Too good to be true?

[Avrarose1]

Discharged from Chapter 13 last month. Bought a 2014 Toyota Avalon last week & salesman says ok you are approved at  11.9 for 72 months, payment $623  we were happy with this because we know we did just go through a BK. Our monthly income is good & just 2 small credit cards..

When we get to finance, we were offered extended warranty, maintenance, paint protection, tire protection.. We said no because we didn't want to increase payment. Finance guy plays around on his computer & says "I can get you 6.9 from Cap 1" & he discounted all the warranties. Ok we said yes to all & payment is the same.  I'm sure we still paid too much but  that is not my question..

I am scared the dealer is going to call us back & say Cap 1 won't approve you & you need to bring the car back! We did pay off our Camry in Chapter 13 but the interest was reduced.  Cap 1 did send us our title last month & we sold the car.

Dealer pulled scores & My auto score is 725, EQ 690, EXP 725 & Transunion 698

Husband is Experian 666, 681 Transunion..Somehow no score on Equifax. I forgot his auto score.

 I did think our scores were ok but finance guy says you stil have the Bk so scores don't mean too much right now. Income is 9K a month & we were able to put. 8K down.

So it has been 1 week & haven't heard from Cap 1 or dealer!

Any thoughts ??

[Remember0]

You're good. If its bait and switch, they'd have pulled you back by now. Even if they do, remember you can walk away: refuse to sign anything and hand them the keys back. Trust me, they'll back down and give you original terms.

Aldo look over your paperwork. You can most likely go back and cancel the warranty but keep the loan...see how many days you have to cancel. If you can wait till cap one has a record of the loan (can take up to two weeks from purchase; call them to find out), wait but if you only have a few days cancel, cancel imo.

[j_casteel]

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@Remember0 wrote:
You're good. If its bait and switch, they'd have pulled you back by now. Even if they do, remember you can walk away: refuse to sign anything and hand them the keys back. Trust me, they'll back down and give you original terms.

Aldo look over your paperwork. You can most likely go back and cancel the warranty but keep the loan...see how many days you have to cancel. If you can wait till cap one has a record of the loan (can take up to two weeks from purchase; call them to find out), wait but if you only have a few days cancel, cancel imo.

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+1

My wife bought a new Nissan 2 years ago, and they gave us 0.9% financing if we got the extended warranty. We said yes, and then called the warranty company a month or so later to cancel it. They sent us a check for the prorated amount of like $1.8k or so AND we still kept the 0.9% APR.

[StartingOver10]

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@j_casteel wrote:

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@Remember0 wrote:
You're good. If its bait and switch, they'd have pulled you back by now. Even if they do, remember you can walk away: refuse to sign anything and hand them the keys back. Trust me, they'll back down and give you original terms.

Aldo look over your paperwork. You can most likely go back and cancel the warranty but keep the loan...see how many days you have to cancel. If you can wait till cap one has a record of the loan (can take up to two weeks from purchase; call them to find out), wait but if you only have a few days cancel, cancel imo.

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+1

My wife bought a new Nissan 2 years ago, and they gave us 0.9% financing if we got the extended warranty. We said yes, and then called the warranty company a month or so later to cancel it. They sent us a check for the prorated amount of like $1.8k or so AND we still kept the 0.9% APR.

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No matter what the Finance Dept tells you - the lender can not legally require you to sign for an extended warranty and more importantly can not change the interest rate if you do or do not accept the warranty. These extended warranties are huge profit margins for car dealers. They get to keep a hefty commission from the sale of the warranty if you keep it over X days.  I don't know the exact number of days, just know that before that time period they will lose the extra commission.  Maybe one of the others here knows the number of days. 

If you look at the actual contract you signed it will specifically indicate that the warranty is optional (no matter what the F&I guy says).

I am glad you received a refund. Most of the extended warranty's are not worth the extra expense IMO. But the only way to know is to actually read the warranty contract at the time of purchase to see what is actually covered.  

[j_casteel]

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@StartingOver10 wrote:

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@j_casteel wrote:

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@Remember0 wrote:
You're good. If its bait and switch, they'd have pulled you back by now. Even if they do, remember you can walk away: refuse to sign anything and hand them the keys back. Trust me, they'll back down and give you original terms.

Aldo look over your paperwork. You can most likely go back and cancel the warranty but keep the loan...see how many days you have to cancel. If you can wait till cap one has a record of the loan (can take up to two weeks from purchase; call them to find out), wait but if you only have a few days cancel, cancel imo.

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+1

My wife bought a new Nissan 2 years ago, and they gave us 0.9% financing if we got the extended warranty. We said yes, and then called the warranty company a month or so later to cancel it. They sent us a check for the prorated amount of like $1.8k or so AND we still kept the 0.9% APR.

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No matter what the Finance Dept tells you - the lender can not legally require you to sign for an extended warranty and more importantly can not change the interest rate if you do or do not accept the warranty. These extended warranties are huge profit margins for car dealers. They get to keep a hefty commission from the sale of the warranty if you keep it over X days.  I don't know the exact number of days, just know that before that time period they will lose the extra commission.  Maybe one of the others here knows the number of days. 

If you look at the actual contract you signed it will specifically indicate that the warranty is optional (no matter what the F&I guy says).

I am glad you received a refund. Most of the extended warranty's are not worth the extra expense IMO. But the only way to know is to actually read the warranty contract at the time of purchase to see what is actually covered.  

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I completely agree with you, and we would never get an extended warrant 99.9% of the time. However, they offered the 0.9% with the warranty and something like 4.9% without the warranty. Either way we had no payments for i think was 45 days so I think we came out on top (I think we cancelled before the 1st payment). I do completely agree though with your comment, and that these warranties are completely optional and should in no way affect the purchase term.

**Just checked and I think the extended warranty added ~$2k and we got ~$1.8k back....so I guess we did pay a bit on it

[Avrarose1]

Thanks for the  replies!  I was thinking the same thing about just canceling  the warranties we purchased.  Im just waiting for  the  paperwork from Capital one. fInance guy said first payment would be due 7/20...He did let us know that the interest rate was not contingent on taking the warranties.  I just don't know if he would of worked as hard to get the lower rate  for us if we didn't take them!

I am aware we can get out of the deal if they can't get us the 6.9 interest rate, I just would be embarrassed if we have to bring the car back because all our neighbors know we got a new car!! They don't know our credit situation..

[Remember0]

Just tell your nosy neighbors the car had mechanical problems, they'll be none the wiser.

[Avrarose1]

Just found out today Cap 1 did approve our loan!! 6.39 Interest.. Very Happy right now..

Thanks so much for all the help on this forum,  I have learned so much..

[ExplicitElicit]

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@Avrarose1 wrote:

Just found out today Cap 1 did approve our loan!! 6.39 Interest.. Very Happy right now..

Thanks so much for all the help on this forum,  I have learned so much..

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Congrats! Dealers don't always give you the lowest rate you're approved for, often they sell you the deal that makes them the most money so it could have been the 6.39% was available the whole time! Good job on standing your ground! Glad you got the lower interest rate.

It's sad i've had customers buy a new car and then get a call 1-2 weeks later asking for the car back because the financing did not go through. It's sad what financing offices do sometimes to make a $.