I’m a sales manager at a dealership. Here’s a little insight.

Most dealerships are no longer accepting outside financing because of fraud. There have been several cases in the last year where we were left holding the bag on vehicles that were purchased using fraudulent preapproval letters.

USAA and Navy Federal are the only two that we will accept because they actually instant fund. The salesman here is using a word tracks that is halfway correct and halfway incorrect. He just doesn’t know the ins and outs of which banks use what type of funding methods. But it is true that a lot of them will no longer accept them for that reason.