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New Contributor
Elcid89
Posts: 567
Registered: ‎10-04-2012
0

Re: Paid off loan now dealership wants money

Oh, and if you bought GAP insurance at the time of sale and REALLY want to make F&I guy ill, call the dealership and request a refund for the unused portion of the policy.

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way2evil
Posts: 59
Registered: ‎02-03-2011
0

Re: Paid off loan now dealership wants money


Elcid89 wrote:

It sounds like Chase may have pulled back F&I's buydown and now the dealer is trying to scam you into making it up for them. I would demand an itemized accounting of what they say you owe them, and why. Until then, they are blowing smoke up your rear IMO.

 

Any pullback on a buydown is between the dealership and Chase. It doesn't involve you, and can't involve you. Chase told them to go screw themselves and now they're trying to flim-flam you into making up their loss.

 

I'd even go so far as to say that I suspect the F&I guy is doing this on his own. Call or go buy and ask to speak to the principal, and explain what is happening to him. Also contact the manufacturer if this is a franchise dealership. This will go away very quickly, and if F&I is doing this on his own. he'll be on the street.


Please do not speak unless you know what you are saying.

 

What happened here has nothing to do with a buydown. A dealership has the option to add points to your loan through Chase (normally 2 points). Chase will give the dealer a rate of say 5% and the dealer can then contract at 7% and Chase will pay 70% of that added interest to the dealer. If the customer pays the loan off before a certain amount of time, the dealer will be charged back that money.

 

Also, you cannot cancel GAP insurance. If you do have some sort of GAP policy that you are allowed to cancel, and you do choose to cancel it, may god help you.

 

 

 

 

 

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Senior Contributor
StartingOver10
Posts: 3,926
Registered: ‎03-06-2010
0

Re: Paid off loan now dealership wants money


way2evil wrote:

Elcid89 wrote:

It sounds like Chase may have pulled back F&I's buydown and now the dealer is trying to scam you into making it up for them. I would demand an itemized accounting of what they say you owe them, and why. Until then, they are blowing smoke up your rear IMO.

 

Any pullback on a buydown is between the dealership and Chase. It doesn't involve you, and can't involve you. Chase told them to go screw themselves and now they're trying to flim-flam you into making up their loss.

 

I'd even go so far as to say that I suspect the F&I guy is doing this on his own. Call or go buy and ask to speak to the principal, and explain what is happening to him. Also contact the manufacturer if this is a franchise dealership. This will go away very quickly, and if F&I is doing this on his own. he'll be on the street.


Please do not speak unless you know what you are saying.

 

What happened here has nothing to do with a buydown. A dealership has the option to add points to your loan through Chase (normally 2 points). Chase will give the dealer a rate of say 5% and the dealer can then contract at 7% and Chase will pay 70% of that added interest to the dealer. If the customer pays the loan off before a certain amount of time, the dealer will be charged back that money.

 

Also, you cannot cancel GAP insurance. If you do have some sort of GAP policy that you are allowed to cancel, and you do choose to cancel it, may god help you.

 

 

 

 

 


I'm just curious, why do you say the last sentence in your post?

The OP just paid off his vehicle so he has no loan on it, why would the GAP policy help him at this point?

New Contributor
way2evil
Posts: 59
Registered: ‎02-03-2011
0

Re: Paid off loan now dealership wants money

I'm sure you know what GAP is for and what it does. For many people, GAP could be the difference between getting out of a loan clean versus owing thousands of dollars for a vehicle that no longer exists. As long as you were charged a reasonable price for the product (NY only allows a markup of $10 on GAP), then there is no reason to cancel the policy. The cost of GAP is anywhere from $150-250.

Community Leader
Senior Contributor
StartingOver10
Posts: 3,926
Registered: ‎03-06-2010
0

Re: Paid off loan now dealership wants money


way2evil wrote:

I'm sure you know what GAP is for and what it does. For many people, GAP could be the difference between getting out of a loan clean versus owing thousands of dollars for a vehicle that no longer exists. As long as you were charged a reasonable price for the product (NY only allows a markup of $10 on GAP), then there is no reason to cancel the policy. The cost of GAP is anywhere from $150-250.


Thank you for answering. I never purchased GAP because here in Fl it is extremely expensive - usually the dealership wants to tack on a huge fee for GAP $1000-$2000, so for me it wasn't ever worth the expense. We clearly don't have the price restrictions for the GAP policy you have in NY. (I did have a time where I could have used it though: car totaled and I had to pay the difference of about $6K between what the insurance paid out and the remaining balance of the loan. I paid it and learned to put down larger down payments and finance over shorter periods of time...lol)  

OP, sorry for the thread jack

Established Contributor
CruzImperial
Posts: 867
Registered: ‎07-04-2012
0

Re: Paid off loan now dealership wants money

This is a very interesting topic. Thank you all for your opinions and imput, they'll surely help someone out there.

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