Dealer asking for paper check… why?

I went to the dealer with my pre-approved loan from USAA. They said they accept USAA, but since USAA isn’t a ‘partner’ bank, they want a paper check. The dealer said I have to send USAA the paperwork, like the Purchase Order. When I finalized the application, I chose to have the paper check sent to me since the dealer wants me to bring it in. But the app only says all documents are due by a certain date, without saying which documents. Should I just upload the purchase order to USAA? What else do I need to send them? USAA is closed right now, and I don’t know if I have time to call tomorrow. I don’t want any delays in USAA sending me the check. The dealer said they need the check before delivery. And no, it’s not a shady dealer—it’s a big, well-known name. Thanks!

That dealer sounds lazy. They’re probably trying to push you into using their financing. Find a better dealer if you can.

Skylar said:
That dealer sounds lazy. They’re probably trying to push you into using their financing. Find a better dealer if you can.

Too late. I already signed the paperwork with the salesperson. It all fell apart when I got to the finance guy. What a mess!

The dealer can fill out the funding request form. Instead of entering their bank info, they can ask for a physical check. They’d fax that with the purchase order and title application listing USAA as the lienholder. Then USAA will send them the check.

@Lior
This dealer doesn’t do it that way. They make the buyer handle it, like with Navy Federal, where you take the purchase order to the credit union, and they cut you a check to bring back.

Chen said:
@Lior
This dealer doesn’t do it that way. They make the buyer handle it, like with Navy Federal, where you take the purchase order to the credit union, and they cut you a check to bring back.

Sounds like too much hassle. I’d just go somewhere else.

Chen said:
@Lior
This dealer doesn’t do it that way. They make the buyer handle it, like with Navy Federal, where you take the purchase order to the credit union, and they cut you a check to bring back.

USAA will tell you the same thing since your loan is already signed. You could reapply and choose a bank check this time. It usually gets issued within 24 hours once you sign everything online.

@Lior
Why don’t they just take an ACH transfer?

Dealers do this to push you into using their banks so they can make more money. Good luck dealing with them!

Yeah, just upload the signed purchase order. USAA will use it to issue a check payable to the dealer. Then USAA and the dealer will sort out the title transfer and registration.

Update: I talked to a USAA rep early this morning. They said to sign all the documents on the app and choose a bank check instead of a wire transfer. Once the app says all documents are submitted, they’ll FedEx the check (you pay for shipping), which takes 3–5 business days. The dealer decides whether you can take the car before the check arrives or after it clears.

It’s frustrating they won’t let me take the car even though I signed a binding agreement. If I didn’t pay, it would be theft or fraud, and I’d be in big trouble anyway.

@Chen
Did they say if they’d let you know when the check is sent?

Nolan said:
@Chen
Did they say if they’d let you know when the check is sent?

Nope. I’ll just call every day to check the status.

Chen said:

Nolan said:
@Chen
Did they say if they’d let you know when the check is sent?

Nope. I’ll just call every day to check the status.

Makes sense. Thanks for the info!

Same situation here. I filled everything out on Saturday. USAA hasn’t updated anything online or in the app. It just says to check the status later. I plan to call tomorrow, but if anyone has tips, I’d appreciate them!

We did this through Navy Federal. Went to the branch, picked up the check, and brought it to the dealer. I’d go with whichever lender gives you the best rate and terms.

Just walk away. It’s not worth it.

If they’re making this much trouble, just walk. It’s their loss if they’re willing to lose a sale over this nonsense.

USAA’s loan rates have never been competitive in my experience. Their insurance is great, but I don’t get why people use them for loans.

Ira said:
USAA’s loan rates have never been competitive in my experience. Their insurance is great, but I don’t get why people use them for loans.

They’ve had the lowest auto loan rates since the interest rate hikes after COVID.