Financing Issues throwing RED Flags

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RamRoy

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Make it work to your advantage. If you have to go through the hassle, have them take more off or tell them to come get it and deliver your trade-in.
 

adrianp89

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Someone said take the deal and re-finance - that is the way to do it. You can probably get 2-3% through a credit union.

Lol @ people giving him **** for his payment.

I could pay $1200 a month for a 1500. Guess what? It would be paid off in 3 years - while your still paying for 8 years.
 

chrisbh17

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they trained me to just lie I found a better way I just set up an appointment in 6 months to Help them convert their financing half the time I got to do the refi anyways otherwise I got them a simple paper with their 10 day payoff to take to their bank and they were happy.

You were a salesman?

The 6 month bs came from the finance guy. Even funnier was the fact that I talked to 2 different finance guys and the actual finance manager and all 3 of them gave me different answers about how long before I can pay it off.

The finance MANAGER was the one that said "just pay it off the next day".
When I asked why Ive been told 3 and 6 months later his answer was "yeah, thats just how other dealers do it". He had NO answer when I told him it was his own finance guys that gave me those other numbers.
 

baum

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You were a salesman?

The 6 month bs came from the finance guy. Even funnier was the fact that I talked to 2 different finance guys and the actual finance manager and all 3 of them gave me different answers about how long before I can pay it off.

The finance MANAGER was the one that said "just pay it off the next day".
When I asked why Ive been told 3 and 6 months later his answer was "yeah, thats just how other dealers do it". He had NO answer when I told him it was his own finance guys that gave me those other numbers.

Most dealers try and pressure for 6 months as that is how long the loan has to be open for the dealer to get their commission from a bank.

OP i would agree with most take the new discounted deal and re-fi asap. Let the dealership get f*cked by you since they did it to you.

In some states (im in Mn and that being one of them) a dealer can mark up a apr based on peoples credit up to 2% from what the bank is really selling it them for. Then the dealer gets that extra 2% as their commission. Now if you have the credit to back up a good rate you can always negotiate that rate with a dealer and they can do a buy-sell where you get it for the exact same rate they do and thy just get a flat fee from the bank.

But yes they can not do a damn thing to you if you pay it off early or re-fi even if it was the next day!
 

Trekker

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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!

Dealers don't make that much on stock trucks... Dealers aren't always out to screw you. Dealers do help people out some times. I know for a fact that Ford dealers usually have a set aside amount that they will use to help out customer in bad situations such as a blown motor that isn't too far out of warranty and what not. They do want to help people, but they are a business. If that means they have to take a hit on one truck and keep someone happy to keep good PR they will.
 

Stu4x4

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In all my dealings with cars and dealerships I have never experienced a dealer that "wants to help the buyer". When I bought my current ram, after all the negotiations for price were done (I won't discuss monthly payments with them until until I get the actual $ amount settled to where I want it) they come back with the financing offer of 7.99%. They assure me that's the best my credit score will get me anywhere, so I told them no thanks, I'll get my own financing, magically 2 mins later they come back and say 2.49%, I told them I think I can do better, plus im not happy about the tires on the truck as I hunt and don't want to buy a new truck just to have to go buy off road tires immediately after. They agree to cut me a check for $1000 to buy new tires, on top of the lower interest, and the deal we agreed to earlier... And I probably still got screwed somehow. These dealers make plenty off selling cars, they are definitely not in the business of helping people and will take advantage of people's lack of knowledge without losing any sleep. If they were all about helping people there wouldn't be as many dealerships as there are and they wouldn't have millions in inventory sitting on their lots.

To the OP, I don't know what to tell you to do, I can only say go with what you are comfortable with, if you prefer the original agreement then stick with it, I'm pretty sure they can't back out of it now, if not take the new deal and hope to refi on your own. Or take it back tell them you don't agree to the new terms and want out, chalk it up as a learning experience and go to another dealer and start from scratch. Maybe they will even sweeten the new deal if you tell them you are planning to walk, the way I see it they are the ones who are stuck, it's probably in their best interest to get you a deal your happy with. I'm sure they can probably even lower that rate.

Sent from my SM-G950U using Tapatalk
 

mjf6175

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I have a pretty good idea of what caused Chrysler Financial to not accept the final deal. The OP gives a clue to it. The truck was purchased with numerous add-ons. Lift, exhaust, extended warranty, etc, etc. All of these items were added into the purchase price and into the amount he borrowed. Most lending institutions have a CAP on the amount financed on a vehicle, or "Loan to Value". I will use an example with random numbers. The MSRP of OP's truck is $40K and all the add-ons were another $10. Lenders will have a limit on how much they will finance on the vehicle based on the MSRP which does NOT include the add-on options that the dealer sold to him. The OP probably had a loan amount that exceeded whatever limit percentage ( or ratio) of the MSRP that Chrysler allows. So if Chrysler allows only 80% then the loan has a limit of $32K.

Now how did he first get approved? Because at the initial sale the OP's credit was good enough to borrow $XX,***. So he was pre-qpproved. But when the paperwork hit Chrysler Financial they got to see the MSRP of the vehicle and applied their percentage limitation which I think got exceeded.

Another way to look at this is something entirely different but gives you an idea how this works. You own a vehicle that you still owe $20K on but want to buy a new car and trade it in on it. The dealer will give you $14K, so you are upside down on your old car. The dealer will of course offer to roll that into your purchase price but he has to find a lender that will finance an amount that is equal to or maybe greater than the MSRP of your new car. To get a financial institution to do this will of course mean a higher percentage rate. Which is exactly happened here. Chrysler financial bounced the deal because it exceeded the percentage ratio and the dealer looked for a lender that had a higher MSRP percentage ratio which then resulted in a higher interest rate.

I hate to say this but the only way the dealer rolled back $8k is more than likely because he had a significant markup percentage in the deal plus like others said the dealer probably used rebates that were not available because the OP used Chrysler Financial.

If I were the OP I would immediately check and see if he could get another loan on his vehicle which has a lower interest rate than the 4.9% while ensuring there is no pre-payment penalty on the 4.9% loan now being offered by the dealer.
 

sandawilliams

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I have a pretty good idea of what caused Chrysler Financial to not accept the final deal. The OP gives a clue to it. The truck was purchased with numerous add-ons. Lift, exhaust, extended warranty, etc, etc. All of these items were added into the purchase price and into the amount he borrowed. Most lending institutions have a CAP on the amount financed on a vehicle, or "Loan to Value". I will use an example with random numbers. The MSRP of OP's truck is $40K and all the add-ons were another $10. Lenders will have a limit on how much they will finance on the vehicle based on the MSRP which does NOT include the add-on options that the dealer sold to him. The OP probably had a loan amount that exceeded whatever limit percentage ( or ratio) of the MSRP that Chrysler allows. So if Chrysler allows only 80% then the loan has a limit of $32K.

Now how did he first get approved? Because at the initial sale the OP's credit was good enough to borrow $XX,***. So he was pre-qpproved. But when the paperwork hit Chrysler Financial they got to see the MSRP of the vehicle and applied their percentage limitation which I think got exceeded.

Another way to look at this is something entirely different but gives you an idea how this works. You own a vehicle that you still owe $20K on but want to buy a new car and trade it in on it. The dealer will give you $14K, so you are upside down on your old car. The dealer will of course offer to roll that into your purchase price but he has to find a lender that will finance an amount that is equal to or maybe greater than the MSRP of your new car. To get a financial institution to do this will of course mean a higher percentage rate. Which is exactly happened here. Chrysler financial bounced the deal because it exceeded the percentage ratio and the dealer looked for a lender that had a higher MSRP percentage ratio which then resulted in a higher interest rate.

I hate to say this but the only way the dealer rolled back $8k is more than likely because he had a significant markup percentage in the deal plus like others said the dealer probably used rebates that were not available because the OP used Chrysler Financial.

If I were the OP I would immediately check and see if he could get another loan on his vehicle which has a lower interest rate than the 4.9% while ensuring there is no pre-payment penalty on the 4.9% loan now being offered by the dealer.

I think a pre-payment penalty on loans was outlawed many years ago. I have taken advantage of incentives on vehicles if financed through Chrysler. I would get the $1000.00 off at sale, after negotiating the buy, and pay the loan in full at the first payment due date.
 

mjf6175

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I think a pre-payment penalty on loans was outlawed many years ago. I have taken advantage of incentives on vehicles if financed through Chrysler. I would get the $1000.00 off at sale, after negotiating the buy, and pay the loan in full at the first payment due date.

I just wanted to ensure that the OP reads the new loan agreement he now has from the dealer and that it does not contain any hidden surprises. He has the ability to lower the principal by $8k and get a lower rate loan, saving himself a significant amount..
 

malatu

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You might consider taking the new terms and as mentioned before, refinance the vehicle with a third party at a lower rate. I would take a look at an online finance company called LightStream. It's a subsidiary of Sun Trust.

I got pre approved for a 30K loan at 1.84% before i even identified the exact truck I was going to purchase (this was 12 months ago). The process took a couple of hours and is done online. I did have to verify money in a savings account and had to scan and email them a copy of my most recent statement. This added some extra time to the process. Get this, they didn't even want the truck as collateral! In essence, the loan would have been a personal loan if I used it. I ended up using the dealership financing because they offered me a lower rate. I don't know what the rates are today and I have a pretty good credit history so the rate may be different. A friend who told me about this company, and had gotten the same deal a couple of months earlier on a used car! He is an older friend of mine who I suspect has a pretty good credit history too. It was a good feeling walking into a dealership knowing I was pre-approved for 30K of financing at 1.84%

Also, with the lowering of your principal amount by 8 K, would that allow you to drop the gap insurance? You could put that additional monthly savings towards the principal every month to continually mitigate the need for gap insurance. You'd have to run the number to see if that made sense. Just a thought. But it's all about positioning!

Good luck and keep us posted!
 

bryan28

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Most dealers try and pressure for 6 months as that is how long the loan has to be open for the dealer to get their commission from a bank.

But yes they can not do a damn thing to you if you pay it off early or re-fi even if it was the next day!

I never knew this was the reason. Both my sales lady and finance manager said that ideally they'd like you to wait 6 months but that I could pay it off anytime without penalty.
 
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jjyergler

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Anytime someone tries to back out of a signed deal, they're up to no good. It might be as simple as the finance guy is getting a kickback.

I'd walk away. There's no way that Chrysler suddenly doesn't want to do it. He's lying to you. Do you know any lawyers? I bet what he's doing is illegal. It's definitely unethical.
 

chrism1367

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Not saying you are wrong in this case but last year when I bought my ram it was at like 3.5% through credit union, I did all the loan signing at the dealer, and a few days later they called me back to resign for the loan because something got messed up and I should have got 2.9, which is what I have now. Just saying not a 100 percent is dealer trying to slip one past a customer. Although the salesman when adding up trade in and tax and everything "mistakenly" added wrong and it was a 1000 dollars more than it should have been. I should have said sorry im leaving, and prob could have got some off the price oh well.
 

Flip-er

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reminds me of a fast one a salesmen tried on me.
He added in 299.00 for 6 oil changes and tire rotations, I said that soulds greatr
BUT WAIT!!!!!!!!!!!!
on the table was a dealer sign that said 199.99
So I said you mean this one here on table?
what could he say.
then he said for 399.99 I could ger wheel locks, I said aww no thanks, when I bought my truck in 2013 they came free, BUT for a hundred bucks I will sell them to you,
He said sorry, and dropped them to 100 bucks, I ended up telling him where to go and walked away.A few days later the manager of dealer called me, asked what happened, so I explained, he said sorry BUT he will work with me,
I said you tried to **** 2 times with things, I wouldn't take your truck for a dollar, hung up on them.
 
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