Re: Yo-yo scam exploits credit-cha
llenged car buyers
04-14-2012 12:31 PM
Yeah, my husband got pretty much taken on the car he just bought. I don't have the heart to tell him that though..
Dealer pulled his credit report and told him that he'd get him 12%, sent him home with the car with $1000 down. Three days later calls to say there's a problem with the loan, can he put another $1000 down. Okay, so, goes puts another $1000 down. Calls again in a few days to say that it still isn't working out, can he put down another $1000, so he puts down another $1000.
Gets the loan paperwork two weeks later and he's paying 24% interest. Car was only $4500, but, despite putting $3000 down he still owes $3900 at 24% interest. I tell him to bring the car back then since the loan still hasn't been signed, but, my husband was embarrased to bring it back since all his coworkers and friends already saw it. He was just angry about the interest rate, he hasn't yet put two and two together to understand that he should only owe about $1800.
Yup, I'm married to someone who can't do basic math and lets pride get in the way of common sense, but, stupidity should be painful, so I'll let it slide this time.
I would venture that it's a lot more common at little hole in the wall type dealerships that can just close up and rename themselves when they attract too much negative attention.
Oh well, at least now he's had a car loan which was a credit type he was missing before, so, I guess that's worth something, but not as much as he paid for it.. lol
UMMM... I don't even know what to say... he should be embarrased that he would allow someone to take that much money from him not that his co-workers saw a "new used" car already!!!! PLEASE PLEASE HELP HIM, if he paid $3k down and the car is $4500 why wouldn't he just pay cash!!!
and in what world would they be able to pull off legal loan documents showing purchase price $4500 + tax/lic, etc. $3k down, loan of $3900 still?! who cares about interst, take it back and pay cash and drive away no loan!!!!
Back to the original poster, I'm sure it happens much more for bad credit but my friend traded in his 08-09' (I forget exact year) Toyota Corrola for a 2010 Toyota Prius I believe. The dealer offered him like 1.9 or 2.9 (something very low based on his 810 credit score) but he was also very upside down on the corolla, taxes in CA very high and he put nothing down!!
In the end his loan payment was still cheaper and lower interest then the Corolla so it made since to him... Well despite an 810 anything toyota did not like financing $23-$24k on a car that the dealer valued at $16k to make the numbers work or trade in, not sure which numbers were so far off... either way like month 2 or 3 they said he needed to bring the car back or arrange his own financing (This is where you should get smart with yourself and research all the laws right quick!!!)
After 30 days in CA, 1. they can't make you bring it back, 2. if they don't have your car you traded in something else happens, overall he said I'm not bringing it back, I'm not giving you money and I'm not paying any different then my loan papers show....
Basically left the dealer paying what Toyota wouldn't or something.
I had some issues back in 2006 when I took my 1 month old 2005 G35 back to dealership and traded for a 2006 QX56... I had 8.9% with Infiniti for the G35 and the Manager (not finance) told me he could put me in the QX56 for $40 more than the FX35 I was looking at. (ummm difference of only about $20k in price!!!) He also tier 1 my credit (650 at time from purchase of G35, didn't pull new credit) and I drove off the show room floor (I was very stupid) but 4.9% at 72 mmonths was promo then.
I did not have financing for over 3 months, Finance manager called me 2 for income and bank documents and third time I told him I can be at the dealership in 30 minutes to pick up my G35 or he could send me the payment book from the bank and I'll keep the QX56... I never heard from him again!
To sum up... DO NOT take the car if you do not have final financing and signed papers!!!
I don't care what they say (if you have to go to lunch, meeting, whatever and you are coming back in 1 hours, I don't care if it's 5 minutes, DRIVE YOUR CAR NOT CAR YOU ARE BUYING!!!!
It's a tough lesson if you learned it yourself, I know it won't happen to me again and I didn't even really get scammed, I got what I wanted even if not smart... but stay cool and clear so you can process things and don't be afraid to say I will be back tomorrow (keep your car!)
and if a sales person or finance person starts to insult me in a sales tacted to make me feel I have no options this should make the hair on your neck go up and say "GET OUT!!!" cars are available by the millions, dealerships are too... find another