Another Day another Car Issue

[Anonymous]

WE GOT A NEW CAR YAY!!!!...... not so much

We bought a car a few days ago everything was fine until yesterday I called them to see what the status of my tag transfer was ( some issue at time of signing). Was told they were working on it and was informed that the financing fell through.

Now I know this is a common trick/ploy by the dealerships but were I am confused is that the deal is better... or appears to be better over the phone.

The original deal was about 46k @ 7.2 percent

The new deal is 42k @ 7.2 percent. ( Monthly pament about 55$ cheaper a month)

He is saying he saved me money by taking out the packages we bought ( which were hidden in the paperwork and not presented properly in the first place). That accounts for about 2,200$, and said that they discounted the price of the car to 38,900 before taxes and fees. Now they (the dealership) are losing $266 on the deal.

What am I missing here?

Am I being swindled or am I not trusting?

[Anonymous]

I can't imagine how you think they are swindling you (now) by offering a lower price....

They may have been swindling you before, if they pushed packages (presumably, extended warranties, GAP, service plans, etc) into the deal without telling you about them...

If they hand you a contract to sign for the lower amount, sign it.

And ask for the original one back, just to be sure.  Or at least a copy of it with "VOID" written on it by them.

Sometimes they have to lower the price a liittle to get anyone to buy the deal - especially with used vehicles.  They may have had the lender say sure, we'll fund that deal, but only if the car is less than $39k...  and the dealer decided to do it to get the thing closed.  This happened with the car I just bought over the weekend - a one-year-old Mazda - where the dealer was trying to beat my prequalified interest rate.  They found one of their lenders to do it, but only if they lowered the selling price of the car by $1500, which they did to get the loan through.  Dealers make a little on each finance contract they initiate, too, so don't feel too bad about the claim yours made that they "lost money" on your car.  

[Anonymous]

I don't know it just seems odd....

I spoke to the bank that approved me and said everything was fine now the dealership says no.

Something doesn't fit right. but I guess Ill see when I go down there later.

[Anonymous]

It's a new car if that would make a difference.

[Cellice]

I would put hard brakes on this deal. I should like you did not negotiate the original deal very well. The bank likely did not approve the original deal because you were over 120% of the value of the car. This means you are entering a very bad situation.

Why is your rate so high?

If you want to PM me the details of the deal I can let you know if this is a good or bad deal.

[Watchmann]

This doesn't pass the 'funny smell' test.  It is hard to believe a vendor is going to forgo $4k in revenue just to make a sale.  Run away.

I never could understand how people sign a contract and don't realize there is extra stuff jammed into the bottom line.  READ the contract and go over EVERY line in the financial terms to know what is in there.  There is no way you should have missed that extra junk that was tossed into the agreed upon price.  I suspect you focused on the $ per month cost of the payment and NOT on the most important number in the transaction......the bottom line price of the car.  Unfortunately you are in good company as most people have defaulted to focussing on the cost per month instead of homing in on the true cost of the car which is why dealers will just inflate the cost of the car and lengthen the loan period so it will fit in the buyer's budget. 

[Anonymous]

Sticker price on car is 42,070. As it sits now total financed is 46946.80 interest is 7.14%. New deal is total financed should be around 42000 sticker of car 38,900. On my way to dealer

[Anonymous]

Watchman was more of we went to a friends dealer and we told them what we wanted. Even the general manager asked us what we wanted and we told him so we just ASS-UMED there wasn't any extras.

[sccredit]

What kind of car?  What bank?

[Anonymous]

Honda with Honda financial. The old bank is anyway don't know the new one