Have you ever heard of this when buying a used car

[Hikergirl]

Why is there this need for days for insurance binders or picking up checks from the bank? Everything is so digital, that I'm really not understanding why this cannot happen pretty much instantaneously. Even if we had chosen financing from our credit union, it would have been able to be done right then as we had gone through the approval process prior to looking at cars.

Dh and I paid cash for our cars and since the dealerships did not take personal checks we needed cashier's checks. We had to sit down with them to figure out exactly what was owed before we could get the checks from our bank. Dh had to wait until Monday since he went shopping on Sat. I got mine the next day since it was during the week.
We've always just taken care of the insurance right there at the dealership but stuff happens. I'm sure there are various reasons why it takes a day or more for people to get their stuff together.

 

[Pea-n-Me]

For the last 2 vehicles I bought, I called our bank from the dealership, gave them the VIN and other info and they approved the loan over the phone. Then they sent the check electronically to the dealership. There was zero checking of insurance documents and we updated our insurance after we got home. Once negotiations were done, the whole process took maybe an hour or two. We do bank with a Credit Union that doesn't have local branches so there'd be no way to physically go there to handle anything. This is the first time I've heard the term "Insurance Binder" and still don't really even know what it is.

https://www.thebalance.com/insurance-binder-2645743

 

[Pea-n-Me]

This is exactly how it happened when we financed through our bank. I took the car even though it wasn't truly "paid for" yet. The bank called me a couple days later that they had the check and the manager even offered to take it to the dealership for me.

We can't do that here.

 

[SharonZ]

My insurance agent has always dealt directly with the dealership, and I've never had any problems.

 

[Pea-n-Me]

Ok, question answered, thanks for sharing your experiences.

 

[bigbabyblues]

I've never put a deposit on a car, new or used, and we always do it in one day. We arrange our financing with the bank and get something from them showing the loan has been approved or something like that, then go look for the car. When DH bought his car a few months ago, he knew he wanted a 2015 or 2016 Camry, the maximum # of miles he was willing to have on it and how much he was willing to pay and that we would be using our own financing. He had been in contact with a dealer an hour away for a few weeks and the salesman called him when he had one on the lot that fit--actually, he had 2 at the same time. DH went over and looked at them, drove them, etc. and picked the one he wanted. They made the deal, DH gave him the paperwork from the bank, the salesman or the finance person or whatever called the bank and they took care of the money part. I don't know if they do it electronically or send a check or what, but we didn't have to do anything with the dealership for that part.

DH had already called our insurance agent with the VIN# of the car and whatever else they needed to add the car to our policy while he was waiting for me and DS to meet him there to bring his truck home. He may have had to go to the insurance office the next day, I don't know. But there was no extra time needed.

When we bought my van 2 years ago, it was pretty much the same thing. We sold the old one on a Thursday, called the dealership 3 hours away that had the (used) one that we wanted Thursday evening and went to pick it up on Friday. They held it for us, but he called at 7:30 on Thursday night, they closed at 8:00 and went up the next morning. We already had the financing done for that one too, and called the insurance company when we got home.

 

[DisneyHardin]

We can't do that here.

What do you mean? Like it's illegal?