() 2016 Piaggio BV-350
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Pre-approved finance isn't a purchase for a specific bike. I'd just call them and say you're no longer interested, but thanks anyway.
Or if it's a good deal, maybe I'd actually just buy the bike. After all, you must have been interested to query the possibility of finance anyway? |
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One thing to consider is that this approved credit may affect your credit score (if you're that kind of nerd). If you are interested you could probably get a better financing rate elsewhere but it may also show up to the rating agencies that you've been "applying around" for credit which is normally not seen as good.
I'm no expert but I do pretend to be one sometimes. It may be of interest to pull your credit report (not just your score) and see if that shows up on there. |
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Dooglas wrote: Have you already signed a purchase agreement? If not, it doesn't sound like you would be obligated to proceed with the loan. A little advice - maybe you should take $8000 decisions more seriously. |
RIP
Moderator
![]() 2006 PX 150 & Malossi Kitted Malaguti Yesterday (Wife's)
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Consumer protections today are much better than they were 40 years ago.
Back in the 70s, I was shopping around for a car. One dealer decided to do a credit check to be prepared to provide "instant credit" if I came back. Got my basic info from the local credit bureau, based strictly on my name and city of residence, and submitted a credit request to his financing firm. NO signature or approval required. About a month later, as required by law, I get a letter from the finance company that my application for a loan was denied. Reason: Unable to verify bank account. Of course they couldn't. My home town bank wouldn't release anything without proof of my authorization, not something that many banks did at the time. So, I called the finance company and asked what was going on. They said they received a request from the dealer and processed it. Everything was OK, other than my bank refusing to verify anything. I said, "My income is OK?" They said it was. Obviously, the dealer made up an income entry. To make a long story short, it took a couple of Registered letters, but any and all evidence of this credit inquiry and the "turn down" disappeared, but for a while, the local credit bureau showed that I had an adverse credit action. Oh yes, since I didn't get a warm fuzzy from the dealer in the first place, I never returned and had purchased elsewhere, in cash, from another dealer before I got the turn down letter. |
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Re: Finance F-up. Advice?
Fatmarvin wrote: I filled out a finance application while I was bored for an $8000.00 Vespa. I simply wanted to see if I would be approved. Today I received a reply that not only was I approved but the application has been submitted to "a" bank |
Banned
2009 GTS 250, 2013 Buddy 125, 2014 Triumph Bonneville
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If you do decide to make a vehicle purchase someday, don't finance it through the dealer. first check with your own bank, and join a credit union if you have that option, generally speaking, their rates can't be beat.
and keep an eye on your credit rating and try your best to keep it at least in the "good" area. |
Moderaptor
![]() The Hornet (GT200, aka Love Bug) and 'Dimples' - a GTS 300
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Re: Finance F-up. Advice?
Matty G wrote: Fatmarvin wrote: I filled out a finance application while I was bored for an $8000.00 Vespa. I simply wanted to see if I would be approved. Today I received a reply that not only was I approved but the application has been submitted to "a" bank Even though I've got a reasonable pension income, decent sums of money in several bank accounts and normally buy everything with cash - without the 'credit rating' being on tune I'd never be able to borrow money, not even get a bank loan from the aforementioned banks. A different take on personal finance is all. |
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The credit rating is the thing. I got sucked into a sham (BlueGreen timeshare) many years ago. A real bait and switch. Long story short, we paid on it for a while and after not being able to use it as we were told, tried to get out. No such luck. We simply defaulted. Nobody got screwed except us. Our credit rating still sucks. Oddly enough, I cannot "qualify" to borrow $3500 from my own bank, for a used Vespa, but can borrow $6000 from Vespa (Sheffield).
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Ossessionato
2013 Vespa 300 Super, 2022 Kymco AK 550
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Ossessionato
![]() 2013 Vespa 300 Super, 2022 Kymco AK 550
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Credit Score Huge Advantage in the USA
Credit score is driving everything today.
1. Interest rate on a Home Mortgage Loan 2. Interest rate on Auto/Scooter Financing 3. Part of a Employment Decision 4. Pricing on Auto/Home Insurance If you have been fortunate enough to manage money well and live within your means, the world will come to you. Upside: No matter how bad your credit posture, bankruptcy, you can completely rebuild to the best rating in 6-7 years. Bob Copeland |
Veni, Vidi, Posti
![]() 2008 MP3 500, 2013 BV350, 2020 Vespa Sei Giorni, 2008 Vespa S150
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Re: Finance F-up. Advice?
Matty G wrote: Fatmarvin wrote: I filled out a finance application while I was bored for an $8000.00 Vespa. I simply wanted to see if I would be approved. Today I received a reply that not only was I approved but the application has been submitted to "a" bank |
Moderaptor
![]() The Hornet (GT200, aka Love Bug) and 'Dimples' - a GTS 300
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Re: Finance F-up. Advice?
WEB-Tech wrote: Matty G wrote: Fatmarvin wrote: I filled out a finance application while I was bored for an $8000.00 Vespa. I simply wanted to see if I would be approved. Today I received a reply that not only was I approved but the application has been submitted to "a" bank |
Rocket Man
![]() GTS 300 ABS 'Drake', GTS 250 (sold), LX 150 and Delta IV rocket. ( Retired. Not my problem anymore)
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Re: Finance F-up. Advice?
jimc wrote: WEB-Tech wrote: Matty G wrote: Fatmarvin wrote: I filled out a finance application while I was bored for an $8000.00 Vespa. I simply wanted to see if I would be approved. Today I received a reply that not only was I approved but the application has been submitted to "a" bank |
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Potential lenders like to see a good pattern of on time payments. Paying off loans removes those payments from your profile, thus eliminating your track record of finance.
In my lifetime, I have paid off 4 mortgages. Not one of them shows on my credit score. Neither do countless auto loans paid off and personal lines of credit. Once you wipe the debt slate clean, it is like starting over without any credit. It does suck. |
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Veni, Vidi, Posti
MP3 500, GTS 250 (both 2008 MY), 2013 Piaggio BV 350, 2014 Can Am Spyder RT
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Veni, Vidi, Posti
![]() MP3 500, GTS 250 (both 2008 MY), 2013 Piaggio BV 350, 2014 Can Am Spyder RT
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NightWing wrote: Potential lenders like to see a good pattern of on time payments. Paying off loans removes those payments from your profile, thus eliminating your track record of finance. In my lifetime, I have paid off 4 mortgages. Not one of them shows on my credit score. Neither do countless auto loans paid off and personal lines of credit. Once you wipe the debt slate clean, it is like starting over without any credit. It does suck. |
Ossessionato
![]() 2012 Kymco Like 200i (Sold), 2018 FLSL
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NightWing wrote: Potential lenders like to see a good pattern of on time payments. Paying off loans removes those payments from your profile, thus eliminating your track record of finance. In my lifetime, I have paid off 4 mortgages. Not one of them shows on my credit score. Neither do countless auto loans paid off and personal lines of credit. Once you wipe the debt slate clean, it is like starting over without any credit. It does suck. |
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Molto Verboso
2006 Suzuki S40 - 1978 Puch Pinto (sold) - 2006 Piaggio BV250 (R.I.P.)
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Molto Verboso
![]() 2006 Suzuki S40 - 1978 Puch Pinto (sold) - 2006 Piaggio BV250 (R.I.P.)
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TroutBum wrote: NightWing wrote: Potential lenders like to see a good pattern of on time payments. Paying off loans removes those payments from your profile, thus eliminating your track record of finance. In my lifetime, I have paid off 4 mortgages. Not one of them shows on my credit score. Neither do countless auto loans paid off and personal lines of credit. Once you wipe the debt slate clean, it is like starting over without any credit. It does suck. I initially started paying for EVERYTHING with my credit card. I wouldn't overspend, I just would use my credit card instead of my debit card. But this turned into my credit reports reporting absurdly high balances. Like 70% utilization (because I'm a young'un and have very low limits) this affecting my credit score negatively. It's been a sucky learning process. |
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Madison Sully wrote: NightWing wrote: Potential lenders like to see a good pattern of on time payments. Paying off loans removes those payments from your profile, thus eliminating your track record of finance. In my lifetime, I have paid off 4 mortgages. Not one of them shows on my credit score. Neither do countless auto loans paid off and personal lines of credit. Once you wipe the debt slate clean, it is like starting over without any credit. It does suck. |
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Re: Finance F-up. Advice?
jimc wrote: WEB-Tech wrote: Matty G wrote: Fatmarvin wrote: I filled out a finance application while I was bored for an $8000.00 Vespa. I simply wanted to see if I would be approved. Today I received a reply that not only was I approved but the application has been submitted to "a" bank |
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Madison Sully wrote: NightWing wrote: Potential lenders like to see a good pattern of on time payments. Paying off loans removes those payments from your profile, thus eliminating your track record of finance. In my lifetime, I have paid off 4 mortgages. Not one of them shows on my credit score. Neither do countless auto loans paid off and personal lines of credit. Once you wipe the debt slate clean, it is like starting over without any credit. It does suck. |
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What that guy said^^. Of course here is little you can do about paying taxes but it great not to owe anything other than that.
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