Zodiac

Hi Guys,
In stead of a million complaints about paragon Acura in this forum, I bought my WDP 06 TL from them ( cuz my name is Mr. Stupid).. I signed all the docs and took my car like three weeks ago. And now, the freaking salesman just called and told me , he couldn't get the loan from the bank... wtf ? I agree that it is tough to get the loan for me cuz I have so much upside down for changing five cars in three years.. But I had signed for the financing paper and everything and only now he tells me that I couldn't get the loan?. Is that reasonable? And now, he told me that the only options are , either get the loan from my own bank or put some more money down.. So, on monday, I might just get the loan from my credit union and my question is " can i redo my bill of sale ? " Cuz, when i signed for it, they did the 6 years financing and the manager told me that, since there is too much upside down, the honda financing corp needs the extended warranty to ensure that I will take care of my car ( which is totally BS ), anyway I took it that day since I was extremely excited just to get the car.. But now, if I have to supply my own financing, I want to take out my warranty cuz it doesn't make sense anymore.. Any plus,, they should give me a free Aspec Bodyit.. What do u guys think ? Need advice asap.. Thanks guys.. I might see u guys at DC meeting if I can persuade my wife... Take care and pls pls, give me some advice.

leedogg

hmmm. I'd make sure you can get a loan first, before worrying about all that other stuff.

octl

I have heard more than a few times of people having to return the car, because the dealer was not able to secure financing... but I have never heard of the bank requiring the buyer to buy an extended warranty on a brand new car!! Sounds very fishy to me.

If they have such a bad reputation in the first place, and now you have an opportunity to cancel out the whole deal, then DO IT! Don't forget there are thousands of Acura TL's out there that can have your name on it, and it doesn't have to be this one.

Zodiac

Ya, actually, the price itself is not bad.. Cuz I got my TL for 30500 and they took my nissan Armada ( the brownish color ) 2004 and about 30000 miles for 22500. So, like u guys said, I will try to secure the loan from my credit union.. And that will make me happier cuz, after I took my car, I kept thinking about why I had to pay 9% apr for AHFC while I could get from my credit union for about 5% fixed rate and why I took the extended warranty.. Sometimes, u know, when I want something, I lose all my logic for that moment and only after that I regret about it. And now, I guess, it will be better, cuz i will hav a good price with a good apr.. OK. will update on Monday or latest Tuesday. Take care guys and thx

IIIII

Im pretty sure you signed a "Delivery Agreement" upon doing the paper work for your car.


It states.

1. _________ Dealership is delivering this vehilcle based on credit information received from the customer, not actual approval of the loan application.

2. Ownership of the vehicle is retained by _________ Dealership unitl the assignment of the finances contract is accepted by the lending institution.

3. The customer agrees to pay the differences (if any) on the pay-off of the traded-in vehicle if it exceeds the amount stated on the contract.

4. The customer agrees to provide funds to pay in full and satisfy any check written and included in vehicle deal.

etc, etc, etc.



Sorry to say but they duped you about the extended warranty.....so they will have trouble approving you for the loan, but want to tack on more money onto your loan to get you approved?!?!??!?


Return the car back to them and call it a day. Find another dealership to work with.

pimpin-tl

www.capitaloneautofinance.com allows like 130% for a loan. Meaning 30% over the total of the loan. If you are upside down that bad they can take you without any more money down. But you shouldn't have gotten yourself into that mess in the first place. But 3 weeks usually is way to long to know. Dealer usually knows the next day or so.

fast-tl

Sounds like a scam...seriously. See #1. I got taken on the warranty (the lender "required" it, but I didn't know better at the time.)
See this site to see which scam applies here.
http://www.carbuyingtips.com/scams.htm

In my case I don't recall ever seeing any of the wording as in post 5 above: https://acurazine.com/forums/showpos...19&postcount=5

mkim12180

They try to sell you the extended warranty b/c..........

You do have to pay more for it, yes but you're getting peace of mind, that's the benefit for you the consumer.

What you don't know is that that extra 1000+ or whatever it is for the extended warranty is added onto the cost of the vehicle and subject to interest charges in turn the dealer makes more $$$$

pilozm

If you have to get your own loan thru a credit union, will you have to pay a higher rate because the car is no longer considered new??? Usually, used car loans have a higher rate, compared to new car loans.

I got my TL at paragon also. I had minor problems during the purchase, but nothing near your situation. Good luck.

KJSmitty

I have actually had several dealer loans that I refinanced anywhere from one to 12 months later and still received "new-car" financing. All depends on the bank/CU. With Zodiac's predicimate, unfortunately it will be his credit status and debt ratio that will manipulate his interest rate .....

streese

Or, renegotiate the deal. Tell them you don't want the warranty, and you want another $1,000 off the price due to the hassle. If they say no, then tell them you are taking YOUR financing elsewhere.


I hate these selling tactics.

Ernie Golfs

If the warrenty is new, you should be able to call Honda and turn it in for a refund. Since you haven't used it, Honda Care should give you back full purchase price or close to it! Only bad thing is it will still be on the TL loan. I sold my 2006 Subaru, 8 months old, back to Subaru. Subaru refunded full purchase price of extended warrenty $1400.

Boulder GT3

You're a financial train wreck. Give them the TL back and buy a used Accord until you can afford something else. If it's hard for you to get credit you shouldn't have it. And you fell for the warranty too.

So the advice is; get a cheaper car, go to a personal finance class and stop speaking ghetto.

DMZ

Sorry to hear you're getting jerked around Zodiac, but Paragon and Acura of Brooklyn have the worst reputations of all the 260 U.S. Acura dealers.

Remember next time that in this forum, SEARCH is your friend.

Jesstzn

Up here in CanaDUH we can't take the car off the lot until the financing is in place and approved and in most cases proof of insurance in place.


Many dealers try and pressure you on the extended and in some cases a security tracing package that covers your deductable if the car is stolen..

One thing I learned a long time ago ... a salesman "has" to sell cars .. you don't have to buy them to make a living .. so your in the drivers seat .. tell them to stuff the packages ...

deke

hahahahaha im sorry but you've been taken for a ride and did 0 research into auto buying and fianancing

MR1

Sorry but you should get financing before you try to make the purchase. The dealer is trying to take advantage of your desire to have a new car even if you shouldn't have one.The only reason lender says no is because your are a bad risk due to poor payment history or too much debt. If you can't get financing at a reasonable rate, give the car back and get your trade back.

While the TL is nice its' still just transportation. Why not take a breath and get your finances together before another money losing big $ purchase? As someone else said, why not sell the old car outright and find a nice, less expensive used car for now? If you will be embarrased by giving the car back, tell everyone that you were having trouble with it and it was just too much hassle.

Digits

MR1

One more thing... if you have to finance for 72 months you can't really afford the darn car anyway. The long financing and desire to have a new car every few years guarantees that you will always be upside down and owned by the bank. A great plan for the dealers and banks but really sucks for you.

Peters

I must say I've never heard of a dealer letting someone take posession of the car without having the financing secured and the car paid for, not in Canada anyway. Consumer credit sure is at its creative peak in the US. Zodiac, I don't know what you mean by "upside down" (residual deficits I assume) but financing a car over six years may not be for you. Leasing it may be an option if the residuals are high enough resulting in lower payments, but why not buy a used one and save some money.

SpecialFX

Finally some sound financial advice. Don't get sucked into the "gotta have a new car" BS. As much as I enjoy a new car there is no car out there that is worth fiancial ruin (except an F430 Spider). Pay down the debt first. Once you fall into this cycle it's almost impossible to get out. I hate to see people get themselves into trouble because society tells them they "need" a new car, boat, larger house, etc.

Zodiac

heheeh. Now. everything worked out. Had talked with credit union and they will work it out cuz all the cars are financed through them. So, I will just put 10000 downpayment cuz the house prices are going down anyway. ( was thinking about buying a house next month. But will postpone it till next January ).. And for the car price, I had talked with the manager at Paragon, and he told me that he would do a new bill of sale and would totally take out my extended warranty ( don't really know, but he said for 72 months financing. extended warranty is mandatory, maybe a BS). And for credit union, they don't really check credit history ( as long as I am current with all the bills at this month ) and the rate is fixed for everybody , which is 6% fixed. Our Credit Union is so flexible cuz all of us are international staffs ( since I work for the United Nations ) and they take out their payments as soon as I get my salary as a direct deposit anyway ). So, I might not have anything to eat for a few days, but for sure , they will get their payments on time , lol. And my wife is so much in love with the car anyway, so that, now, I am not having a hard time asking for much much higher downpayment. Did scare her a bit about losing our deposit money if we had to turn in the car though . :P .. She is the boss at my house.. We had agreed just to buy a corolla since I barely stay in US anyway, but now, she has no complaint about getting a TL. So, I hope to see you guys in DC meeting.

Maybe I was too upset on Sunday , so that I got a flu on monday..

NSXNEXT

iTrader: (2)

What did it cost you to get out of your old vehicle (Armada?)

Zodiac

Hi, NSXNEXT,
I bought that Armada in 2005 Jan as a new 2004 Armada LE, 4x4 fully loaded with navi and dvd for 33000.. First, I was quite happy driving a big SUV esp at winter times but later, as the gas prices have gone up, I was quite upset with the gas fills up. So, I told my wife that it is drinking too much gas and now, since I might have to go to mission to Africa, she needs a small car to drive. So, I went to paragon dealer and they gave me the KBB price. And I really want to apologize to some people about me saying ghetto, cuz I guess , I was a bit emotional at that time.. I am not really like that cuz my mom had taught me better.. :P Only she didn't tell me how to manage my money. Like my dad always say "Well, I was happy since you've got married thinking you will now have somebody who will control you, but now, you still do whatever you want".. So, thank you everybody for all the advices and I really think you guys as my big brothers. So, now, how much doest that supercharger cost ?.. heheheheh. just kidding.. Take care for now guys.

deke

Nothing but sound financing coming from zodiac. I wish to subscribe to your quarterly newsletter on how to manage my monies.

CobraGuy

Boy I guess. That's a bankruptcy waiting to happen. He needs to get his priorities in order. I can't believe anyone would take a car over a home.

MR1

Glad everything worked out to your satisfaction. Zodiac, a little off topic but can we assume that English is not your first language?

Zodiac

Yup, a bit off topic but ya, I am an asian guy. Moved here five years ago becuz of my work and still moving a lot... That's why I m kind of thinking twice to buy a house here ( my job is paying half the rent anyway). Cuz, I want to stay in Geneva becuz our office headquarter is there and it is a nice place to live... Or Japan, if i can apply for it.. But then again,, I will surely buy a Vspec skyline and will end up in this cycle again.. Haahaahah.. But like I said,, our Credit Union is great.. They gave me two loans, for about 65Gs for now, cuz I have to close this deal and only after this, the dealer will pay off for my previous car.. ( and the gal from my CU told me to keep the downpayment as well for home buying ).. They said it is not that my credit history is bad, but just that I don't have the established history and don't hav a stable resident.. For them, they don't care cuz they are giving loans all over the world in which some countries don't even hav credit histories ( but no matter where I go, I always have an account in UNFCU, and they will withdraw the fund from there every payday).. Actually, even though I have upside down, it is not that much ( about 6000 ) and the monthly payments are about the same or ( even lowered when I bought the GS300 from audi S4 ) except that the term always go back to 60 months. Since I m only 26, my theory is enjoy the life, work like a dog but drive nice cars.. Keeps me focused , i guess... Thanks guys for all the input.

BustedJack

Zodiac,
I am not going to read all the comments posted by the members. It seems like your dealership lured you into buying the extended warranty. I have never heard of any financial loan company requiring an extended warranty on a vehicle. Plus the fact that you're paying 9%!? I was only paying 3.9% and I thought mine was bad! If I were you, I would simply walk into a bank and get a personal loan.

BustedJack

Ok, I just read your entire thread. It seems like...

#1 - You need to get your priority straight. If you plan to buy both a house and a car. A house should always come first. Reason for that? House appreciates while car goes the opposit way. A house 5 years from now will worth either the same or more than what you originally bought for. A car, 5 years from now? Is nothing but an used car with milage.
#2 - No one in this world should finance a vehicle for 72 months. I don't believe anyone should even finance a car for 60 months. My take is, if you can't afford a 36 months car payment, you shouldn't buy that car at all. Get an used car that is fairly cheap and save up for ones you really want.
#3 - I have always thought asians are great financial planners.... you bought a 2004 Armada in January 2005 for $33k and traded it in 9/2006 for 22k???? holy 11k loss! You are crazy my friend. You need a financial planner.

please note, what I said above are based on my opinion. I'm not here to be rude or rip you apart, so don't take it the wrong way.

pimpin-tl

We don't need any type of racial comments please. Your asian comment was uncalled for. So basically your saying everyone else who is not asian is stupid financially right?

I can tell you 90% of the people in the world today do a 60 month or 72 month loan.

fast-tl

Yeah, way to stereotype, AcuraDriver2006. By that theory, there should be ZERO poverty in Asian countries because everyone is well off, right?

I have thus far stayed away from 72 month loans because I know that I want a new car more often than that. Good luck Zodiac; check out www.daveramsey.com!

CobraGuy

Wow.

mrodriques

I am not sure that your numbers are accurate, but if they are the reason is that more and more people are practicing financial irresponsibility, that is getting someting bewcause the "have to have it", as opposed to "can I afford it". One of the reasons that we, as a society, are in a financial nose-dive!

mavz44

Allow me to interrupt. A 60-72 month loan is not uncommon. Like someone else said in this thread, and I would agree, about 90% (in another words, a lot of people) of people finance a car for 60-72 months. So it sounds like you just make a lot of $, and thinks it should be that way for everyone, but the truth is not everyone makes enough money to finance a $34,000 car over 36months, make a house payment, another car payment, and whatever else bills they have during the month. It doesn't mean they can't afford it, but would rather not strap themselves tight and are okay with paying a little more interest over the life of the loan.

As far as Zodiac goes, sounds like he's on his way off the deep end. It's one thing to cut your losses, but he's cutting too much off! The obvious advice is to take a breather and get things in order before jumping into more debt.

NSXNEXT

iTrader: (2)

If they're strapped, THEY CAN'T AFFORD IT.... Could I afford to take out a $750,000 mortgage? Sure, would I be able to eat? So I CAN'T AFFORD IT.

Bottom line 72 month financing is just another way for banks to lure people into vehicles they obviously cannot afford. In many cases, you will be upside down on your loan (owe more than the vehicle is worth). Not a smart decision.

noah82

You could always do what I did...buy the house first and then buy the TL on your home equity line of credit.

DAROCK

hmm, no wonder the United Nations is such a money pit.

Boulder GT3

Screw 72 months, let's go for 360 months. I appreciate that the interest % might be lower but hooking a rapidly depreciating asset to home equity is probably not a good idea. I'd rather go without such an expensive car.

Zodiac

Just came back to work and really surprised to see all the comments... ( I m still having a flu..).. Ya. u guys are totally right and I really really appreciate for all the advices.. It is true that 72 months financing sux and I will try to pay off my loan in 3 years or at the most 4 years... Just to make things clear, now, with my UNFCU, I am back to 5 years loan .. Even now, I m so sick but have to come both sat and sun to work for a project.. A bit tough and I think of it as two months car payment is on the way.. Heehehe. not a bad way to suffer this weekend for two months peace of mind....I was even planning to come to Brookly Acura Meeting as well and already printed out the direction but most likely I will just work OT as well.. And I think regarding the financing monthly terms, everybody has his/her own opinions cuz sometimes, you have some investments that can earn way more than 6 or 7%.. so, i guess for those cases, even 6 years financing makes sense..