Financing Issues throwing RED Flags

So I received an interesting call from my dealership today...

I purchased a 2017 Ram 1500 a week and a half ago in Illinois and drove her home to North Carolina. All the paperwork was signed buttoned up and I have been driving the truck ever since waiting for my tags to get here. When I purchased the truck I was offered, approved for, and signed paperwork for $xx,*** at an interest rate through Chrysler financing of 0.9%.

So my phone rings today (a week and a half into driving the truck) and it is the finance guy that I dealt with in Illinois. He says he has some interesting news. He tells me that Chrysler has decided they no longer wanted to proceed with the 0.9% interest rate with me and that a different option had to be pursued. He says that obviously this isn't my fault and I shouldn't be punished, (which I can assure him I would not have been the one paying in this scenario) but that he has obtained financing for me through another source local to me and that my payments would remain exactly the same, for the same number of months, but the interest rate would become 4.99%, and the principal loan amount would be reduced by around $8,000.

So as long as I'm not paying and more per month and the loan term remains the same length I don't see any issue. In fact if I was to go trade the truck in next week I would immediately owe 8k less on the trucks principal.

He said he would overnight the new paperwork and that I needed to sign immediately and mail it back. This is just such a weird situation and I am trying to make sure I am not having the wool pulled over my eyes or that I am not holding the short end of the stick.

I do not want to mention the dealership as they were pleasurable to work with and in reading their reviews before I bought the truck they seem to have a very good reputation.

Has anyone else ever experienced something like this or have and thoughts they would like to throw into the fire?

That’s a huge jump in apr. you’d be paying a lot of your payment into interest instead of principal. Sounds fishy. I’d call Chrysler and talk to their financing department and find out what’s up.


2012 ram 2500 4x4. 3” lift. 37x13.5x17 toyo mt. Smitty built grill, kenwood radio, bullet liner.

Definitely call Chrysler, did your credit score take a hit from other sources the same day or after, like applying for a loan/credit cards? That might be something to look at, but still they should honor the deal that WAS SIGNED at the finance department.

I got my truck about 6 weeks ago, and I knew my APR would be in a bad spot because I recently had some major hits against me. My credit dropped to around 670 from 720 after applying for credit cards etc. I'm still happy with my purchase, but my APR is 5.99%.

I think I'd tell him tough luck. You already signed the papers. Sounds like he didn't do his part right (according to their thoughts) and is trying to make himself a little kickback. I wouldn't do it.


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I keep trying to be skeptical because this seems so odd and fishy, but I just ran the numbers on an online calculator and it appears that even though the interest rate is much higher, I maintain the head start of what i will actually owe as the principal for a few years before the .9% interest rate catches up but then they just stay neck and neck.

$720 monthly payment?

Is that a solid gold 1500??? Holy hell!

I'm paying $479 month for mine only put down $4,000

well my numbers were off a smidge, it's 700 a month and it isn't a stock Ram. The dealer customizes new vehicles so that you can have them built the way you want while still maintaining the warranty. also the payment includes extended warranty to 150k, gap insurance, and lost key insurance. all in all with the 4.9% i will be financing 49k.

Kepler said:

well my numbers were off a smidge, it's 700 a month and it isn't a stock Ram. The dealer customizes new vehicles so that you can have them built the way you want while still maintaining the warranty. also the payment includes extended warranty to 150k, gap insurance, and lost key insurance. all in all with the 4.9% i will be financing 49k.

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Nice!

Lol I thought it was just a regular Ram 1500.

Philip said:

Nice!

Lol I thought it was just a regular Ram 1500.

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yeah, i probably should have specified that earlier lol. I can see why my pricing seemed so far in left field!

Jesus fckn Christ... 49k for a half ton...

I had this Happen when I was younger and we couldn’t reach an agreement so I took the vehicle back.

If the numbers match up and you are happy then go for it.. you know why they can knock 8k off and still do the deal??... because they are still making plenty of profit... if they weren’t, they would of had to unwind it and had you bring it back and that would of end up costing them more morney.
Gratz on the new truck!

Ratket said:

Jesus fckn Christ... 49k for a half ton...

I had this Happen when I was younger and we couldn’t reach an agreement so I took the vehicle back.

If the numbers match up and you are happy then go for it.. you know why they can knock 8k off and still do the deal??... because they are still making plenty of profit... if they weren’t, they would of had to unwind it and had you bring it back and that would of end up costing them more morney.
Gratz on the new truck!

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Yeah I know they aren’t loosing any money by any means, but I am happy with the truck any everything that is done to it while still being able to keep my warranty. The sport models msrp at 42k. The dealer had installed custom exhaust, 6” pro-comp lift, underlighting, 20” fuel rims, 35” nitto knobbies, HID lighting. I’m not saying I got a steal but I’m happy with it. I don’t anticipate I will ever see another one like it and that makes me happy! Oh well, live and learn I suppose.

Kepler said:

well my numbers were off a smidge, it's 700 a month and it isn't a stock Ram. The dealer customizes new vehicles so that you can have them built the way you want while still maintaining the warranty. also the payment includes extended warranty to 150k, gap insurance, and lost key insurance. all in all with the 4.9% i will be financing 49k.

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Hope that warranty is good..you can get lifetime for 2500 thru chrysler......

I would take the new deal at $8k less principle and then immediately seek out a local credit union and refinance at a lower interest rate. Then you will actually win twice, 1 with reduced initial principle and 2 when you refi with a reduced interest rate!

I was considering the .9% but ended up with 2.66% through another bank. The .9% you don't get the rebates...so it does take longer to catch up as you said.

I would agree with r84boomer...finance it as they said...then go to a local credit union and refinance after a week or two.

Good luck....seems shady though...almost 2 weeks after you're ok'ed for a loan they cancel it? Odd if you ask me.

Based on your numbers they are dropping the balance 8k to make up for the additional interest paid, that is the only way to keep your payment the same. Your paying more in the long run, no way around that, but by dropping the difference off the principal they're taking the loss, and you do not see the difference. The downside is the amount going to principal vs interest is further upside down than you were originally, as you've already said you'll catch that up eventually.

It's called spot delivery. I've fallen victim to it twice. Once returned the vehicle and the other time restructure the loan.

Although unlikely, let's give them benefit of the doubt that they made a mistake and told you you're approved for 0.9% financing, and then Chrysler denied it.

So now they're trying to fix this.

However, maybe they're still getting a kick back from the bank on that higher apr. So although they're reducing your balance by 8k, Maybe, they may get most of it back from bank as a commission on the loan. They wouldn't just give you $8k back for fun, even if it's their mistake.

As others mentioned, try to look for another loan with another provider, while getting that 8k reduction from the dealer. Look for a catch somewhere. Maybe you can't refinance that loan that they're signing you up for... Idk

You're sure it's the Dealer, right? Not an elaborate scam?

I think Kap1 is right. Maybe the factory come out with some super dealer incentive after the fact they can take advantage of ...and the business guy gets 'compt'd' on his finance deals (commission). He might be applying whatever rebates he can and worked the numbers out so ultimately he or the dealer gets a lot more on the financing commission. How long do you plan to keep this truck?

Personally, I wouldn't want to mess with the 20 hours of back/fourth time it's going to take. Tell them you're happy enough with the current deal, and you'll call the state consumer commissioner if you need to (or the local TV station). They can sort it out on their end, I assure you.

Sounds like a nice rig though!

I'm paying $603 for a loaded power wagon, MSRP just over $60k. I put no money down.

$700+ a month for a mall crawler, someone hit their head.... Really hard over and over.

Danno said:

I'm paying $603 for a loaded power wagon, MSRP just over $60k. I put no money down.

$700+ a month for a mall crawler, someone hit their head.... Really hard over and over.

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Ha same could be said for someone paying 60k for a truck.