r2kmedia

just a question to anyone who had used a dealers financing when buying their car.
my mom went to a dealer this weekend, and saw the acura tl she wanted, she goes in to the finance mgrs office, and he has the contract all typed up, she tells him she wants to check with her credit union about interest rates because she thinks she can get a lower one, but the finance mgr assures her that he already went to her credit union and the lowest rate he could get was at american honda.

well, she signs and drives off with the car, but goes to the bank to make a deposit anyway, and talk to her banker, the banker says that the bank can get her a interest rate at least 2% points lower than what she signed for, and that she could return the car that same day, and say she is going through them.

is that legal to do?

Slimey

Tell her to hit herself upside the head several times like this It's common practice for outright lies to occur during a transaction of this type. Nothing you can do legally, in the end it's your word against theirs, and they'll say they gave you ample opportunity to seek financing elsewhere.

She can see what she can do about re-financing the car with her bank. She can also go back to the dealership and see if they'll re-do the financing, but I doubt it.

Obvoiusly she's never heard the expression that the Finance Manager is also called the Lie-nance Manager!

Basic rule of large purchases: CAVEAT EMPTOR!! (buyer beware if you don't recognize latin expressions) SALESMEN WILL LIE (OR BEND THE TRUTH) TO YOU. THIS IS ONE OF THE MANY RULES OF LIFE and she just learned the lesson a hard way. The finance is a salesman, just like the guys that walk around the lot. He sells loans & leases, not cars, and made a good margin on this purchase.

Oh well. We've all been there. Life goes on.

For a good explanation of the car buying experience see http://www.carbuyingtips.com

Pure Adrenaline

iTrader: (2)

Depends on the state, but you can return cars, just like returning a TV within 14 days. In some states, it's 3 days. Others, don't know. Check.

You can always refinance, too. You'll have to pay closing costs and whatnot again, but if the lower interest rate justifies that, then go for it.

kensteele

Slimey, that is so so true.

Anyway your Mom can pay off her brand new loan and then seek new financing thru her credit union at the new rate. Everybody has a cellphone. One phone call is all that was needed, 15 minutes before signing with American Honda.

Check your laws in Virigina, they might have something on the book about a contract is consider fully executed after close of business on that day or midnight or something but a car is personal property and chances are there is NO cooling off period, don't believe it, there is nothing in the law permitting you to return cars not even after the FIRST day. Only the dealership can make-up such a rule and they often have penalties, minimum mileage requirements, and other hidden fees. If you could return cars like that, dealership wouldn't sell half as many cars, cause nearly everybody has buyer's remourse....husband brings home sports car and wifey says take it back.

The good new is that a difference of 2% is not enough to commit suicide over.

r2kmedia

she said in her contract it said the no cooling off period was noted in it contract. but she also told me something i didnt know about, that part of the deal was she was supposed to give them a total down payment of 2500.00, which she had not given them yet.

she wound up going to the dealership last night, and returned the car, and picked up her old car. i'll keep you guys updated on how that unfolds.

Slimey

Well, if the deal ain't closed yet, then it ain't closed. She should tell them that she'd be happy to finance with them at the rate that she can get at her bank/CU, or take her financing business directly to the CU, or bail on the deal altogether.

Hopefully, she caught them at their own game before closure.

Refinancing car loans usually have no fees/closing costs. Look it up on http://www.eloan.com or http://www.peoplefirst.com

Read through the carbuyingtip.com website that I linked before. It really has a lot of good advice.

kensteele

Ah, the very key important piece of any contract; it's called consideration. In this case, the money. We all sign contracts that are contingent on "getting the money" or "getting the financing". If you sign the deal and the bank won't finance you, of course the dealer doesn't force you to find the money somewhere else, somehow. She got lucky.

So I'm not a lawyer (I did take law classes in grad school) so our resident lawyer Chief might have to correct me, but this is a good website on contracts.

Read about the Cooling-Off Rule and how it does not apply to traditional car sales.

chef chris

Good deal...Tell her to shop someplace else this time.

r2kmedia

so by her picking up her old car, and giving them back theirs, and not fulfilling the contract in regards to the down payment, she is free to finance through her bank??

thanks everyone for the input and advice..

louisn

Did the dealer accept the car back or did you do the old switcheroo without the dealer's knowledge?

r2kmedia

she went and told the salesman and took her keys back. they knew what she was doing.

chef chris

Good for her...

She's very lucky though...I hear people complaining all the time about the same thing & of course, buyers remourse...in DE they can't do a thing about it. Since I'm at the bank, that's the first place they call...sometimes within 24 hours & I RARELY see a dealer take a contract back.