topic Re: Dealer Scam 0% APR GM Financial Offer in Auto Loans

Dealer Scam 0% APR GM Financial Offer

Nunthewizr — Sun, 16 Feb 2020 18:48:59 GMT

In January 2020, I stopped into a Chevy Dealership in Illinois to look at used trucks to replace my high mileage SUV. I spoke to a Sales Advisor and told him that it would be a challenge to find me a vehicle based on my 541 credit score and $4-5k negative equity of my trade.

He said that a good option for someone like me would be to purchase a new vehicle instead that offered a lot of rebates and/or incentives which I could use to offset my negative trade equity and apply as a down payment. He said it was very common for individuals in my situation to do so and to me it made perfect sense.

I was shown a 2020 Chevy Silverado with a MSRP of $43780 that was sale priced at $31120 with rebates and incentives applied. This price included $8750 in GM incentives ($5500 Consumer Cash, $2500 Bonus Consumer Cash, $750 GM Loyalty Cash, and $1930 in Dealer Discounts). The Sales Advisor confirmed that I qualified for all of those and quoted the price as $31120.
After evaluating my trade, I was told I would have $4400 negative equity which they would add into the loan for the new truck. I was fine with that because the rebates/and incentives basically cancelled it out and I would still get a great discount on a new vehicle. Plus, I was putting $2k cash of my own down.
When they ran my credit application they came back with a proposal of $940 a month at 16.9% for 72 months. I declined and 15 minutes later they got a better offer they said and proposed $880 at 12.9% for 72 months. I declined again because it was out of my payment range.

I was then asked by the Dealership GM what it would take for them to get me to purchase the truck. I said I just couldn't do it at that payment and my maximum payment would need to be $750 or lower. He said, "If I can get you approved for that payment amount at 3% will you buy the truck?" I actually chuckled and verbally said I would because there was no way he would be able to with my 541 credit score.

I was ready to leave when the Sales Advisor said that they got me approved for $743 at 3% interest for 72 months. I asked how that was even possible? He said that him, the Sales Manager, and Dealership GM pooled together their 6 "Dealership Cash" vouchers (dealer vouchers that I was told they received from GM to assist customers in similar situations which valued from $500-1000) and used those to sweeten the deal with the GM Financial loan representative. Not to mention that the GM was buddies with him and called in a personal favor.

I was told that I would be "crazy" if I turned that offer down and I agreed.

When signing my purchase agreement I noticed that the purchase price was listed at over $48k. The Finance Manager said not to take "stock" in that number because it was inflated to make it look good for the bank and was based off original MSRP and my negative equity being added. He said that the numbers would equal out to the agreed upon payment and terms. He was right and they did.

However, several days later after reviewing my contract I noticed that they didn't apply any of the rebates or incentives I was told I was qualified for. After several emails to the Sales Advisor and finally the GM I was told that there were no errors in the financing documents. I asked to meet with the GM in person to show him that they weren't applied.

When I meant with the GM he kept focusing on the fact that they worked so hard at getting me to the payment I requested plus getting "someone like me with a 541 score" a great rate of 3% through GM Financial took a lot of work and favors. I said I appreciated that but just wanted to know why the rebates and incentives were not included in the final price because I assumed they were. Finally, he said that it was because I didn't qualify for any of them. I disagreed and said that according to Chevy whom I contacted directly and my Sales Advisor the day I purchased the vehicle, I qualified for $8750 in GM incentives and $1930 in Dealer Discounts. I said that the only way I would not have qualified is "IF" I had chosen the 0% APR GM Financial financing offer which I was never qualified for or offered based on my 541 credit score.

After going in circles he finally said, "you didn't get any incentives or rebates because you took the special financing offer." I said that the only special financing offer was the 0% GM offer which I did not get offered nor did I take which was evident by the 3% APR on my purchase agreement and GM loan documents. So, I insisted that this was incorrect and asked him to correct my paperwork to include the incentives. He refused saying that while I didn't get the 0% APR, he got me approved for the 0% APR Program which allowed him to get me the 3% rate thus voiding my option of receiving any of the GM incentives or dealership discounts.

I said that I was never told or given the option to choose between the incentives or the 0% GM Financial financing offer. I never asked because I was told and knew based on my credit score that the latter was not an option. I looked up the GM financing offer and said that there is no such thing as a special 3% GM Financial financing offer advertised or disclaimer saying that the 0% offer can also be the 2%, 3%, 7%, etc. financing program that would void all incentives. He said, "I don't know what to tell you and you signed the contract so technically, you accepted the financing offer therefore you waived the incentives." I said that I signed thinking I was getting all those incentives and was never told otherwise.

He also said that he would love to explain to a judge or jury how ungrateful I was for getting someone like me a great interest rate and out of a vehicle I was upside down on. I said, "Yes, I would love to tell them how you charged me full MSRP plus $4k negative equity for a total of almost $50k on a vehicle sale priced at $31k. However, you hustled me by not telling me that you got me the 0% offer or the 0% which is really the 3% offer voiding all these incentives and discounts which I am sure went back in the dealership pockets." However, I can't sue since I had to sign an arbitration agreement.

Sorry for venting but this is beyond wrong.

- Never told I got the 0% APR GM Financial financing offer which was the 3% GM Financial financing offer

- Never given option of choosing 0% financing offer over incentives

- Never agreed to accepting 0% financing offer over incentives

- Never told I was given the special financing offer that would void all incentives and discounts until I pressed the GM

I wonder if GM or Chevy is aware of this finance option since it's not advertised. I wonder if GM Financial knows that my 0% or 3% financing offer was done by personal favors especially since I have a 541 credit score. I am sure the dealer gets a cut of my loan interest and probably all of my incentives since I am sure they figured out a way to keep them.

Any advice would be appreciated. Thanks!

Re: Dealer Scam 0% APR GM Financial Offer

Anonymous — Sun, 16 Feb 2020 20:16:32 GMT

Sorry for your experience during your recent truck purchase. The whole situation doesnt sound great. There are some truths and not truths on how the dealer went about it. The good news is they are not lying about the special financing offer. With your credit score it would of impossible to acquire a decent auto loan rate. If you had a relationship and history with a CU maybe you could of gotten under 10%. They probably also had to buy down the rate as they said to get to 3%. Most of the incentives also wouldnt of qualified with the special financing. One blatant lie though is that there cant be any dealer discount along with that fiancning. They are able to discount whatever they want. If you want to post or PM me a copy of your purchase/sales contract with perosnal info and then vin blacked out can analyze the deal better for you.

Re: Dealer Scam 0% APR GM Financial Offer

Nunthewizr — Sun, 16 Feb 2020 23:14:07 GMT

Thank you for your reply. However, I think that I may not have presented my question as well as I could have.

The advertised offers available to me when I purchased this vehicle were a combined incentive package that included $8750 in GM incentives and $1930 in Dealer Discounts that everyone receives OR 0% APR GM Financial financing for 72 months. It was either one or the other. Since I was told my credit score would not meet the criteria of the 0% I did not consider that I would get it.

Even if I was given the option, I would of took the huge incentives.

When I asked why I didn't get the incentives that I thought I was and the incentives I was verified as qualified for I was told that I got the 0% APR GM Financial financing and forfeited all the incentives. However, my APR is 3% not 0% and I was never told that I got the 0%, never chose it, and never agreed to it. Plus.....I didn't get 0% but 3% which is not offered as a GM/Chevy promotion. There is no 3% promotion that would nullify my qualifications of getting the incentives. I was under the impression that the Dealership General Manager was getting a personal favor from his "buddy" at GM Financial in getting me a great interest rate so I would buy the truck. I don't see how he can say I received a promotional rate that isn't even advertised thus nullifying any incentives. I would have never accepted this offer had I known my friendly Chevy Dealership General Manager was going to say he worked a deal out as a personal favor then say it nullified all incentives.

Re: Dealer Scam 0% APR GM Financial Offer

Anonymous — Mon, 17 Feb 2020 00:36:27 GMT

What is your zip code and what trim and configuration truck did you purchase? Also is your rate 3% exact or something like 3.8%?

Re: Dealer Scam 0% APR GM Financial Offer

Anonymous — Mon, 17 Feb 2020 00:37:24 GMT

I understand being angry -- you were deceived. It's too bad the SM didn't walk you through your options, because I'd say you got a decent deal, all things considered.

$743 x 72 = $53,496.

Not bad for a vehicle listed at $43,800 + $4400 debt.

That's roughly the equivalent of financing $38,000 @ 12%, which I'm not sure you could qualifty for with your listed credit score. Not with that small of a downpayment, I wouldn't think. (Years ago, with similar scores, I put down 20K to get 10.9% from GMC).

Re: Dealer Scam 0% APR GM Financial Offer

Anonymous — Mon, 17 Feb 2020 00:47:53 GMT

The main issue with the deal is when you went from talking structure of sales price to negotiating base on monthly payment. You specifically said you would need a payment under $750, and the dealer ask you if they could get you approved for that payment would you accept. At that point the dealer will structure it however they like to fit your payment parameters.

"I declined again because it was out of my payment range.

I was ready to leave when the Sales Advisor said that they got me approved for $743 at 3% interest for 72 months."

Re: Dealer Scam 0% APR GM Financial Offer

Nunthewizr — Mon, 17 Feb 2020 01:17:11 GMT

My zip code is 52803 and the rate was a flat 3.0%. I purchased a 2020 Chevrolet Silverado Custom Trail Boss 1500 Crew Cab, Short Bed : 2CX : 4WD. Just the base options with no upgraded packages.

Re: Dealer Scam 0% APR GM Financial Offer

Nunthewizr — Mon, 17 Feb 2020 01:24:12 GMT

Thank you for your reply. I get that I got a great deal interest wise. However, the way it was presented is that he had a "buddy" and got the 3% rate as a personal favor. There was no mention that it would nullify my incentives and I was never told it would. I just don't get how it can since it was only the advertised 0% financing offer that would. There was nothing advertised by Chevy, GM Financial, or the Dealership that said that 3% financing was something that they offered in lieu of the incentives. I just think it's sketchy and almost a made up rule. I wouldn't be surprised if they somehow end up cashing in my rebates. Just very sneaky I think.

Re: Dealer Scam 0% APR GM Financial Offer

Anonymous — Mon, 17 Feb 2020 01:36:48 GMT

If you want to get ripped off at a car dealership, make deals based upon monthly payment amount.

if you want to get the best deal possible, make a deal based upon total purchase price.

This is taught as lesson #1 in car buying 101. Regardless, you got a pretty good deal given all the circumstances involved.

Re: Dealer Scam 0% APR GM Financial Offer

tcbofade — Mon, 17 Feb 2020 01:49:07 GMT

Um, I'm sorry that you're unhappy.

Go back to that $32k sales price and add 72 months of interest at 22%.

Sorry that you "lost the incentives", but you came out miles and miles (and dollars) ahead...

Enjoy your new truck and your 3% loan.

Re: Dealer Scam 0% APR GM Financial Offer

Anonymous — Mon, 17 Feb 2020 01:54:34 GMT

Just because all you see is the 0% apr offer for *Qualified Buyers* special financing rate doesn't mean it's the only one available. There are multiple special financing rate options available. As for if the dealer is receiving the rebates without you knowing, that is not possible. All incentives included in the deal would be on your purchase contract. That being said, I believe your Loyalty cash should have still applied, not for certain. And also you should have been able to get a dealer discount of at least 10% off on the deal, roughly $4k. Dealer discount does not impact GM special financing rate.

Re: Dealer Scam 0% APR GM Financial Offer

Anonymous — Mon, 17 Feb 2020 02:21:34 GMT

The deal is done all you can do is remember it as a lesson for next time. Best advise I can give since your on the MyFico forums is to check out the credit rebuild section and start working on your credit scores so you wont be in this position next time. Having that FICO score would have made any auto loan approval difficult. In the future once your scores get better try having your financing secured before going into a dealership. Just enjoy the New truck!

Re: Dealer Scam 0% APR GM Financial Offer

Brian_Earl_Spilner — Mon, 17 Feb 2020 02:37:31 GMT

Are you angry because of principal? Without any concrete numbers to crunch, using estimations based on what you've posted, you're saving about $2k with how it's currently set up. Were you thinking you could refinance in a year?

Re: Dealer Scam 0% APR GM Financial Offer

tparks5961 — Mon, 17 Feb 2020 02:52:01 GMT

Holy cheese and crackers!

3%? I got 5% with an 806 Fico score.

Only you know what your situation. Can you comfortably cover the $743.00 payment?

Re: Dealer Scam 0% APR GM Financial Offer

TattnallTrio — Mon, 17 Feb 2020 06:07:40 GMT

Let's look at some numbers. Dealers are legally allowed to Mark up an APR by 4%. GM Financial probably called the deal at 12.9% and the dealer marked it up to 16.9%. They probably "bought down" the interest rate from 12.9% down to 3%, likely at $600 per percent.

The lower credit score comes at a price. The truck with rebates gave you a great Loan To Value calculation, plus the negative equity.

I wouldn't like being lied to either, but they got you financed for a brand new truck and let this be an expensive lesson to read what you sign. In 72 months your credit will be re-established.

PS) Bob Rohrman Hyundai in Indianapolis hosed me on a deal, so I can relate.

Re: Dealer Scam 0% APR GM Financial Offer

tcbofade — Mon, 17 Feb 2020 11:28:30 GMT

@tparks5961 wrote:
Holy cheese and crackers!

3%? I got 5% with an 806 Fico score.

Only you know what your situation. Can you comfortably cover the $743.00 payment?

Right???

I got 5% with a 740 or so...

Re: Dealer Scam 0% APR GM Financial Offer

Nunthewizr — Mon, 17 Feb 2020 17:20:12 GMT

Thank you for your reply! I can afford it and I do appreciate getting the great rate. I guess my biggest issue is how the Sales Advisor told me I was getting almost $10k off MSRP in the form of incentives and discounts and then the General Manager telling me he called in a "favor" to his GM Financial buddy and got me 3% financing. I was under the impression that I was getting the discount and the reduced rate. It was never mentioned it was one or the other. I thought that was sketchy especially when I was finally told almost three weeks later that I got the 0% GM Financial financing offer (which was actually 3% and not advertised or disclosed to me) that nullified all incentives and discounts. If you look at the GM/Chevy offer disclaimers it basically says that you get either the 0% financing OR the incentives. It doesn't say that you get either the 0%, 1%, 2%, 3%, 4%, etc OR the incentives.

Again, I know that the 3% is awesome for someone with my credit score but I think it's shady AF that I was never told it would nullify everything else and never considered it because it was never advertised by GM/Chevy or the Dealership that 3% financing was actually the same as 0% financing.

Re: Dealer Scam 0% APR GM Financial Offer

Anonymous — Mon, 17 Feb 2020 17:34:54 GMT

Dealerships have 2 different apr's. The one you qualify for and the one they tell you. The difference is what the dealer makes on your interest.

he could of talked gm financial into 0%, thus eliminating your rebates, sold you 3% so the dealer makes 3% of the interest on the loan.

they made full value of the truck profit and the 3%.

you're happy with your truck and your payments, lesson learned. They helped you so let them help themselves on the profit side.

Re: Dealer Scam 0% APR GM Financial Offer

sccredit — Mon, 17 Feb 2020 17:35:48 GMT

I'm gonna be the tough love here and I apologize in advance if I come off as harsh. This is something you should have looked at before signing the contract. I understand the pressure in finance and I know they're trying to push you through as quickly as possible. However, you are an adult and you signed an agreement. If you went in front of a judge that is exactly what the judge would say. There is a reason car dealers have a reputation but they only get away with it because we as consumers go along with it. Let this be a tough lesson but enjoy your new truck. Those Trail Bosses are very nice trucks.

Re: Dealer Scam 0% APR GM Financial Offer

Jannelo — Mon, 17 Feb 2020 17:38:08 GMT

I agree that they were very shady, and I wouldn't be happy with all of the double-talking. But the good news is, 3 percent is amazing for your credit score.