Dealer Changed Financing from Mazda Direct to Capital One

[DANGSDUNKS]

I purchased a CX-5 on September 2nd, I thought the financing was going to be through Mazda Financial and i never approved the loan to go through Capital One. I got the welcome letter from Capital One today, is there anything i can do?

I had a bad feeling with the dealership the whole time, but they were a significantly less than other dealerships. I purchased a Mini in July and it was the best experience i had was hoping this was going to the the same.

 

[paris1]

I'm no financial expert, but Mazda subcontracts its financing through other institutions. I got my .9% 36 month loan through Mazda last year and low and behold it showed up within days on my Chase Bank account page. Fine with me as it made it easy to set up autopay online. As long as the rate and term is what you agreed to, what's the dif?

 

[CX-SV]

Yes, here in CA the Finance Manager can use a variety of lenders/banks/CU's. What you approved was loan amount, term and interest rate.

What can you do? Refi it through the institution of your choice at no charge before the first monthly payment is even due.

 

[robertmazda]

Assuming that all of the terms are what you agreed to, I wouldn't worry. Cap One is certainly a major lender.

 

[nXt]

That's normal. I'm in California and mine went to Wells Fargo Dealer Services bank (bought car in April, same terms the dealer told me).
When I bought my Mazda3 back in 2004, I did Mazda financing also and it went to Bank of America.

 

[maxwax]

I purchased a CX-5 on September 2nd, I thought the financing was going to be through Mazda Financial and i never approved the loan to go through Capital One. I got the welcome letter from Capital One today, is there anything i can do?

I had a bad feeling with the dealership the whole time, but they were a significantly less than other dealerships. I purchased a Mini in July and it was the best experience i had was hoping this was going to the the same.

I financed my Honda in 2007 with Capital One and had no problems. I actually got pre-approved at 2.9% for the CX-5, but Mazda, using Chase, gave me 1.9% so I used them instead.

If you want someone besides a big bank, you've got to arrange a credit union account and loan ahead of time and use that. I'd stick with Capital One if I were you and enjoy the low rate.

 

[TreyP]

I'm no financial expert, but Mazda subcontracts its financing through other institutions. I got my .9% 36 month loan through Mazda last year and low and behold it showed up within days on my Chase Bank account page. Fine with me as it made it easy to set up autopay online. As long as the rate and term is what you agreed to, what's the dif?

My story exactly, except it was this year. Its great to have the Mazda loan show up on my Chase online banking page. And I agree, as long as it is the terms you agreed to, who cares where the payment goes? (shrug)

 

[rjdee]

And I agree, as long as it is the terms you agreed to, who cares where the payment goes? (shrug)

I completely disagree with the last part of that statement. You should care where your money is going and cheaper is not always better. Use companies whose values align closest to your own. There are businesses and companies that I won't support (Walmart). I might even pay extra if the business is local, gives me a physical place to walk in to resolve any issues or offers better service. Ex: I refuse to buy from my local Mazda dealer (Seacoast Mazda) because the sales manager has given me the runaround too many times.

I do agree that the terms can't change. Many moons ago, I had a dealer (Portsmouth Nissan, should be new management by now) who quoted me loan and payment terms, took my trade-in, I took the new-used car home. 2 days later I was called back to "FINALIZE" the paperwork and I caught that they changed the terms. Payment was the same but the dealer lengthened the term and hiked the interest rate. I was livid! Told them that they changed the terms which they blamed on the finance company. I told them they can keep the car and I need my trade back. The Finance manager offered the original terms but I was disgusted and refused to give them the business. The Finance guy was confused why I wouldn't agree to the same deal that I was ok with a couple days before. It blew me away. Ohh and they had already transported my trade-in offsite. I had to threaten to call the cops before they started to move. I also made sure that my situation was known to the other customers in place and it took 4 hours for them to retreive my original car. I was 23 and this was supposed to be my newest car to date. I ended up finding a better version with half the miles for less money. So a bad situation was good overall and has trained me to examine everything I put my name to.

 

[TreyP]

Oh geez..

Perhaps I should have been long winded and said "As long as you have no previous issues or knowledge of wrongdoing on the part of the person, company, or corporation your payment is going to, who cares where the payment goes?"

The OP expressed no such concern, unless I missed it.

 

[CX-SV]

Oh geez, yes it would be nice to stay on topic as it relates to financing an automobile purchase...

Which is why I said earlier, refi it at your preferred lending institution before the first payment is even due.

 

[TreyP]

Actually, it was all on topic relating to who the OP did or didn't want his money financed through.

 

[CX-SV]

Yes, unless we drift into the Walmart, mostly made in China discussion, therefore it doesn't align with our values, etc.

Interest rate, terms, lending institution are key factors for sure.

 

[geosho]

Mazda does not actually do direct financing according to my dealer, but subcontracts it out. I purchased my 2014 CX-5 last week and got the 0.9% deal for 5 years. The lender was Chase.

 

[TreyP]

Yes, unless we drift into the Walmart, mostly made in China discussion, therefore it doesn't align with our values, etc.

Interest rate, terms, lending institution are key factors for sure.

Ok, gotcha.

 

[DANGSDUNKS]

We were told it would be under Mazda Direct. We weren't happy with the rate but sounded like we had no choice, didn't really want to go look around for other lenders. We were approved at 2.9%, but i just applied online through Mazda and got 0.9%.

 

[TreyP]

We were told it would be under Mazda Direct. We weren't happy with the rate but sounded like we had no choice, didn't really want to go look around for other lenders. We were approved at 2.9%, but i just applied online through Mazda and got 0.9%.

Ah...now it makes sense why you were upset. I don't blame you. Congrats on getting the .9% finally though.

 

[deepfriedsushi]

Just curious...which dealership did you go to? Sounds like Fremont Mazda....lowest prices around....but very bad and deceptive service.

I went to Capitol mazda and they went through Chase, which worked out perfectly for me because I bank with Chase. However, I did not have any requirements on who I was borrowing money from, as long as the rates were what I agreed to. Before I signed all the paper work, i was informed that the loan would be going through Chase.

 

[paris1]

We were told it would be under Mazda Direct. We weren't happy with the rate but sounded like we had no choice, didn't really want to go look around for other lenders. We were approved at 2.9%, but i just applied online through Mazda and got 0.9%.

As explained above by various folks, there is no such thing as "Mazda Direct". Mazda subs their lending out to other institutions. You should have had a finance plan in place before you bought the car rather than whining now that you "didn't really want to go look around for other lenders". Sounds like you were your own worst enemy in this situation.

 

[DANGSDUNKS]

As explained above by various folks, there is no such thing as "Mazda Direct". Mazda subs their lending out to other institutions. You should have had a finance plan in place before you bought the car rather than whining now that you "didn't really want to go look around for other lenders". Sounds like you were your own worst enemy in this situation.

From what i know Mazda Financial subs out only to Chase and they had the 0.9% Promotion which we were eligible for but the dealer said we did not qualify. To make more money they decided to use Capital One. I didn't want to look at other lenders because i thought i was going through Mazda Financial/Chase.

 

[DANGSDUNKS]

Just curious...which dealership did you go to? Sounds like Fremont Mazda....lowest prices around....but very bad and deceptive service.

I went to Capitol mazda and they went through Chase, which worked out perfectly for me because I bank with Chase. However, I did not have any requirements on who I was borrowing money from, as long as the rates were what I agreed to. Before I signed all the paper work, i was informed that the loan would be going through Chase.

Yes, Fremont Mazda was terrible.