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Smart Shopper Questions About Financing New Vehicles
2253 messages, Last post on Nov 18, 2009 at 12:07 PM
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Bear with me, please. Today was a blast negotiating a '07 Sonata $500 below invoice. I used edmunds tmv and it was easier than I thought. My question before we go into to sign is (ok, here is the embarrassing part-isn't just easier to pay cash (between trade-in, saving, and $2500 rebate, we can swing it) than to deal with the people in finance? Pros/cons, please? Also, I cannot find ANYWHERE that the rebate is contingent of financing. Is it? Please help us with this. We thought we did our homework until I began reading this site and now I am just overwhelmed. Thanks.
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Replying to: aek3 (Aug 28, 2007 3:14 pm) That depends. You need to consider "opportunity costs," i.e. would there be something else that you might want to do with that money in the meantime that would no longer be available to you if you pay cash? tidester, host SUVs and Smart Shopper |
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I purchased a transferable certified used honda pilot on finance from a registered honda dealer on 10/13/2007. I added [LIST=1] [*]Extended warranty. [*] GAP [*] Lojack [*] Replacement insurance [/LIST] based on the misleading information given to me. Okay I got deceived- first time buyer.  [B]Problem 1[/B] Now I want to opt out of the contract ie have a new contract signed without the above four. I went to the dealer on 10/15/2007 and made my case. Looking at the individual documents, I can opt out within 30 days of receiving these 4 contract. The finance contract has no option for me to cancel/ revoke. The problem is if I opt out from the four, (ie after receiving the documents in the mail); I only get a check for the amount I paid for excluding any finance charges from the bank. That was the main reason why I wanted to remove these four. To reduce the car loan thus reducing my finance charges and monthly payments. I tell the honda dealer why I want it removed but I'm been told I can't get a new contract removing the above four. I definitely wouldn't recommend this dealer to anyone but is there away I could void the present contract. I don't like the hassle of going to court, first it's lenghty and may not be economical. [B]Problem 2[/B] At the honda dealer on 10/15/2007 while fight for a solution for the problem above, the dealer's finance manager corrected my assumption that my loan wasn't calculated using the laws of compounding interest but based on the laws of simple interest. It was clearly written at the top of the bank/ loan contract. Using Microsoft Excel entered the my monthly payments, bank interest rate, loan amount and time ( number of years to pay off my loan). Also I quickly in his presence tried in vain to inform him that the total finance charge I would pay isn't what is printed on the document. If I use the compound interest formula, the total finance charge I would pay is what is printed on the document. . Either he was pretending or he truly was ignorant of the formula. I plan on getting home and using a financial software to verify my assumption. Buyers are deceived into thinking their rates are based on simple interest but truly it's based on compound interest. Definitely on all grounds based on the simple interest this contract is invalid. What should I do now. I know What should I do [LIST=1] [*]Do nothing but reget doing business with this dealer? [*]Seek a legal help and fight them in court whatever it takes. [/LIST] |
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Replying to: npumcrisz (Oct 15, 2007 8:46 pm) Buyers are deceived into thinking their rates are based on simple interest but truly it's based on compound interest You lost me here. A simple interest loan is just that. I doubt very highly that a franchised dealer is using a simple interest contract but conducting business otherwise. I may be missing your point though.
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Replying to: npumcrisz (Oct 15, 2007 8:46 pm) 1) You probably won't get a check back for those four items. In almost every case, extras that are added into the finance contract, then canceled, are paid to the bank to reduce the outstanding loan amount. 2) Your payment won't change, but with the lower loan balance, your interest payments will be less, and your loan will be paid off sooner, saving you the finance charges. If your dealer told you differently, then I think he is misinformed. The refund of those four items will likely occur just as you wanted it to. regards, kyfdx visiting host
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Replying to: kyfdx (Oct 16, 2007 7:43 am)
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Replying to: joel0622 (Oct 16, 2007 6:52 am) Of course some of us would sit down and calculate for verification purposes, just as I did later on. Deceiving the customer is considered in the State of New Jersey as Misrepresentation and may possibly be grounds to void a contract. |
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Replying to: kyfdx (Oct 16, 2007 7:43 am) I tried in vain to remove the four extra services from the loan amount. This is were the case now stands. "I am not convinced the computer program was configured to compute in compound interest......", his exact words. Since I was writing down the names of everyone including him, he isn't prepared to go to court as the loan contract can't be void for some reason I have to call the NJS department for consumer affairs to clarify. NB I'm not trying to back out of the contract nor am I trying to return the vehicle because of either a technical error or willful misrepresentation on their part. |
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Replying to: wlbrown9 (Oct 16, 2007 1:30 pm)   I was planning to paying it off after 4 install from the bank. My reasoning was void the contract the first time these four items are presented to me withen 30 days of receiving the respective documents from the four agencies. Thus they either return the check to me or towards the loan amount. Now I have to change my plans, thanks again for the information. |
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Hi, I'm looking to purchase a new car soon and I had a question about financing the car. If I'm the only one that is going to drive the car and the car was going to be financed under my wife (who doesn't have a drivers license), will the dealer allow the car to be financed by my wife even though she doesn't have a drivers license? Thanks for your answers. |
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