How is this even legal?

[Anonymous]

This just keeps bothering me so I had to post about it. I bought a 2017 RAV4 from a Toyota dealership about 3 weeks ago. They had 0% financing for 60 months on CPO RAV4'S so after putting 6k down my payments are only $225 a month.

What has me worked up is what happened the day after I bought the car. I received a phone call from a "concierge" at the dealership. She said her reason for calling was to give me my first payment date on my loan.

After she finishes congratulating me on my vehicle and giving me my loan info she proceeds to tell me about something called "AutoPayPlus".

She tells me that if I sign up and make my payments bi-weekly instead of monthly that I can pay my vehicle off three months early. I immediately think "why does it matter since I have 0% financing?". Not to mention I can just pay it off early on my own if I wish.

She pushes a bit and I say no and she says she will email me the info. A few minutes later I get the email and am outraged my what I read. This fantastic deal consists of the following: a $399 sign up fee and a $2.50 fee on EVERY PAYMENT (twice a month). So let me get this straight, if I pay $700 extra dollars to you I get exactly ZERO BENEFIT? None. Zilch.

How is this not considered some form of predatory lending? I cannot think of any scenario where this would help anyone. Maybe on a loan with a 20% interest rate? I am actually considering contacting a consumer agency in the state where I purchased it and filing a complaint.

I am very happy with the vehicle and got a great deal but I will never do business with them again. Am curious to hear what others think about this.

[Girlzilla88]

@Anonymous    Honestly it sounds like she is new or was told to push their new program.     It doesn't make sense to offer to someone that has a 0% apr I would just sweep it under the rug and keep it moving the poor girl just trying to do her job lol.

[Anonymous]

Look at your sales paperwork and contract. It should specify the terms, including APR.

[Anonymous]

I looked at and understand my sales contract and APR. How does that remotely have anything to do with what they tried to sell me?

[Appleman]

The dealership is always looking at angles to make more money. Only once have I been offered the bi-monthly payment option. Using quick napkin math I could tell there was little to no benefit to me and only upfront costs. Luckily, you were able to see through the 'scam' and not be taken advantage of by the dealership.

I would bet the concierge is required to up sell you on any additional products.

Thanks for posting as this may help another form member avoid this legal but expensive option with no benefit to the consumer (with 0% loan rate)

[Anonymous]

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@Anonymous wrote:

I looked at and understand my sales contract and APR. How does that remotely have anything to do with what they tried to sell me?

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Their rep saying something like that is a good sign to doublecheck, that's all. 

Sounds like she didn't bother reading your sales info and just went with some usual spiel. Sounds like a scummy business to try to sell something like that.

[Save-n-Invest]

I love that when they try to hustle us it's always a "poor girl".

[Anonymous]

lol, as if they didnt make enough money on you, trying to double dip

good for you, im sure many other calls that day they got some 

Congrats on your TOYOTA purchase!

[Kforce]

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@Anonymous wrote:

A $399 sign up fee and a $2.50 fee on EVERY PAYMENT (twice a month)

299+(2.50*115) = . So let me get this straight, if I pay $700 extra dollars to you I get exactly ZERO BENEFIT? None. Zilch.

How is this not considered some form of predatory lending? I cannot think of any scenario where this would help anyone. Maybe on a loan with a 20% interest rate? I am actually considering contacting a consumer agency in the state where I purchased it and filing a complaint.

I am very happy with the vehicle and got a great deal but I will never do business with them again. Am curious to hear what others think about this.

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This would cost (399+(2.50*115)) = 685.50

$25,000 @2.5% / 60 months with by weekly payments would save about $150 over normal loan (With no fees)

With an average car price of $25,000 and 60 months loan the break even interest rate is just shy of 10%.

Not a good deal with today's interest rates.  (<3%)

What a scam, between $500 - $600 in the dealers pocket !

[Girlzilla88]

@Save-n-Invest    Well if it was a guy I would have put 'poor fella' LOLOLOL