@FSUGAPEACH78 wrote:
Hi Guys,
Me and my husband have Auto Enhanced FICOS between 612-640. We are looking at purchasing a 2011 Tahoe Z71. We will be trading in 2 vehicles which one of the vehicles we are dumping (2007 Acura MDX) we are in the hole about $5k and the other vehicle we have about $6k worth of equity. We were approved yesterday by Ally financial (after me pitching a fit at his previous 4 offers of interest rates) for 0% for 60 months. According to the sales guy to get this rate I have to buy GAP insurance as well as an extended warranty plus put down $3k (the previous phone call was $5k).
I guess my questions is this.......in order to get the 0% is it really MANDATORY that I buy Gap and an extended warranty? I feel like they aren't being totally truthful with me. The rate yesterday morning started out at 12% and now it's 0%??? I HATE not being able to trust sales guys! UGH!
Any advise?
No one here can give you THE TRUTH. We do not know what state you are in, nor do we have the deal in front of us.
Car deals are controlled by very specific state laws- and I have no idea what state you are in. In your state they may or may not be able to make financing contingent on it- I can see GAP since it is an insurance product for the finance company on your car like PMI for a house. The warranty I am a little less believable on (since you the customer have to live up the preventative maintenence to ge tthe warranty coverage- but as long as it is not complete and utter unnecessary party products like Lojack they are forcing you to buy I can see them making financing contingent
but you can:
1-Call Ally yourself and ask them. Kinda simple huh
2-Search for Cheap GAP yourself from a third party and try to bring your own to the deal
3-Ask for a price reduction in the charged cost of GAP and the Warranty and be ready to walk away if you do not get it.
4- Call your State Attorney General and ask if it is legal.
gap coverage is a good thing, and its not like you are putting 10K down so I would not be upset at it
ETA:
You can also ask them how much down is required to not need GAP. Be prepared for a 20%-30% of transaction
