damships
Well-Known Member
Thank you for the support and additional information Cobra.Don’t rely on the vehicle loan being paid off same day; my prior 2016 was not and many who have gone through a RAV BuyBack have reported the same that the actual “paid in full” from RAV is usually delayed.
That does not mean you will be impacted at all as far as financial credit score or delay of completing the vehicle swap. It just means there’s usually a delay between the time the car is surrendered, the paperwork completed at Dealership, when RAV (or your existing lender) processes the payoff and RAV receives the title to the collateral. Make sure that within 5-7 business days that you do call your Lender to confirm the note was paid in full (request a letter from them stating same) and confirm that RAV has received the title.
Yes, you certainly should move forward to line up all of your financing before surrendering the collateral and taking delivery of the replacement. In order to do so, your Salesman who is handling and helping facilitate the transaction needs to create the New Vehicle Invoice. That invoice will show your collateral as if it were a “trade”, any fees (Dealer doc fees, DMV reg/title, misc. State fees (taxes if applicable) will all be broken out on that invoice. The bottom line figure from that invoice is what your Lender (Bank, Credit Union or Ford Credit) will need to run as your new loan amount. Be diligent and also go through the figures on the invoice BEFORE you send it to your lender.
Ford RAV will only let you take the replacement vehicle once you and the Dealership inspect both vehicles (Dealership yours, you the Dealership’s), financing is in place, all monies due are settled at day of swap (ie: applicable if you owe any deltas due to MSRP variances, any penalties, etc) and obviously all the normal new car paperwork and specific RAV paperwork is signed.
Many Dealerships don’t know or understand the RAV process, because some have never processed such a transaction or those that have, it’s a very low number of such transactions that it’s not the “norm” for their sales floor folks. The same is true for RAV, they have a high turnover and some of their folks are not well trained in the process, so there’s confusion or they just don’t know.
On a positive note, sounds like you’re in the home stretch!
UPDATE: I went to the dealership Monday to apply for financing after the Ford RAV Rep finally said I could do the deal. Drove down there and then they told me they actually can’t because they want the surrender packet first (despite them telling me to come down there and the Ford RAV Rep saying I could).
So I got word yesterday (Friday) that we could do it. I go down there a second time. I’m there for two and a half hours and my sales guy and sales manager sit down with me and they tell me they don’t understand the math and even if they went with RAV numbers they can’t “structure the deal in their system correctly”. I explained the math and numbers and they said the system isn’t letting them input them correctly. I got a little ticked off due to them wasting my time twice. I told them I want some form of compensation for this, whether it was covering the GAP Policy or tinting the windows on the new vehicle since they told me to drive down their twice (30 minutes away from me) with nothing being done whatsoever to move the process along.
So I’m a little frustrated. Perhaps Ford should train these managers on buybacks and lemon laws. I know they don’t happen often but they should at least have a training packet or something. I used to work in financing furniture and other assets, and we would have rare circumstances that were weird (ie no tax deals, special terms for military, replacements) and we would always at least have a packet showing step by step instructions of how to write and submit the paperwork. I guess I’m just blown away a company like Ford doesn’t do that.
And on a side note, they actually told me I could take the new vehicle if I wanted. I told them I’d rather wait until I sign off on the paperwork. But they said if I did do the paperwork and all is signed for the financing they wouldn’t mind if I take the new vehicle and leave the old one. It doesn’t sound commonplace with the procedure I’ve been reading, but then again, they don’t know what they are doing lol.
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