New Car question...>

[Jacks77]

Hello, I'm new here.

I have a New car question that is nagging me if you could find the time answer. I hope I have this in the right place.

When we bought the new car today, a Dodge Neon SXT, we had an agreement for monthly payments of $313 for 60 months @ 17.9%.

We were told to go into the finacial office to sign the aggreement.

Once there, the man said there would be a slight change in the payment. He said because of our (mine) bad credit in the past the bank insisted we get the special "Service Contract" in addition to the 3 year bumper to bumper warrantee. This would extend it to 7 years which he said the bank wanted in order to give us the loan, (interest rate of 17.9%) This raised the payment from $313 to $361. Iryn was about to cry as she had her heart set on it. The man insisted that we had to or couldn't get the loan to go through. So we did it. Plus the fact that Iryn was going to be late for work and all.
The warrantee is nice and all, covers everything, but man the payments.

Later, I got to thinking that maybe we got scammed into that aggreement.
My question is it legal, and do they have the 3 day law to change your mind that I've vaguely heard of.

This is bothering me a bit...

[Doug Rodrigues]

I don't know if you can cancel the contract. Try calling the local District Attorney's Office and ask them. What the salesman did to you is a typical salesman's trick. He gets a kick-back for the loans he does. Had you walked out of the office to cancel the deal, chances are that the salesman would have come running after you with the last minute "the bank changed their mind" lower interest rate in-hand. Also, most extended warrantes aren't worth the paper they're written on. By the end of the contract, the money you paid for the extended warranty will far surpass any repairs that would have made under "warranty."

You can't trust Lawyers, Politicians, and car salesmen. I hope that this has been a learning experience for you. Don't do it again. Go check out the "Bad Experiences" forum on this web site. Also check-out www.ripoffrevenge.com , www.ripoffreport.com , and the www.badbusinessbureau.com web site for more ideas. Is you car dealer listed on that site?

[EvoZero]

17.9 percent?!?! Man, you got screwed. Get out of that agreement ASAP.

[graphicassult]

Yea man, you got screwed. A service contract shouldn't have anything to do with the bank givin out a loan. No offense but common sense should have set in there.

[ReAl_RaCiNg]

hey,
i don't know if it's too late for your problem, but if you can, cancel that whole contract. 17.9 percent interest is absolutely ridiculous. Regular interest payments are anywhere around 3-7 percent. i don't know where you went shopping, but you should ask someone who knows about that stuff before signing anything.

[Stevusc]

thats criminal

[Doug Rodrigues]

Actually, 15% interest is what someone would be charged if they just had a bankruptcy! Anyway, download this very long article about car salesmen & women. Always remember: A car salesman (or woman) is NOT your friend! I just had a recent experience buying a nearly new car at a new car auto agency. The salesman kept saying that there wasn't any problem with fixing anthing I found wrong with the vehicle I was buying. He said, "After all, you've got a 90 day warranty." He kept trying to rush me to sign the contract. I took my time and read every word until I understood what I was signing. There in the small print was the stipulation of the warranty, "There is a $100 deductable payment required for each and any single warranty repaired item." WRONG! That doesn't work for me. I had the salesman enter three major items to be repaired prior to me agreeing to the purchase. He agreed to that. But wait....when I returned to sign the "final" contract, nowhere in that binding contract was anything said about fixing anything! I pointed this error out to the business manager who then, without a word, added my demand to the contract. Those SOB's were trying to rip me off! Read the download about car salesmen & women. I fit the "Grinder" catagory.

http://www.edmunds.com/dcm/editorial...confession.pdf

This download takes some time and requires the Adobe program, but it's worth every minute of your time to download it and read the article. It will save you money in the future. Just remember: When you go to a car agency, you're doing them a favor to even consider purchasing a vehicle at a marked up price....probably a grossly marked up price. Don't let all the salesman razzel-dazzel affect your logical thinking. Lastly, don't let the salesman rush you or allow yourself to be put into the position where you think that they are doing you a favor. The salesman's job is to squeeze every last dime out of you that you allow them to.

[fredjacksonsan]

Awesome article....thanks Doug.

[MarkHutch]

Doesn't sound like you were treated right here. As suggested contact your local DA or State Attorney General. They frown on folks taking advantage of people that are in your situation. Some folks in the F&I department at car dealerships will do the old bait and switch tactic to make more money. It sounds like that happened to you.

Hope you enjoy your new car, but it's going to be hard to enjoy it when you feel like you were ripped off at the point of purchase.