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  1. #1
    Join Date
    Apr 2018
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    7

    Default What Documents Must You Sign When Buying a Vehicle

    My question involves a consumer law issue in the State of: Ohio

    I'm looking for a checklist of documents that I would be required to sign when purchasing a vehicle. My gf purchased our first vehicle last year and we felt absolutely horrible afterward due to dealing with the finance manager. There were several documents to sign that I was not aware would be required and she just went through with them while I observed. When they finally had the car ready for her to drive the finance manager still came out twice and had her sign things while she was sitting in the car. It was just very odd because I would think everything would be completed in the office. I believe she read through everything but it was still a very excruciating experience and just rubbed me the wrong way.

    She recently lost her car after being rear-ended. After another excruciating experience with the insurance company we're now looking for another vehicle and I'd like to know what I will be expected to sign. I will be financing the car because now her credit has been damaged by the three inquiries the dealership put on her history. Even though the car was totaled and the insurance has paid off everything there is no consideration to credit-rating and financing a new car while the old one is still on your credit. Payments were made on time, but credit karma is saying the reason for her lower-than-expected score is due to the hard inquiries, so she can't finance a new car at a reasonable rate.

    I realize it will vary based on the type of purchase but here's what was signed last time. There are also some anomalies - if you feel like commenting on them I'd appreciate that as well but this is not something where I'm disgruntled with the dealer - just trying to see if this is standard:

    1. Mechanical Failure Service Contract: we got the extended warranty. I would not be getting this on our next purchase.
    2. Total Loss Protection Addendum: GAP insurance
    3. Credit application - signed at 2:51 PM
    4. Odometer Disclosure Statement: this is for our trade-in at the time. We will not be trading in a vehicle so I do not expect this to be a required.
    5. Odometer Disclosure Statement: this is for the new car. I expect this to be included.
    6. Statement of credit score
    7. Another credit application: signed at 3:36 PM. We're not sure why there are two of the same document but they have different signatures from my gf. We believe this is one of the papers she was handed to sign while sitting in the car.
    8. Conditional (Spot) Delivery Agreement: this document states summarily that the purchase contract can be nullified by either party within 5 days.
    9. Ohio Disclosure Information: statement that if the vehicle (VIN provided) is defective we may be entitled to replacement or compensation under Ohio state law.
    10. We Owe - Delivery Confirmation: statement that the vehicle was inspected by the purchaser and is satisfactory.
    11. BMV Registration Information and Authorization to Register: appears to be a BMV document for registering the vehicle.
    12. Application for Certificate of Title to a Motor Vehicle: appears to be another registration document and a statement of purchase price, trade-in value, and taxes.
    13. Retail Purchase Agreement: a list of all charges. Original price, GAP, extended warranty, "document fee", trade-in deduction, sales tax, title fee, license fee, and rebate.
    14. Retail Installement Seal Contract: statement of APR, amount financed, total cost, # of payments.
    15. Other Important Agreements: terms and conditions of finance payments.
    16. Arbitration Provision: statement that any disagreement between purchaser and the dealer will be resolved by arbitration and not in court.

    Again - I realize it may vary but given the other items I purchased (GAP, service contract) does that look proper? Is there any site that states what the dealer must present by state? So for example, if the finance manager hands me something and says "the state requires this of us" is there something you know of that I can visit to confirm?

    Thank you for reading through the whole post and I appreciate your feedback.

  2. #2
    Join Date
    Mar 2013
    Posts
    17,145

    Default Re: Checklist of Sale Documents

    All I can suggest is that, before you EVER hand over any money or sign anything, READ, READ, READ everything and understand what you are signing.

    Car dealers are liars and thieves. They go to school to learn how to just stop sort of anything criminal.

    If you feel rushed, hold all the papers in your hand, stand up and say "I don't understand any of this so I'm taking it home to study and I'll be back tomorrow."

    Make sure you hold the papers close as they will try to grab them from you.

    They will tell you the deal is only good for today, which is BS, because you can always get a better deal someplace else tomorrow.

    Use google for information about shady car dealers. Better yet, get your financing in place from a local bank or credit union and then buy a car from a private party. Just make sure you get the car inspected by a mechanic and google how to buy a car from a private party.

  3. #3
    Join Date
    Apr 2018
    Posts
    7

    Default Re: Checklist of Sale Documents

    I agree about reading everything - that was not in question. But suppose you agree on a price with the salesman, he runs your credit, and then something the finance manager hands you is unacceptable? Suppose you just don't feel comfortable, as you said, and then want to go somewhere else? You see - The first place I was hoping to start was the checklist of documents. For instance - do any of those documents I listed seem unnecessary? What if the GAP insurance agreement contains clauses that basically nullify the insurance (very sneaky - but just presenting the possibility).

    Well, they've already run your credit which impacts your worthiness, and in our case they ran credit three times. If we were to leave and go somewhere else then the score is now significantly lower, and a higher APR would be necessary. Rather than go through all that and fall into a pitfall of credit applications I'm trying to get as much information as I can before I start signing papers, that's all.

  4. #4
    Join Date
    Jul 2010
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    7,646

    Default Re: Checklist of Sale Documents

    Quote Quoting Rom9
    View Post
    Well, they've already run your credit which impacts your worthiness, and in our case they ran credit three times.
    All credit inquiries related to car search within a certain period count as a single inquiry for purposes of your score.

  5. #5
    Join Date
    Mar 2013
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    17,145

    Default Re: Checklist of Sale Documents

    But suppose you agree on a price with the salesman, he runs your credit, and then something the finance manager hands you is unacceptable?
    That's easy.

    Before you hand over any money or sign anything you insist on the financing being in place and if you don't like what the finance manager is showing you is unacceptable or makes you uncomfortable, you get up and walk out.

    The first place I was hoping to start was the checklist of documents. For instance - do any of those documents I listed seem unnecessary?
    I imagine that a lot of them are required by law, some for getting the loan, some for just purchasing the car. As you note, a lot depends on the circumstances.

    That your GF signed two credit applications is on her for not reading them and understanding what she was doing. She could have said no and demanded an explanation. The liars and thieves are experts at rushing you through a deal so you end up not knowing what you are doing.

    What if the GAP insurance agreement contains clauses that basically nullify the insurance (very sneaky - but just presenting the possibility).
    Again, before you hand over any money or sign anything you ask for a sample GAP policy and take it home and read it.

    Your power against the liars and thieves lies in your ability to withhold your money and your signature until they do what you want.

    Well, they've already run your credit which impacts your worthiness, and in our case they ran credit three times. If we were to leave and go somewhere else then the score is now significantly lower, and a higher APR would be necessary. Rather than go through all that and fall into a pitfall of credit applications
    I suspect that the dealer does that on purpose to limit your options with anybody else.

    If you want to avoid that credit scam use your bank or credit union, qualify for ex dollars and then bring a check to the dealer along with whatever down payment you'll need.

  6. #6
    Join Date
    Apr 2018
    Posts
    7

    Default Re: Checklist of Sale Documents

    At the time my gf financed her car she qualified for 4.92%. It's been 4 months since she financed her car. The accident was in March. The offender's insurance company has tendered her a settlement but has not yet provided a check - should be Tuesday. The GAP claim is almost finalized. However, the offender's insurance company stopped paying for a rental car on Friday so she needs to get a new car asap. The problem is that now when she looks at pre-qualify offers she's getting the range of 12%. After checking creditcarma she sees that nothing has changed on her report other than the 3 hard inquiries and the auto loan. Even if the loan is paid off by insurance on Tuesday she still has to wait at least 30 days for it to be updated on her credit report and THEN apply for new financing. This is why I'm looking at financing because her credit is impacted until everything clears. Does that seem right to you or is the credit hit supposed to process differently?

  7. #7
    Join Date
    Mar 2013
    Posts
    17,145

    Default Re: Checklist of Sale Documents

    the offender's insurance company stopped paying for a rental car on Friday
    That's common practice. Has she asked for an extension on the rental until she gets the check? Can she pay for a rental herself for a couple of days? Does she have rental reimbursement on her own insurance?

    The problem is that now when she looks at pre-qualify offers she's getting the range of 12%. After checking creditcarma she sees that nothing has changed on her report other than the 3 hard inquiries and the auto loan. Even if the loan is paid off by insurance on Tuesday she still has to wait at least 30 days for it to be updated on her credit report and THEN apply for new financing. This is why I'm looking at financing because her credit is impacted until everything clears. Does that seem right to you or is the credit hit supposed to process differently?
    All I know is that changes in credit scores are gradual. Looking back over my own scores it does appear to take a month to adjust back up from the dips.

  8. #8
    Join Date
    Apr 2018
    Posts
    7

    Default Re: Checklist of Sale Documents

    She has asked for an extension which has been denied. She is currently using a rental on her own dime. Her insurance does have rental reimbursement but it would cause her rates to go up so that option is not being used.

    The credit issue seems ridiculous. You buy a car, let's say you get 3 hard inquiries coming from 1 dealer (which happened in this case). You get rear-ended, all paid for by insurance, but when trying to finance a new car now the outstanding loan and hard inquiries show up on your credit, so you have to pay a higher interest rate. Get rear-ended again or other accident in which you're not at fault? Insurance pays for everything - that's fine. But now you have even more derogatory information on your credit so forced to take an even higher interest rate. Why does the insurance company not clear your credit so you're faced with the same financing options (assuming no other factors, of course) when you originally got the car? Sure we all try to avoid accidents, but if you're not at fault this seems ridiculous.

  9. #9
    Join Date
    Jul 2010
    Posts
    7,646

    Default Re: Checklist of Sale Documents

    Her credit will be cleared after the loan is paid off and the report updates. There is nothing the insurance company can do to speed that process. If you have any cash reserves, either continue paying for a rental or buy a beater with cash to get her through until the credit report clears up

  10. #10
    Join Date
    Apr 2018
    Posts
    7

    Default Re: Checklist of Sale Documents

    Thanks - we'll proceed that way I just wondered if that seemed proper. We also have a 30-min meeting with an attorney paid for by work so I'll see if he agrees with the situation and nothing more can be done.

    How about the documents I listed? Seem correct other than the 2nd application for credit?

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