PeopleFirst auto loan, any comments?
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Better check with your dealership first if they accept it. I know a lot of dealerships don't like to deal with PeopleFirst or eLoan because it takes a lot longer to clear their check, so they usually don't get their money as quickly as a normal bank loan.
If your dealership doesn't accept their draft check, you're S.O.L.
If your dealership doesn't accept their draft check, you're S.O.L.
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Well, now that I'm a little bit more familiar with the inner working of the auto finance world, I can understand the dealership's dilema better.clyde325xiT said:
I certainly understand the consumer's point of view. I have a check in my hand from PeopleFirst or eLoan, why is my money not as good as say, if I have a check from xxx Bank? The reason is the longer it takes for the check to clear, the worse the dealership's cash flow is. Basically, the entire dealership stock is bought from a manufacturer with BORROWED money. The longer it takes for them to get paid for selling a car, the more interest they'll need to pay. Normally a retail loan contract takes a couple of days to clear and dealership gets funded before the next "cycle", but if it's going to take them a couple of weeks to get funded, it's going to cost them a few hundred bucks in interest hence eat into their profit margin.
The fact still remains that PeopleFirst and eLoan takes a bit longer to fund their contracts than traditional banks, credit unions, or even manufacturer's own financial services. Hence finance managers will pull every stop that they can to try to convince you NOT to fund through PeopleFirst and eLoan. :dunno:
I do agree though, if your dealership won't take PeopleFirst or eLoan, walk...There are more than enough dealerships out there that WILL sacrifice a few bucks for a good relationship with a customer. Reward those that are willing to go the extra mile for you.:thumbup:
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By the way, what's their current interest rate for New Auto Purchase?
I was going to use them too when I was going to buy a loaded 2002 Celica GT-S last Christmas, but lucky for me, the dealership screwed up. Hence, I didn't get a chance to use the check they sent me.
Some dealers are quite picky about the way they get their money, so you should check with them first. To me, money is money, no matter how you look at it. :dunno:
I was going to use them too when I was going to buy a loaded 2002 Celica GT-S last Christmas, but lucky for me, the dealership screwed up. Hence, I didn't get a chance to use the check they sent me.
Some dealers are quite picky about the way they get their money, so you should check with them first. To me, money is money, no matter how you look at it. :dunno:
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11,262 Posts
I'm well aware of why dealers are reluctant and I don't blame them for that. It's when/if they refuse. My dealer took a post dated personal check for the full amount less the $1k deposit. They didn't submit the check to my bank until about a month after the date on the check.The HACK said:
Wow, got a reply in less than 15 minutes, as promised. Very nice guy explained what the deal was and if my next car deal is successful, I'll drive a new car financed by people1st...
This was the easiest loan application ever, took less than 2 minutes to fill out online and a very quick response. I'm speechless... but still can write!
By the way, their deal is much better than the BMW FS's own Elite Tier rate for customers with CB rating of 720+. I can't believe that BMW FS can stay in business with such horrible customer service, very bad online banking experience and now inferior rates. You people financing thru BMW FS better wake up for your next loan.
Now, which bimmer do I want next? This 323i surely has been a lot of trouble lately...
:tsk:
What can I say, in my opinion there is no better car for the price even with some window and moonroof problems.
This was the easiest loan application ever, took less than 2 minutes to fill out online and a very quick response. I'm speechless... but still can write!
By the way, their deal is much better than the BMW FS's own Elite Tier rate for customers with CB rating of 720+. I can't believe that BMW FS can stay in business with such horrible customer service, very bad online banking experience and now inferior rates. You people financing thru BMW FS better wake up for your next loan.
Now, which bimmer do I want next? This 323i surely has been a lot of trouble lately...
:tsk:
What can I say, in my opinion there is no better car for the price even with some window and moonroof problems.
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211 Posts
People First will also do European Delivery Financing! Used them for my 330i last October.
Hack, they're not in the same boat as Eloan. The check they use isn't a bank draft, but a bank check. As long as the vin number and the buyer's signature is on the check it is honored upon presenation at the bank. Went through this crap with the dealer when I purchased my car, as soon as they got the idea that the check was equivilant to a "Credit Union" check things went smoothly.
Eloan by contrast requrires the dealer to submit a boatload of docs and tends to hold onto the cash before sending it in.
Perhaps Jon has some experience with eloan / people first to share?
Hack, they're not in the same boat as Eloan. The check they use isn't a bank draft, but a bank check. As long as the vin number and the buyer's signature is on the check it is honored upon presenation at the bank. Went through this crap with the dealer when I purchased my car, as soon as they got the idea that the check was equivilant to a "Credit Union" check things went smoothly.
Eloan by contrast requrires the dealer to submit a boatload of docs and tends to hold onto the cash before sending it in.
Perhaps Jon has some experience with eloan / people first to share?
I found PeopleFirst's rates to be way too high, nearly 8 percent, versus 5.9 percent which my credit union offered. Instead, I decided to finance the balance of the new car from the home equity rollover facility, prime plus 1/4 - - - with obvious tax advanteages. :bigpimp:
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Not sure what rate you were looking at nor your credit condition, but the highest rate they're currently charging for a new car is 6.25% 61-72Mo.
37-60 Mo is currently at 5.49%
And the service is good as well, no issues there either.
37-60 Mo is currently at 5.49%
And the service is good as well, no issues there either.
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I stand corrected...Last time I was at a credit union/auto dealership conference all the dealers were b*tching about eLoan and the hoops they have to jump through just to get funded. They were lumping all the on-line loan sharks together and somehow PeopleFirst was also lumped with eLoan.JT - '02 330i said:
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Yes. According to PeopleFirst, their checks clear as fast as any other bank check. :dunno:
My dealer tried to refuse the peoplefirst check, but I threw a fit. They ended up calling peoplefirst and asked them some questions (my deal was ED so it was partiuclarly tricky regarding the timing, title, etc) and then they realized they could take it.
My dealer tried to refuse the peoplefirst check, but I threw a fit. They ended up calling peoplefirst and asked them some questions (my deal was ED so it was partiuclarly tricky regarding the timing, title, etc) and then they realized they could take it.
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