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!
