Pre-approved then pressured: Rookie buyer suspects car dealership faked ‘cuddle’ program approval process
Buying Your First Car: Understanding the “CUDL System” and What It Means for Financing
Buying your first car can be nerve-wracking, especially when it comes to understanding how car financing actually works. One Redditor recently shared a confusing experience about a car purchase that left them wondering if they’d been misled by a dealership claiming to use a “cuddle system.”
The Reddit post began with the buyer expressing their concerns:
“I just want to know if I have completely screwed myself as a first time buyer. I had a pre-approval from my bank. I went to a dealership to see if they had anything that would fit my loan specifications.”
At first, everything seemed normal. However, things took a strange turn when the dealership claimed they could “access” her bank’s pre-approval through what she misheard as their “cuddle system.” According to the buyer:
“They said they did and then asked for my information and the lender (my bank) to access my pre-approval through their ‘cuddle’ system. Said it’s approved pending finalization with the bank, gave me keys and had me sign paperwork?”
Despite signing the paperwork and receiving the keys, the buyer hadn’t received confirmation from her bank about the official car loan approval. She also noticed she hadn’t seen a credit pull from her own bank but rather from several other institutions. She explained:
“Only from other institutions since they ran pre-approvals with other institutions to compare, which I didn’t realize they were doing but ay that’s on me I guess.”
The good news was that the loan term, rate, and payments matched what she expected. Still, she was understandably concerned and asked:
“Is this a normal process or have I been f-ed over by a greedy dealership?”
### The “Cuddle System” Isn’t Real — But CUDL Is
The system the dealership mentioned wasn’t called “cuddle” at all. What they were likely referring to was **CUDL**, which stands for **Credit Union Direct Lending**. This is a legitimate financing network used by dealerships and credit unions across the U.S.
CUDL allows participating dealers to submit loan applications directly to multiple credit unions on behalf of car buyers. This streamlines the financing process, so customers don’t have to separately visit or negotiate with their credit union.
In this Redditor’s case, the dealership may have submitted her information through the CUDL network. However, that doesn’t necessarily mean her original bank or credit union was the one that approved the loan. Dealers often apply to multiple lenders to find the best match for their customer.
It’s important to note that the Redditor observed several other institutions pulling her credit, which is consistent with a dealership “shopping” around different lenders. While this practice is legal, dealerships should clearly disclose it to the buyer beforehand.
### What One Reddit Commenter Had to Say
A commenter familiar with the CUDL system offered some reassuring insights:
“It’s actually to your benefit, and the dealers, that your credit union is part of their CUDL program. That streamlines the process for everyone. You got the terms you expected and they don’t have to wait for you to come back with a check from the credit union.”
The commenter also explained the paperwork process:
“The dealership, not the lender, issues the contract at the time of signing. If you didn’t get copies of what you signed then call the dealer and ask for it. The credit union won’t have you in their system until after they fund the dealer which usually takes a few days.”
### Key Takeaways for First-Time Buyers
– **CUDL is a real, legitimate financing network** used by many dealerships to connect buyers with credit unions efficiently.
– Dealers often submit loan applications to multiple lenders to find the best terms — but they should inform you if they do this.
– The credit union finalizes the loan after funding the dealer, which can take a few days.
– Always ask for and keep copies of all signed documents and contracts.
– If you have questions or concerns, don’t hesitate to contact your dealership or your credit union directly for clarification.
Buying a car can be complicated, especially with financing involved. Understanding how lender networks like CUDL work can help you feel more confident and avoid surprises during the process. If you suspect something isn’t right, ask questions and make sure you have all the paperwork in hand.
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Feel free to share your own experiences or questions about car financing in the comments below!
https://wegotthiscovered.com/news/auto-social/pre-approved-then-pressured-rookie-buyer-suspects-car-dealership-faked-cuddle-program-approval-process/
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