Final purchase amount question

[Anonymous]

Hi,

    What is the difference between the purchase price and amount due on delivery? Thank you in advance.

[ojefferyo]

---

@Anonymous wrote:

Hi,

    What is the difference between the purchase price and amount due on delivery? Thank you in advance.

---

Purchase price is for what you buy the item for, due on delivery could mean a variety of things such as first payment, down paymeny, and so on but that's the amount they want from you right then and there before handing over what you bought.

[Anonymous]

Thank you for responding.

     So due on delivery are document fees and service contract amount plus purchase price? And the document fees and service contract amount are rolled into the purchase amount?

[Anonymous]

---

@Anonymous wrote:

Thank you for responding.

     So due on delivery are document fees and service contract amount plus purchase price? And the document fees and service contract amount are rolled into the purchase amount?

---

They are not rolled into the purchase price.  Those payments are due via certified check/whatever payment method was discussed when the car is delivered as I am guessing this is a lease?  1st month payment, document, acquisition fee, taxes etc.. are due when you sign the paperwork and get the keys.

[Anonymous]

Hi,

    No, this is a retail purchase. I'm trying to figure out if the service contract is a requirement. I was supposed to pick up the jeep yesterday, but there was a delay which has given me time to look over the paperwork. The service contract cost is nearly 3000 for a 2008 wrangler. They are only asking me to put 325.00 down, so I assumed this amount was being rolled into the purchase price (due on delivery amount)?

[ezdriver]

---

@ojefferyo wrote:

---

@Anonymous wrote:

Hi,

    What is the difference between the purchase price and amount due on delivery? Thank you in advance.

---

Purchase price is for what you buy the item for, due on delivery could mean a variety of things such as first payment, down paymeny, and so on but that's the amount they want from you right then and there before handing over what you bought.

---

Due on delivery is the total of purchase price, title/registration/dealer fees, sales tax, cost of extended warranty, etc. minus your down payment.

You mentioned a "service contract" in a previous post. I'm assuming that you meant "entended warranty" contract. Such contracts are not mandatory, but if chosen by a buyer, the cost of said contract is added to all the other costs.

[Hoya08]

---

@Anonymous wrote:

Hi,

    No, this is a retail purchase. I'm trying to figure out if the service contract is a requirement. I was supposed to pick up the jeep yesterday, but there was a delay which has given me time to look over the paperwork. The service contract cost is nearly 3000 for a 2008 wrangler. They are only asking me to put 325.00 down, so I assumed this amount was being rolled into the purchase price (due on delivery amount)?

---

As others have stated, the purchase price is the price agreed on for the vehicle only!  Nothing is rolled into the purchase price as that is the price of the vehicle.

All other document fees, taxes, service contracts, etc are requisites and/or voluntary additions.

The "due on delivery" amount is the purchase price plus requisite/voluntary fees, and less any down payment.

Be sure the purchase price line item is what you agreed to, and there should be a line item for the ~$3,000 service contract.  The service contract is voluntary should you wish to cancel/remove it.

[Anonymous]

Okay. Thank you all for the heads up. I should be picking up the jeep this afternoon, and will immediately tell them I will not be purchasing a service contract. I didn't give any money for the purchase, and just have the buyers order, so they should just print out a new one, right?

I called the financing credit union and was told they do not require a service contract, and also looked up the FTC which also said it was not required for financing. The finance guy tried to give me the impression it was required to get the lowest APR. I'm happy I decided to not give any money until the jeep was ready for pick up. What a jerk. He flat out lied. Will be interesting to see what happens when we sit down for the final signing.

[StartingOver10]

---

@Anonymous wrote:

Okay. Thank you all for the heads up. I should be picking up the jeep this afternoon, and will immediately tell them I will not be purchasing a service contract. I didn't give any money for the purchase, and just have the buyers order, so they should just print out a new one, right?

I called the financing credit union and was told they do not require a service contract, and also looked up the FTC which also said it was not required for financing. The finance guy tried to give me the impression it was required to get the lowest APR. I'm happy I decided to not give any money until the jeep was ready for pick up. What a jerk. He flat out lied. Will be interesting to see what happens when we sit down for the final signing.

---

This is one of the major scams F&I people perpetuate on consumers. They lie about these stupid service contracts thinking you won't check it out.

Glad you checked  and I'm glad you are declining it. It is worthless. If he tries to insist - walk out. I am also glad you are getting your financing through your CU so you can verify with them that this wasn't required. Even right on the contract there is a huge large print warning that says these service contracts (or extended warranties) are OPTIONAL and not required. 

Read every word before you sign it so he doesn't try to slip something else in on you.

[Anonymous]

I would say what the F&I guy did is shocking but unfortunately it is all too common. The guys on this thread are all correct. Service contracts are optional and have no effect on APR. Just the fact this guy is a liar should stop you from buying a service contract from him. I do see how it is $3000 though, used cars are expensive to insure against repairs.

When you go back in he owes you the APR you already contracted at whether you buy the service plan or not. If he refuses tell him you know your rights and if he still refuses talk to his manager. Be prepared to back out of the deal over this.

And if you really want to screw him up get your own financing in addition to taking out service contract.