Completely off topic auto finance question

[MiTT]

Alright, I'm reaching out to all of you car nuts out there with a completely off the wall question.

I've got a new car that has been on the dealers lot for a week now, but I can't pick it up because of some disconnects on the finance side.

I'm opting to finance through my bank because they can offer me a rate that is almost 3 points better than Audi Financial Services. Here's the snag - my bank needs a copy of the MSO (Manufacturers Statement of Origin) in order to cut the check because they tell me that it's the only document that will establish legal ownership. They (Chase) tell me that they require it on every loan they process.

The dealer doesn't have the MSO yet. They're telling me it could take another week to 10 days. They're also are telling me that they've never had to provide a copy of an MSO in 37 years of business; that a copy of the buyers agreement that I signed when I left my deposit has always been sufficient in the past. Frankly I'm suprised that the dealer can't provide even an electronic copy of the MSO. They told me that they come with the vehicles when that arrive at port, but that once they put the cars on the transport the MSO's are sent by standard post office. What the heck happens if the MSO is "lost in the mail"? Seems to me like Audi would have some sort of back up and that they would have advanced out of the stone age with regard to supporting documentation.

Anyone have any experience with a similar situation? Could the dealer just be jerking me around because I opted for outside financing? Could the loan officer at my bank not know what she's talking about? Will there ever be world peace?

I'm just bummed because the vehicle is there waiting for me, but I can't take it home. I'm going up to the dealership today for a conjugal vist. I know that it'll probably be resolved in the next week or so, but I've got new car fever!

 

[Brad225]

We purchased a new Tahoe for my wife a few months ago. Our bank (SunTrust) offer us way better financing so we took the discount from the dealer.
Donna dropped off the updated info our branch ask for and somehow it by passed the manager we always deal with and went to a processing center. They ask for the same MSO along with our corporate tax returns and P&L statements. The dealer said they would not have the MSO until after the closing.
After a day or so Donna called the branch manager to see what the problem was and the manager was unaware the information had been dropped off. She immediately called the processing and said she was issuing the loan and told us we could pick up the check within a couple of hours.

So, I don't know if there is someone else you can speak with since we didn't need the MSO in the end. Though this may be a Chase thing that can't be waved.

 

[Len44]

Here's the snag - my bank needs a copy of the MSO (Manufacturers Statement of Origin) in order to cut the check because they tell me that it's the only document that will establish legal ownership. They (Chase) tell me that they require it on every loan they process.

The loan documentation should be constructed in terms that the original MSO will be provided within 30 days after the loan is disbursed.

The dealer doesn't have the MSO yet. They're telling me it could take another week to 10 days. They're also are telling me that they've never had to provide a copy of an MSO in 37 years of business; that a copy of the buyers agreement that I signed when I left my deposit has always been sufficient in the past. Frankly I'm suprised that the dealer can't provide even an electronic copy of the MSO. They told me that they come with the vehicles when that arrive at port, but that once they put the cars on the transport the MSO's are sent by standard post office. What the heck happens if the MSO is "lost in the mail"? Seems to me like Audi would have some sort of back up and that they would have advanced out of the stone age with regard to supporting documentation.

The dealer should be able to provide an electronic version of the MSO right now! I would literally STAND on the General Manager's desk and demand that MSO.

I do not think that either this bank or the dealer are striving to be particularly helpful to you in this matter.

Best of luck on getting this resolved quickly, as well as your new Audi.

 

[amey01]

Just for a different point of view:

If you can't afford to go to the dealer and smash down the cash then you shouldn't be buying the car.

Yes - I know it's not the most common way, but it is my way.

 

[twich54]

Just for a different point of view:

If you can't afford to go to the dealer and smash down the cash then you shouldn't be buying the car.

Amey, just so you know....in this country we have many financing options....including 0%, so why use your 'cash' when someone will give you a 'free ride' and you can leave money wherever, working for you !

 

[amey01]

Amey, just so you know....in this country we have many financing options....including 0%, so why use your 'cash' when someone will give you a 'free ride' and you can leave money wherever, working for you !

Agreed, however "there's no such thing as a free lunch." 0% means the lender is not making any money. Well, apparently not anyway. But they're making money other ways. If the dealer offers you 0%, it is just a hidden way of not offering you the best price he can on the car.

As I said - it is just my way - I know most people might think I'm nuts, but I hate debt and avoid it at all costs.

 

[JMAUSGP]

I used to be in the F & I business and either the dealer or the bank are doing their best to make this difficult.

Now I have not been in F & I since the collapse of the world banking system so lending has definitely changed somewhat since the 1980s, but someone seems to be to be making this overly difficult.

As hard as it is to sell cars I would put the heat on the dealer to, he should be more motivated to help you than the bank.

The banks are..............well, try to work out what you need with the dealer, afterall he is the one who has a sale to lose, the banks may not want to loan the money, they are too busy taking the taxpayers money.

 

[SteveInNC]

I've bought and financed a lot of vehicles over the years. I've never heard of this before. It may have taken place behind the scenes, but in general, I've applied at the bank for the loan, they've talked to the dealer when we come to terms, and I drive away with the car/boat. The dealer applies for the vehicle title with the State, and the title (and insurance) shows the bank as a lien holder. The title stays in the bank's possession until you pay off the loan. More recently, I've paid cash for vehicles, but the same general process takes place minus the lien holder.

 

[Len44]

I used to be in the F & I business and either the dealer or the bank are doing their best to make this difficult.

The banks are..............well, try to work out what you need with the dealer, afterall he is the one who has a sale to lose, the banks may not want to loan the money, they are too busy taking the taxpayers money.

As I have said for many, many years -- "The way to fix most of what ails this country is to lock up all the bankers."

This belief of mine has become even stronger over the past couple of years...

 

[MDSPHOTO]

Amey, just so you know....in this country we have many financing options....including 0%, so why use your 'cash' when someone will give you a 'free ride' and you can leave money wherever, working for you !

0% financing does not mean zero for the dealer. There are document fees, finance fees, holdback fees, etc. that help compensate the dealer for what they lose in interest fees.

 

[Bernard]

As I have said for many, many years -- "The way to fix most of what ails this country is to lock up all the bankers."

This belief of mine has become even stronger over the past couple of years...

I am amazed at the number of "mom and pop" banks in the U.S.

 

[MiTT]

Happy Ending

Well, thanks to the input of you folks as well as some additional research on my own, I went to the bank on Saturday and asked to meet with the loan officer. I explained what I'd discovered to her and challenged her to tell me why Chase required the MSO. She told me that Chase didn't, but that the underwrited did, so I asked her if we could call the underwriter because it certainly didn't seem like a legal requirement. She did so and guess what, the underwriter said that they certainly did NOT need it, and that they had already approved the loan the previous Monday.

They were able to get me a check and an hour later I was at the dealers picking up the car. As soon as I walked in my sales guy came up and told me that they had just recieved the MSO in the mail. Go figure.

At least I got to drive the car home.

Adam, I get what you're saying. I usually pay cash for most everything, but you're not privy to all of the circumstances here. I've got a vehicle that was part of a previous business coming off lease and a wife who's gone back to school full time, so I didn't want to deplete savings for this vehicle right now. The thing that made the most sense to me was to put 50% down and then finance the balance; fully intending to pay it off in 2 years max with as small a payment and the best interest rate possible. It made the best fincancial sense to me right now.

At least there is a happy ending...

 

[amey01]

Adam, I get what you're saying. I usually pay cash for most everything, but you're not privy to all of the circumstances here. I've got a vehicle that was part of a previous business coming off lease and a wife who's gone back to school full time, so I didn't want to deplete savings for this vehicle right now. The thing that made the most sense to me was to put 50% down and then finance the balance; fully intending to pay it off in 2 years max with as small a payment and the best interest rate possible. It made the best fincancial sense to me right now.

At least there is a happy ending...

And very valid too. It was just a "point of view". Anyway - enjoy the car - it looks great!

 

[Brad225]

Sweeeet, More pics please.

 

[JMAUSGP]

What no racing stripe!

 

[Bernard]

No vanity plates either. Come to think of it, no plates at all !!

 

[raygunn]

Congrats on another Audi!!!

I have automotive separation anxiety issues, so my TT is now 9 years old and has 175,000....

Maybe next year

 

[MiTT]

I have automotive separation anxiety issues, so my TT is now 9 years old and has 175,000....

Maybe next year

Thanks Ray. It was precisely because I misssed my old TT so much that I went back into an Audi. So far I'm really enjoying it. I'll post more pictures when it stops raining around here long enough that I can clean it up.

 

[Dominick22]

Not that it matters a whole lot anymore, but the thing everyone is missing regarding your MSO ordeal is that AUDI controls the MSO distribution. The dealer is simply the recipient. Just they are for the actual physical car itself. The dealer can inquire through AUDI about expediting it, but they can't "make" anything just appear.

Imagine if you expected your car to be delivered by AUDI on Thursday and when you came by on Thursday, it was not there...are you going to stand on the managers desk and demand that it appear? lol I understand that it seems like it should be more simple because it is a sheet of paper, but it isn't. If AUDI is slow to print it and send it, well then then that's just the way it is.

Dominick

 

[Len44]

Not that it matters a whole lot anymore, but the thing everyone is missing regarding your MSO ordeal is that AUDI controls the MSO distribution. The dealer is simply the recipient. Just they are for the actual physical car itself. The dealer can inquire through AUDI about expediting it, but they can't "make" anything just appear.

Imagine if you expected your car to be delivered by AUDI on Thursday and when you came by on Thursday, it was not there...are you going to stand on the managers desk and demand that it appear? lol I understand that it seems like it should be more simple because it is a sheet of paper, but it isn't. If AUDI is slow to print it and send it, well then then that's just the way it is.

Dominick

No offense, but my dealer demanded and received the electronic version within the hour.

'Course, I have no idea about how Audi works their system...