Bank PO = Discount from Dealer

[dale323]

This seems to be the right topic.

I got an approved bank PO and got a 20K discount + freebies from a dealer.
However, bank called me that the dealer wanted to have the bank issue a credit advise instead.

Has anyone experienced this credit advise? How will this work vs a bank PO?

Dealer was claiming this is a practice they do to mitigate the withholding tax???
Bank was saying this will not work with them.

Now, I'm in a confused and in waiting mode.

Guys, any update regarding this? Currently on the same boat. I was initially given the chance to choose between using the discount on the D/P or the SRP, we chose in DP. After a while, tumawag si bank at ayaw daw ni dealer maglabas ng credit advise. Sabi naman ni dealer, ayaw daw ni bank na sa DP ibawas. Ang weird lang since halos lahat ng kakilala ko ay sa Downpayment nila ginamit ang discount.

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[pobre24]

Guys, any update regarding this? Currently on the same boat. I was initially given the chance to choose between using the discount on the D/P or the SRP, we chose in DP. After a while, tumawag si bank at ayaw daw ni dealer maglabas ng credit advise. Sabi naman ni dealer, ayaw daw ni bank na sa DP ibawas. Ang weird lang since halos lahat ng kakilala ko ay sa Downpayment nila ginamit ang discount.

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A bank will not allow application of discount on DP. Especially if DP is 20%. That's the minimum DP for a car loan ( as far as I know, BSP regulation). Standard practice is discount on SRP then DP against the discounted price. DP will be a bit lower.