Classic bait and switch. Now they hope that you will forget about their jacking up the rate and just write the checks.

I see that banks are hovering around 2.6% hereabouts and my credit union is offering 1.5%. Over a three year loan this is over a $1000 difference in interest paid over a dealer's 5% loan. The monthly payment might only be 6 or 7 dollars higher, but those few dollars add up!

Take your business to the people who will treat you fairly.

 

You cannot leave a dealership with financing pending. A typical unscrupulous ploy some dealerships will do is sell you the car with the final terms of the loan pending credit approval. And then wait a few days or week and inform you did not qualify for the rate quoted at the time of sale. They will then require you to come in and sign for a higher rate. Depending on how the contract was worded I suppose you could just return the car and ask for the cash value of the trade in, if there was one.

 

I got one of these also weeks after I completed my purchase. It essentially means that you filled out an application with Honda finance (possibly via the dealer) and didn't qualify for the absolute lowest rate available. If you were still approved for a loan from Honda (or from any other lender), you have nothing to worry about. In my case I found lower rates through my CU and ultimately through the dealer via WFDS. It's not a bait and switch thing and actually might be an adverse action notice (required to be sent if a lender denies you a loan... you can get a free credit report to check for any incorrect information if this is the case, outside of your normal annual free reports).

 

It doesn’t take a week or so for dealership to determine what finance terms to offer to a customer. A customer’s credit score can be gotten electronically immediately. There is no reason to leave finance terms unresolved at the time of purchase.

 

There is if the dealer wants to make the customer think that they are going to have a lower monthly payment than they will actually get. They'll send the customer away with the car and heartfelt assurances that they will do their best to get them the teaser rate and then a week or so later cry crocodile tears when the buyer finds out the bad news and that they already committed themselves to whatever the dealer said.

You're right that the dealer can get quick credit information. Salesmen run your credit score as soon as they get enough information to do so. Ever wonder why they want to see your driver's license so soon? It isn't to determine if you can legally drive!

With credit information they can tell if the customer is worth their time or if the customer might be someone they can upsell to a pricier car.