topic New Auto Loan want to PIF in Auto Loans

New Auto Loan want to PIF

Anonymous — Fri, 29 Dec 2017 05:20:36 GMT

Just got an auto loan last week but would like to PIF by the first payment date which is 2/2/18.

The auto loan is with Chase, we told the financing person at the dealership our plan and he said to request a "10 Day Payoff" so there isn't any residual amount left we forget to payoff due to interest.

Our Auto Loan is through Chase (what the paperwork said at the dealership), they told us our financing charges from 12/17-2/2/18 would be under $30. What are your thoughts on this?

Re: New Auto Loan want to PIF

Anonymous — Fri, 29 Dec 2017 17:15:37 GMT

It would be impossible to know wether or not the finance charge's are $30 for that date range without more information. Such as APR, amounted financed, finance term (54/60/72 mo?) and day's until first payment. An easy way to find out what you will pay in interest in call Chase and get a payoff amount for 10 days out, and also ask for the Per Diem. The Per Diem is the daily amount of interest charged on a loan.

Re: New Auto Loan want to PIF

Anonymous — Fri, 29 Dec 2017 17:30:15 GMT

Amount financed $19,600
APR 5.9%
Days until PIF 45

Though I wasn't too much asking what the amount will be. I was more or less asking is PIF by the first payment date a good idea, what are the ramifications, and any other information that might be helpful? But if you do know the finance charge I'd like to know because at first the sales rep said they wouldn't charge us a finance charge if PIF within 45 days. Then the finance person said he was mad the sales rep said that, and told us it shouldn't be more than $30.

Also, they offered us to extend the warranty for $1,400 is that a good idea or ripoff?

Sorry this is our first car purchase

Re: New Auto Loan want to PIF

Anonymous — Fri, 29 Dec 2017 17:34:02 GMT

Re: New Auto Loan want to PIF

Anonymous — Fri, 29 Dec 2017 17:59:57 GMT

You will abosolutely pay finance charges for the days since you contracted until you pay it off. Paying it off won't necessarily hurt your score unless its the only installment loan you have open.

As far as the extended warranty it just depend's what it cover's, deductible, mileage/term expiration. Always know that extended warranties can be negotiated down in price, that warranty could very well have $500-1000 worth of profit in that price so try and negotiate a better price once you find out the terms of the warranty. Is it a comprehensive ( bumper to bumper) or a power train warranty?

Re: New Auto Loan want to PIF

Anonymous — Fri, 29 Dec 2017 19:09:06 GMT

Do you think the financing charges would exceed $30 in the given timeframe?

We have comprehensive for 3 years already.

I believe it's for powertrain to change it from 60k to 100k miles.

Re: New Auto Loan want to PIF

Anonymous — Fri, 29 Dec 2017 19:11:14 GMT

Doing short math on my own it looks like it would be $96 per 30 days financing charges with $19.6k financed @ 5.9% which is definitely not $30 and a lot more than the promised amount of $0.

Am I missing something? I'm okay with paying up to $30, but not $100.

Re: New Auto Loan want to PIF

Anonymous — Fri, 29 Dec 2017 19:25:29 GMT

With my rough calculations your going to pay north of $100 in finance charges. Unfortunately it's your responsibility to pay those charges regardless of what the dealership told you.

Re: New Auto Loan want to PIF

Anonymous — Fri, 29 Dec 2017 19:28:21 GMT

A powertrain warranty extending it 40k miles for $1400 sounds a little bit pricey, if that is something you are interested in, I would recommend trying to negotiate the price down to 900-1000. But, do know, that a powertrain warranty isn't all that it is cracked up to be, they normally only cover major malfunction's within the engine/transmission/driveaxe/awd four wheel drive system. For example, if a check engine light comes on for a mass air flow sensor that is faulty, that is not covered under powertrain warranty. Now if your transmission goes out or start's slipping, that is covered. If you are interested in a warranty I would inquire about a comprehensive warranty that extends it from the factory 3/36k to something higher but only at a decent cost. A comprehensive warranty will cover nearly all items on a vehicle excluding routine maintnance item's such as tires, belts, hoses, etc.

Re: New Auto Loan want to PIF

Anonymous — Sat, 30 Dec 2017 03:08:55 GMT

So we can't file a complaint against the dealership? We have no recourse?

I live in MN and it says that's considered a verbal contract which is enforceable the same as a written contract. I'm okay paying up to $30, but $100 no way I'm definitely not okay with that. Originally we were promised $0 in financing charges if PIF by the first payment due date (within 45 days).

Re: New Auto Loan want to PIF

Anonymous — Sat, 30 Dec 2017 15:16:09 GMT

Unfortunately it may have been a mis-communication between you and the salesman, the salesman may have thought you were asking if there was a early payoff/finance charge for paying it off early. Some bank's don't charge simple-interest or they charge fee's for early payoff and he may have thought you were asking that.

In my state there is no recourse in this situation, you signed a contract with a bank, not the dealership, which states the apr/finance charges/etc. Yes the finance manager is wrong for giving you bad information and not doing the short math for you to have a general idea, however I think you would have trouble forcing the dealership's hand to pay the overage amount of the quoted finance charges.

Re: New Auto Loan want to PIF

Anonymous — Sat, 30 Dec 2017 22:29:48 GMT

We asked him both questions.

A) Early Payoff
B) Interest charges

To be he promised there would be $0 if paid in full within 45 Days.

You don't think the dealership would do anything? We would likely file a CFPB Complaint as well as one with the Department of Consumer Affairs.

I'd think the dealership (which is actually the largest in my state they have several dealerships for several car brands) would negotiate something maybe a couple free oil changes after the 2 year maintenance package is over, or at least something.

Also, both the manager and the sales rep told us we'd receive an email survey (which we did) and that if there's anything stopping us from giving them all 10's to call them and they'll fix it prior to us doing the survey from Toyota. Maybe a bargaining chip?

Re: New Auto Loan want to PIF

Anonymous — Sat, 30 Dec 2017 22:30:35 GMT

We asked him both questions

A) Early Payoff
B) Interest charges

To be he promised there would be $0 if paid in full within 45 Days.

You don't think the dealership would do anything? We would likely file a CFPB Complaint as well as one with the Department of Consumer Affairs.

I'd think the dealership (which is actually the largest in my state they have several dealerships for several car brands) would negotiate something maybe a couple free oil changes after the 2 year maintenance package is over, or at least something.

Also, both the manager and the sales rep told us we'd receive an email survey (which we did) and that if there's anything stopping us from giving them all 10's to call them and they'll fix it prior to us doing the survey from Toyota. Maybe a bargaining chip?