Dealer trying to screw me on Financing

[RJNavarrete]

Long story short, when I bought my truck, the dealer told me I had 5 business days to secure my own financing or else they'd book it with GM Financial. My FICO is at 760, so I expected at least a competitive rate from them. They insisted that the only offer they could make was to go through GM at 4.29%. They presented absolutely no other bank options (due to it being 11 pm they stated). Absolutely insane on a new vehicle with my FICO. Either way, they mentioned that this was called "option financing" or something similar. Again, I reiterated: I sign the papers today, go get financing tomorrow through my bank, fax you the approval letter, and you take care of ensuring I'm not paying a ludicrous rate? "Yes. Absolutely."

 

Now they're saying "oh, the loan funded and we can't do anything about it."

 

I'm still within the 5 days, but they're not willing to work with me. What can I do? What options do I have?

[diyer2]

If you're not happy and it sounds that way, walk away. Get pre - financed and start over.

[Colliewood]

Go to your bank and see if they can beat it. If so, they pay off your loan and become lien holder and you get a better rate.

[dagwood2001]

i got .95% through GM Financial, Fico Auto Score 713 (different from overall FICO, usually lower). But shouldn't be 35 points lower.

 

Also in many states, for a purchase of a certain size, and I have to believe a full sized pick up qualifies, you have a 3 day window to back out of the deal.

 

Simply put, this sounds like one of the oldest dealer tricks in the book. Get financing for 1-2%, charge you 4.3%, and pocket the difference on a monthly basis. Doesn't sound like a ton, but aside from being dirty pool all of the 15$ spreads they collect from hundreds of leases add up fast. Not saying this is what they are doing but it sure sounds like it.

 

Walk. Unless this is otherwise the deal of a lifetime.......

[Jernik]

Look over the paperwork VERY carefully. If nothing obvious tells you how to get out, perhaps pay a lawyer to review and advise - would be cheaper than 5% on a new truck over the life of the loan.

 

Next time secure financing through your bank first. IF the dealer can beat it, you can use their financing. If not, just use your bank as planned. NEVER, EVER, EVER, EVER, EVER trust that anyone selling anything (dealer or not) has your best interest in mind. Anything financial, protect yourself and get it in writing upfront. People's words aren't worth the bad breath they're carried on these days.

 

Hope all works out for you. Good luck!

[bwc3030]

best option is to save up some money and pay cash for it, then no need to worry about financing. That's what I did , much less stressful.

[dbcooper748]

In my state, u can refinance at your own bank within one calendar year of purchase and still qualify for new car interest rates... i used they gm financing initially as it qualified me for more rebates but at a higher rate than my credit union but the catch was, i had to stay financed with them for at least 3 months. The dealer even cut me a check for the difference of the extra cost of 3 months at their rate. I refinanced after 3 months with my credit union at 1.9%. Short story-long, go secure your own financing for better rate now.

[Doobs41378]

In my state, u can refinance at your own bank within one calendar year of purchase and still qualify for new car interest rates... i used they gm financing initially as it qualified me for more rebates but at a higher rate than my credit union but the catch was, i had to stay financed with them for at least 3 months. The dealer even cut me a check for the difference of the extra cost of 3 months at their rate. I refinanced after 3 months with my credit union at 1.9%. Short story-long, go secure your own financing for better rate now.

This is exactly what I did. The dealer told me he could give me 4k more for my trade in if I financed through them as they get a kickback from the bank. He said just pay it 3 months and then refinance. That is what I did and my rate is now 1.99% and my FICO is 804 last I checked.

best option is to save up some money and pay cash for it, then no need to worry about financing. That's what I did , much less stressful.

Thanks for adding nothing of value to the OP question.

[chevy15]

any reputable dealer is going to give you at least a week to change your mind...it may be different from state to state, but I live in MA and my dealer told me I could drive it for 14 days( I think) and if I didn't like it, I could return it no questions asked...pretty sure they'd try to pressure me into keeping it but I have to believe you have a certain amount of time to change your mind.

 

I bought a used Wrangler over the winter...only financed $2500...there were some minor issues with the Jeep that I wanted fixed before I picked it up...about three weeks passed and I got a call from my finance company asking some questions about the loan...in passing I said I had not even taken possession of the Jeep yet...at that point they told me they could not legally send me a payment until I physically took possession of the vehicle.

 

I guess my point is I think the dealer would stand no chance in hell in a court of law if you just walked away at this point or demanded the loan be ripped up and refunded any money you may have put down as a down payment.

[jamin87ss]

ya get after this, I had a 780 at time of purchase, 2.99 for 84,1.99 if I went 72, I am currently on pace to pay it off in just under 6 years, maybe 5.5

[2016 Sierra Owner]

You don't have to wait any time to refinance. Once you get the account number from the loan company you can call for a payoff. Even if you have not made the 1st payment. The finance guy will tell you to wait 90 days before paying it off but, this is only so they get their kickback from the loan company. I did my loan that way. If they screw you then why wait and let them get what they want. When I called my bank to get the refinance loan she laughed and the part when I said i had to wait 90 days and told me she loves when customers tell her that is what the dealer said.

[tnchevy]

If the financing does not sound right then walk! I save up and pay cash for everything I own but the last time I borrowed money it was on my 2002 model (paid half cash and borrowed the other half). The dealership said they couldn't do better than 4% so I walked out the door and they quickly changed their mind to 1.99% and that was back in 2002.

[MikeNH]

Never, ever sign anything until the deal is in order. Hopefully your bank or other institution can make a refinancing easy.

[bertiman]

Never, ever sign anything until the deal is in order. Hopefully your bank or other institution can make a refinancing easy.

 

 

Words to live by....

[foo.c]

Probably the only thing you can do is refinance with your bank or credit union, and then file a complaint with your state's dealer licensing division and/or the BBB. Maybe call the lender and lodge a complaint too.

 

Dealers get a kickback from the lender if you finance through them, and the higher the interest the higher the kickback. If you hurry up and refinance you can stop that kickback.