A few weeks ago, I faced a minor disappointment when a used car I wanted to buy was sold two hours before my appointment to test drive it. I was pretty bummed about it, because it was a pretty hot deal for an 2004 BMW 325i, but I tried to make it into a learning experience. Next time, I said to myself, I’ll move faster. I won’t miss out on another deal.
Then, I found it: a low mileage 2004 BMW Z4 with the upgraded 3.0 L engine and all of the options for thousands less than Kelley Blue Book Value. I immediately emailed to set up an appointment. The owner was going out of town, so I had to wait a week, but during that week I emailed a few questions in order to let him know that I was interested. We finally made an appointment for Wednesday, so on Tuesday I applied for a used car loan through my father’s credit union. I really wanted that car.
Then on Wednesday afternoon, I received a call around lunchtime from the owner of the Z4. Another party was driving up from Richmond to see the car and would arrive hours before me. And they had cash.
Of course, the owner sold it to the party from Richmond. He offered a half-hearted email apology: “Sorry man. They got here first. They had cash.”
Once again, I had been out-maneuvered.
On the upside, I called the credit union and it turns out I can keep my loan pre-approval status for 2 months. They were able to remove the references to the Z4, so it’s not even tied to a specific car.
They offered 7.7% APR over 48 months, which is decent but not an amazing deal. When I called, I protested that I have a great credit score, but the loan officer called it a “false high” and said that I had never had a loan before, only low-balance credit card debt, so she couldn’t offer me the lowest rate.
Next time I find a scorching deal on a used car, I might have to take off of work. In my book, taking a half-day is worth saving a few thousand on my dream car. Plus it helps that my boss is a ‘car guy,’ although he (and my father!) would rather see me get an early-2000s Porsche Boxster.
Seems a bit disingenuous on the part of the credit union to call it a “false high.” It’s like saying scored well on the SAT but not letting them into a good school because the SAT isn’t college. Hmmm… oh well, I guess that’s what happens when credit tightens.
I’m not sure what the costs involved would be, but like with mortgages it might be worthwhile to refinance at some point in the future. Your history of paying the loan up to then might count for something to.
Doesn’t it suck being penalized for responsible money habits? Bleh.