After about 1-2 months of searching with a broker I found through this forum, I finally found a great deal on a Mercedes-Benz EQS 450+ with a spec I loved at a dealership in another state. I submitted a credit application, and the dealership told me it came back with flying colors—no issues at all. They assured me the car was mine, and all I had to do was fly in to finalize everything.
Since I didn’t have an active insurance policy at the time (because I didn’t own a car), I had my dad cosign to speed up the process. For reference, my credit score is between 730-760 depending on the day.
I flew to the dealership, and so did my dad, to complete the process. I drove the car home, fully insured it, and even got the windows tinted at one of the best shops in my area. A week later, I received a call from the dealership telling me that my credit application was denied due to my dad’s credit score. Now, they’re saying they need the car back.
The dealership has offered to pay for a transporter to retrieve the car, but I’m left feeling completely inconvenienced (to put it lightly). Here’s why:
I’ve already prepaid for six months of insurance.
I paid for premium window tinting.
I spent money and time to fly to the dealership and transport the car back to my home state.
My credit score is excellent, with no issues or infractions for my age, so I don’t understand why this happened.
I’ve offered to pay lease in full upfront, which they’ve for some reason denied?
The dealership told me everything was good to go when I picked up the car, and now I’m left without a vehicle, despite doing everything on my end.
What should my response be? I feel like this is highly unprofessional and unfair. Any advice on how to proceed would be greatly appreciated!
Unfortunately I am the only responsible family member with a strong credit score and stable income. They said my credit history is too young for the car given it is a $120k MSRP car, despite leasing a new M4 3 years prior with zero issue.
Others can chime in, but to be honest if Mercedes financial won’t approve you, than I don’t know what options you have other than returning it, as you legally don’t own the car.
As to why the dealer let you sign and leave with the car without an approval, I don’t know. I do feel like you should ask for all out of pocket money spent (airfare, tints, etc ). Most all insurance policies give prorated refund when cancelling.
What was the credit score? MBFS should have sent you/your dad a letter stating the credit score that was used to either approve or deny you credit.
As others have stated, you don’t own the car. MBFS does, so you don’t really have any other recourse. I do feel for you but your only option is to return the car.
Have you asked the dealer/MBFS whether you can get approved for a cheaper MSRP car (in case you were interested in another MB)?
Never heard of a credit approval being rejected a week later, is that a thing? Lease funding yes, but credit approval?
Do you have an account open with MBFS? If yes then the lease funded and there’s something else fishy the dealer is attempting.
If not, can you see any reason in the lease docs where their negligence might have caused the lease to not fund? Sales price below RV, incorrect rebates, etc? This will help your case on recouping expenses.
If none of the above apply, unfortunately you’ll have to take it as a lesson learned and you’re likely not entitled to anything (other than jail time/fines if you try to hide the car from them). When you drove the car off the lot it was a spot delivery, and your contract will have a clause about what happens if financing is rejected.
Also this is a misconception that seems to be going around. you paying the full 10-15k lease will not make them more comfortable giving a person perceived as unreliable free reign over a 100k car for 2 years
This would be very surprising given that it’s in every lease contract I’ve seen or heard about. Having never signed an MB lease tho, I can’t point you to the specific clause
Why did you need your dad to cosign to get an insurance policy? This can be done online in a few minutes. AFAIK you need a cosigner if your credit score/history is insufficient, but you said the dealer told you that yours alone went through without issue?
I didn’t want to get an insurance policy before I had the car. Because this was an amazing deal I wanted to be able to sign ASAP and I didn’t want to get a policy in the event I didn’t get the car, so I had my dad co-sign so I could get the policy once I had the vehicle. Also, I take back what I said regarding assignment - I see they have 30 days to assign otherwise i need to return the vehicle within 48 hours.
Is there another vehicle on their lot that you could work out something with them, like an EQE? Maybe you can agree to another deal with them since they are sending a transporter anyway, and they can swap cars with you–that way at least you get something out of it–free delivery.
I guess they had you fly in the first time but just trying to think of a way you can make this more palatable.
If I’m reading correctly, it sounds like dealer told OP they cant get funded alone. @Nes7s - can you confirm the dealer tried to fund with you alone, and Mercedes denied?
The dealer initially instructed me to apply for financing on my own. However, when I informed them that I didn’t have an active insurance policy, they suggested that I have my father cosign to expedite the process since he has an active insurance policy in Florida. I have an excellent credit score and previously leased a high-value vehicle, a BMW M4, so I assumed I would be approved on my own. However, the dealer has now informed me that my credit is considered “too new,” apparently due to my age (29 years old), which seems inconsistent with my credit history and financial reliability.
I’ve since suggested the option of doing a one-pay lease, which is surprising because the dealership didn’t bring it up initially—I had to be the one to propose it. They agreed that it was a great idea and said they would check if it could be done. However, I also made it clear that if we proceed with the one-pay lease, I expect the lease price to be reduced further, considering that I would now be putting $24,000 upfront.
