topic Re: Car Loan Offer in Auto Loans

Car Loan Offer

Mikey41 — Wed, 23 Oct 2013 00:14:48 GMT

I have a Scion xa worth $3500 according to Toyota. I owe $7300 but they offered me $6000 for the car.

After hours of waiting, I finally got to see some paper work from finance manager. He showed me the breakdown and a $2495 Toyota Platinum Plan which I didn't want. He said I don't have a choice; the finance bank has it in the loan. I know usually Toyota offers you the warranty,not anyone else.

So my finance amount increased by $2500 ,(warranty) which I way too much. I understand how car dealerships work but I'm not going to be exploited in such manner.

Can I get my own finance and walk in and take the car :not from TFS but my own bank?

Do you also think the manager will decrease the trade in amount?

Re: Car Loan Offer

09Lexie — Wed, 23 Oct 2013 04:25:27 GMT

They cannot make you buy a warranty. I would contact his boss and have him review your contract.

Re: Car Loan Offer

Creditaddict — Wed, 23 Oct 2013 07:26:58 GMT

That's crap... Not only write a letter to Toyota and cc that dealership... Go buy elsewhere, I hate these dealerships exist with these types of practices.

Yes you can get your own financing but I wouldn't buy a car from that guy... Other numbers are probably off too

Re: Car Loan Offer

StartingOver10 — Wed, 23 Oct 2013 12:15:47 GMT

As pointed out by the others - its pure BS.

The F&I guy is hoping you don't know that he can NOT require a warranty to obtain the financing. I have had the same thing happen where they actually argue with you and they all claim that the lender requires it. It is not true. In fact, I bet if you read the contract it will specifically state that the warranty is optional. Read the contract, point it out to him and then don't sign the contract unless he removes all the garbage and extra fees. In fact, the best thing to do is to buy from someone else at another dealership. If he is playing this old trick on you (its been around forever) then what else has he pulled on you?

Re: Car Loan Offer

KoolDev — Wed, 23 Oct 2013 23:56:28 GMT

You know, i think that is what happened to me a year ago. GRRRRRRRRRRRRRRRRRRRR

Makes me want to go find the contract dangit..

Question now arises, if i go refinance do i have to refinance that warranty charge (whats left of it) or do I get that back ?

Re: Car Loan Offer

09Lexie — Thu, 24 Oct 2013 03:05:27 GMT

@KoolDev

If you refi the car, in most cases, you can cancel the warranty and the refund will either be credited to your contract or to you. Depends on if you paid for the warranty and it wasn't financed.

Re: Car Loan Offer

KoolDev — Thu, 24 Oct 2013 04:06:58 GMT

I think they financed it

Re: Car Loan Offer

Mikey41 — Thu, 24 Oct 2013 11:40:43 GMT

I walked away and return only to pick up something I forgot then other managers were not aware so they totally fixed everything just to keep the sale.

I called every Toyota dealership to verify that it's not true and I also called TFS myself.

The director removed it and also offered it at 1/4 the price.

Re: Car Loan Offer

KeepingScores — Thu, 24 Oct 2013 11:47:00 GMT

You Don't HAVE to be a Victim When Purchasing a Car

Your car dealer must be related to my car dealer because the same scenario happened to me. Here's what I did to eliminate the possibility of a ripoff.

I called my credit union, Digital Federal Credit Union (DCU). I spoke to the consumer loans department and asked for their process to obtain a loan. Then I went to their website to be certain that the information that I received over the phone was the same as indicated on the website. It was. Next, I visited their forum and looked at all of the 1 and 2 star comments to see where others had gone wrong and c/p those comments into a word document. I learned from their mistakes and incorporated steps to insure success. I called the consumer loans department back and explained that I am old-fashioned and needed a pdf copy of the loan application instead of applying digitally.

DCU emailed me a copy of the application. I used the typewriter function in Adobe Acrobat and typed directly into the pdf. You can fill it out by hand if you choose. Along with the app, I turned in the following documentation as suggested by the forum: 1) the Retail Agreement for a Motor Vehicle which I obtained from the dealership that contained the Year, Make, Model and VIN # of the car that I was purchasing; 2) Earnings Statement or copy of a pay stub; 3) copy of my current Financial Responsibility ID card for car insurance, 4) my driver's license-front and back and a Fax Cover Sheet that listed each document in the package.

Then I made sure that each page in the package had the following information hand written on the top of each page:

Auto Loan Application, Current Date

My Name, Member #

My Telephone #, Page # (Page 1 of 6)

One hour after faxing the loan package, I called to verify receipt. I had already been approved for a 65 month loan at 1.99%.

The credit union required NO WARRANTY. Tax, title and all other fees were included on the purchase order or Retail Agreement for a Motor Vehicle do they were rolled into the loan. I asked the credit union to email me a copy of the check which I promptly printed and provided a copy to the dealer. They were stunned.

I walked out with the car that same day as they let me "test drive" the car until the check arrived. Five days later, we closed on the car and I am ONE HAPPILY EMPOWERED NEW CAR OWNER.

I really hope that this helps you take back control. Call your bank or credit union and win on your own terms.

Re: Car Loan Offer

KoolDev — Thu, 24 Oct 2013 13:50:00 GMT

I will be on the way to the Nissan Dealership today. The finance guy told me that in order for TD Auto to finance the car, they required me to get a 24month/2 yr warranty. I called and confirmed with TD Auto about it.

Wished i was here last year lol. Love it how a post can help ! The lady at TD Auto said that the Nissan Dealership would write a check and send it to TD Auto to go against the blance of the car.

Re: Car Loan Offer

StartingOver10 — Thu, 24 Oct 2013 14:49:06 GMT

Yea KoolDev!

I wish everyone would do exactly as you are doing. There is huge profit for the dealer in these warranties that's why they lie. It is written as optional in the contract to warn consumers but the F&I guy is pretty good at trying to get you to sign without reading. (I always read paperwork - it drives them nuts, but I can't tell you how many times it has saved my bacon).

For anyone reading they should do exactly as you are doing KoolDev....get the refund. Apply it to your outstanding balance.

Re: Car Loan Offer

maiden_girl — Thu, 24 Oct 2013 20:18:22 GMT

@StartingOver10 wrote:
Yea KoolDev!

I wish everyone would do exactly as you are doing. There is huge profit for the dealer in these warranties that's why they lie. It is written as optional in the contract to warn consumers but the F&I guy is pretty good at trying to get you to sign without reading. (I always read paperwork - it drives them nuts, but I can't tell you how many times it has saved my bacon).

For anyone reading they should do exactly as you are doing KoolDev....get the refund. Apply it to your outstanding balance.

You can buy it if you wish but ALWAYS makes sure there is a fee-less option to cancel!!

Re: Car Loan Offer

KoolDev — Thu, 24 Oct 2013 22:09:27 GMT

No fee to cancel. The business manager there today said the last guy was fired because of such practices. I have to take the vehicle back to them Monday (when the wife gets back) so they can see the mileage and the remainder will be sent to the finance company and go towards the principal of the car.

so thats 700 (warranty was 1400) to take down the debt !

wooohooooo

Re: Car Loan Offer

Mikey41 — Thu, 24 Oct 2013 22:16:52 GMT

I called to collect something I forgot and another manager was like I heard you pulled out of the deal because you don't like he monthly payments. I explained to him that it's not that, it's the warranty being Forced upon me. He said comeback and they removed the warranty then offered me it for $600 instead of $2400. They were very sorry about how the other manager treated me.

Re: Car Loan Offer

KoolDev — Thu, 24 Oct 2013 22:33:09 GMT

Thats awesome ! Like i told the guy today, if the original guy that processed the loan would have been honest, i might have got the warranty. But, it Pi**** me off that he blantantly lied.

Good Job Mikey

Re: Car Loan Offer

Mikey41 — Thu, 24 Oct 2013 22:59:10 GMT

I did all my homework before buying this car. I was approved for $50 000 from my CU so I had many options.The sales manager and director apologized for everything that happened!

Re: Car Loan Offer

KeepingScores — Fri, 25 Oct 2013 19:40:21 GMT

Mikey41 and KoolDev, I am so proud of the steps that you took to protect your assets and your future. YEA!!!

In the future, I hope that lots of others find this post to protect themselves from this kind of abuse and misuse.