Posts: 8,837
Registered: ‎03-06-2010
Re: Anyone have experience with Credit Acceptance auto loans?

joann2013 wrote:

We just purchased a SUV the last of December for around $10,000 and later learned that the finace charge was over $9,000 which will cause us to pay $23,000 for the truck.  I called customer service and asked if we could return the truck to the lot but they said NO that they would have to repossess the truck even though its voluntary and we would still be responsible for paying a lump sum due to we signed a contract with the finance company.  This is a total rip-off.  I don't even care about the credit at this point, I just want out of this high, rediculous, finance charge.  We are paying double for the vehicle!!!!   I would say No, do not deal with this company.

I just have to respond to this comment:  the finance charge is the cost of money - not the cost of the vehicle. So you are still paying $10k for the vehicle + another $9k for the priviledge of borrowing the money.


If you had cash, you would be paying the $10,000 (or maybe less) for the vehicle you purchased above. But, since many of us don't have the cash, we have to finance the purchase. Borrowing the funds costs money in the form of interest. That interest rate is negotiable, but it is based on your credit file plus how good you are at negotiating with the finance guy at the dealership. He/she gets a bonus for hitting you up for additional interest beyond which the lender will accept. Note, it is common for the F&I guy to tack on at least 2% to the rate the bank will really take for your deal. Anyway, I am rambling now.


My point is this: if you don't like the rate, don't take the deal. If you don't like the rate and can't negotiate a better deal, leave the dealership and go some where else to buy. If your back is against the wall that's when the worst decisions are made. BTDT. Smiley Sad


Having said that, if you are currently in a bad deal, then work on your credit to refiance out of it or sell the car. Don't trade it as it will make the debt worse.


If you remember to separate the transactions: the purchase of the vehicle vs the cost of money, you will get better deals in the long run.