I didn't know where else to post this but here goes, bare with me here. I bought a 2006 A6 for $28,900. Plus $3,233 for a 3 year warranty, plus $3,319.52 for taxes, plus $995 bank fee, plus $295 registration fee. Minus $8100 down payment. Total comes to $28,642.52. However the amount financed on my instalment contract is $36,381. That's a difference of $7738.48. I called about it once and that's when he broke down everything for me, which is where I came up with the amounts I just listed. He also said there was a interest buydown cost of $962 per each year of the loan, which is 7 years. So I wrote this all down and faxed the dealer, but I left out the buydown cost because I thought he meant that was the interest amount, and I showed that I thought I was overcharged $7738.48. Then he called me back and was trying to figure it out and says...oh! you left out the buydown. Then he said the buydown was $1105.49 times 7. My interest rate is 7.05% for 7 years...that doesn't sound like a rate buydown to me! Finance charge comes to $9816.48. Also When I first bought the car and was at the dealership I said I thought the amount financed was too high and he said the warranty was $3233 per year (times 3 years). So after I got home I decided that was too much and told him I wanted to cancel the $3233 per year warranty and he says it's only $3233 total. Any opinions or what I should do? I have all our phone convos on tape. autogalleryimports.com is the dealers website. It's not an Audi dealer.
Keywords
Auto Gallery Imports
Gallery Auto
Auto Gallery Imports, Inc.
< Message edited by daredevil1 -- 3/21/2008 11:28:28 AM >
Ok I just called the loan company and they have no idea what I'm talking about when I asked them about a buydown charge. I already have the loan. I don't know what to do.
One possibility: the dealer contracted the loan at a high interest rate, say 10%, got a kickback for the extra interest, then charged you a buydown fee to bring that rate down to 7%. Which was still higher than it should be IF YOUR CREDIT IS GOOD.
Very expensive warranty as well.
Sounds like you got hosed every which way.
At this point your best bet is to keep complaining WITHOUT losing your cool. One person who got hosed by a dealer was able to get the deal reversed by going to the dealer and then refusing to leave until the problem was cleared up. This is a risky strategy, though. That dealer threatened to call the police. She told them to go right ahead. That's when they bought the car back from her.
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My credit score is 735. I originally applied for a loan through my own bank and the interest was going to be either 6.5 or 7.5 I can't remember. But I decided it would be easier to do it through the dealer (Guess that was a big mistake!) since I live 4 and a half hours from where I bought the car. What about getting a lawyer?
< Message edited by daredevil1 -- 3/20/2008 11:41:35 AM >
There might be additional factors, like your job status. But my understanding is that any score over 720 is usually enough for the lowest rate.
Forgot to comment on the "bank fee" earlier. That should also be 0. There aren't usually closing costs on an auto loan. On a lease, yes, but not on a loan. That was probably pure profit for the dealer.
I'd get a lawyer as a last resort. Lawyers aren't free. I'd first try placing more pressure on the dealer.
How late at night was the closing?
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I thought most states allow 24-72 hours to rescind the agreement.
I went through your numbers and the amount you are financing is $28,643. If your interest is $9,816 then you are paying back a total of $38,459 over 7 years at $458/month.
I also don't understand the sales tax. I know NY is high (s/b around 8%), but when I figure the $3233 divided by the cost of the vehicle plus the service contract plus the registration fee ($32428), it comes to 10.2%.
Call the bank and ask for the APR (annual percentage rate) and find out what the bank fee is. I also think the $995 bank fee is bogus. I doubt the bank can charge that so it must be the dealer charging you to set up the loan.
When you REFINANCE a home mortgage you generally have 72 hours to rescind the agreement. As far as I know, there is no such possibility with a car loan, though many people think there is.
Thinking through the OP, here's what I'd do:
1. Get the dealer to agree to cancel the warranty and the loan, making you responsible for the agreed up purchase price of the car plus tax. All other payments to be refunded. This way they at least get to sell the car.
2. Arrange new financing for the base car price plus tax. As someone suggested earlier, Capital One and Lending Tree are good places to start. Once you have this loan, use it to pay the dealer for the car.
3. If you want an extended warranty, shop for that separately. Seek a warranty company with a strong reputation. My site refers people to Warranty Direct, because I have faith they'll remain in business (yes, my expectations for all such companies are fairly low). The A6 is still under the factory warranty, right? There's no hurry to do this.
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You should be able to change your financing option since you just bought it. Just get the low rate loan...audi was offering me 5.5 for 5 yrs but I already had 4.9 for 5 yrs. I would also talk to audi customer service and see what they recommend. They sound helpful over the phone but never got a chance to test them out.
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2006 Audi A6 3.2 (Blue and Amaretto) Tech and Premium Package RS4 replica wheels 2005 Infiniti G35 coupe
The total ($28,642.52) after all of the fees sounds correct. This includes the tax, warranty, bank fee, registration, then less your $8,100 down payment. The bank fee sounds like an utter joke in my opinion. It's a fee charged to setup the loan that is not calculated in the loan itself but paid seperately; sounds like more on the dealer part to make extra money. The part about the warranty looks like someone just got a little retarded and meant $3,233 for the three years, not per year or else the numbers would be off, simple accounting. The cost of the loan for 7.05% a year is right. From $28,642.52 it would cost $8,188.48 ($9816.48 crazy error... dyslexia?) to finance it for 7 years. The total will be $36,381... The math is totally right, it could be $36,371.16 not rounding up... My number skills from accounting at work.
Like I said the bank fee is bogus. You could possibly get a better rate... and the warranty is $3,233, there was a slight slip up obviously or it would be much more. I hope this helps. Easily numbers add up, a 28k car can easily cost 10k more all said and done. Unless you get a sick rate, the more you put down or the shorter the loan term will drastically decrease the loan amount. *IE: From 28,642.52 for a shorter term. 7 years = $36,371.16 5 years = $34,069.80 3 years = $31,861.80
All due respect. I'm only 19, this is simple stuff people should know / figure out before buying a car. I know I did before I got my A6. You can definetly shop around for better. You should also educate yourself about loans. The guy punching the numbers in for the 7 year loan from $28,642.52 coming out at $36,381 is correct, rounded up. But both parties don't understand how a loan is figured. Best of luck!
-PS If you have to think about it, you probably can't afford it...
< Message edited by TurboedA6 -- 3/21/2008 12:14:22 AM >
TurboedA6 is dead on. I'm (actually was) a finance manager for dealerships for over 10 years. I agree 100% with turboed. I'll add a few things though.
Bank fee is bogus. Finance gets paid by marking up the contract price. If the bank gives us (the dealer) the contract at 6.9% (called "buy rate"), the dealer has the right to mark it up between 1.5% and 3% depending on the bank. So, if I charge you 9.9%, the dealer will make the difference in profit. One way to get around showing you a higher interest rate is to charge you a buydown fee. All this is is figuring out our profit if we marked it up, and charge it upfront and show you a lower rate. Basically, instead of paying the extra interest (between the 6.9 and 9.9) over your monthly payments, you pay me all that money upfront! Sound like a great deal huh? Complete and utter a$$holes you are dealing with there, OP. Go back to your local bank, have them issue a payoff check directly to the lender, NOT the dealer. The check should be for about 28,800ish (not 28,600) due to interest already accrued. Unfortunately, the bank fee isn't going anywhere. Once you drove off the lot, you own the car. The dealer doesn't have to give you any money back. Check your local laws, because every state is different, but 90% are like this. Like someone else said, there is no right of recision on a car loan. The only thing you have the right to cancel is the warranty. If you do it within 30 days, you will get all of your money back on it. I'm guessing that it is still under factory warranty. If it is, shop other audi dealers to get the best price.
Agreed with above... I know some dealers in my area would allow me to return the car wihtin 30days. have you asked? and 7 years for a loan!! man!!! come on... you should keep it under 5 years... or buy a cheaper IMO.
But anyway, on my most recent car purchases the best rates I got were with Synergy bank, Suntrust, CapitalOne.... some I got via Lending tree
TurboedA6 is dead on. I'm (actually was) a finance manager for dealerships for over 10 years. I agree 100% with turboed. I'll add a few things though.
Bank fee is bogus. Finance gets paid by marking up the contract price. If the bank gives us (the dealer) the contract at 6.9% (called "buy rate"), the dealer has the right to mark it up between 1.5% and 3% depending on the bank. So, if I charge you 9.9%, the dealer will make the difference in profit. One way to get around showing you a higher interest rate is to charge you a buydown fee. All this is is figuring out our profit if we marked it up, and charge it upfront and show you a lower rate. Basically, instead of paying the extra interest (between the 6.9 and 9.9) over your monthly payments, you pay me all that money upfront! Sound like a great deal huh? Complete and utter a$$holes you are dealing with there, OP. Go back to your local bank, have them issue a payoff check directly to the lender, NOT the dealer. The check should be for about 28,800ish (not 28,600) due to interest already accrued. Unfortunately, the bank fee isn't going anywhere. Once you drove off the lot, you own the car. The dealer doesn't have to give you any money back. Check your local laws, because every state is different, but 90% are like this. Like someone else said, there is no right of recision on a car loan. The only thing you have the right to cancel is the warranty. If you do it within 30 days, you will get all of your money back on it. I'm guessing that it is still under factory warranty. If it is, shop other audi dealers to get the best price.
Hope this helps a little bit.
Legally, this is probably correct. Unless it seems they slipped these fees in there entirely without your awareness, they get to keep all of the extra fees (bank fee, buydown fee, etc.) they managed to pad the tab with.
However, these are clearly shady practices, and sometimes when you confront a seller about such practices they reverse them for the sake of their reputation, to avoid the hassle of dealing with you further. etc.
So I personally would not have a check issued directly to the lender. This cuts the dealer out of the transaction, and lets them hold onto all of those questionable fees.
What had you heard about the reputation of this dealer before you set foot in there? With practices like this, they can't have a good one. In the future, it's probably best to ask around before going to a dealer. And if you hear about practices like these, don't go.
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TurboedA6 is dead on. I'm (actually was) a finance manager for dealerships for over 10 years. I agree 100% with turboed. I'll add a few things though.
Bank fee is bogus. Finance gets paid by marking up the contract price. If the bank gives us (the dealer) the contract at 6.9% (called "buy rate"), the dealer has the right to mark it up between 1.5% and 3% depending on the bank. So, if I charge you 9.9%, the dealer will make the difference in profit. One way to get around showing you a higher interest rate is to charge you a buydown fee. All this is is figuring out our profit if we marked it up, and charge it upfront and show you a lower rate. Basically, instead of paying the extra interest (between the 6.9 and 9.9) over your monthly payments, you pay me all that money upfront! Sound like a great deal huh? Complete and utter a$$holes you are dealing with there, OP. Go back to your local bank, have them issue a payoff check directly to the lender, NOT the dealer. The check should be for about 28,800ish (not 28,600) due to interest already accrued. Unfortunately, the bank fee isn't going anywhere. Once you drove off the lot, you own the car. The dealer doesn't have to give you any money back. Check your local laws, because every state is different, but 90% are like this. Like someone else said, there is no right of recision on a car loan. The only thing you have the right to cancel is the warranty. If you do it within 30 days, you will get all of your money back on it. I'm guessing that it is still under factory warranty. If it is, shop other audi dealers to get the best price.
Hope this helps a little bit.
Legally, this is probably correct. Unless it seems they slipped these fees in there entirely without your awareness, they get to keep all of the extra fees (bank fee, buydown fee, etc.) they managed to pad the tab with.
However, these are clearly shady practices, and sometimes when you confront a seller about such practices they reverse them for the sake of their reputation, to avoid the hassle of dealing with you further. etc.
So I personally would not have a check issued directly to the lender. This cuts the dealer out of the transaction, and lets them hold onto all of those questionable fees.
What had you heard about the reputation of this dealer before you set foot in there? With practices like this, they can't have a good one. In the future, it's probably best to ask around before going to a dealer. And if you hear about practices like these, don't go.
Yeah I didn't understand how that would help me any. My payoff amount is $36,626.95
You should be leasing a car, you can't afford this car. So in 2015 when your car is finally paid off, it has ~200k miles on it you'll be done. You can get a warranty on your car till around 100k but what are you going to do after that. Pay all the maintinence bills on top of your $450.00 mnth car payment.
I feel bad for you, your learning a financing lesson. But not on a 5k dollar car but on a 30k car. Refinance as soon as possible, ditch the warranty and then sell the car unless you can get a 4 maybe 5 year car loan. Dealer financing is almost always a rip off.
Agreed with above... I know some dealers in my area would allow me to return the car wihtin 30days. have you asked? and 7 years for a loan!! man!!! come on... you should keep it under 5 years... or buy a cheaper IMO.
But anyway, on my most recent car purchases the best rates I got were with Synergy bank, Suntrust, CapitalOne.... some I got via Lending tree
I didn't plan on doing 7 years. I planned on doing 3 years, but that was based on that I would only have to pay $20,800. But the dealer recommended doing it for 7 years just in case, and then he said I could just pay more and it would come off the interest. And no I can't return it.
< Message edited by daredevil1 -- 3/21/2008 9:33:17 AM >
How many miles are on the car? You are paying a big chunk in interest for that car. Almost a third of the value. "7 years just in case".... Even if you pay more, your still paying down 8,100 for a 7 year loan.
How many miles are on the car? You are paying a big chunk in interest for that car. Almost a third of the value. "7 years just in case".... Even if you pay more, your still paying down 8,100 for a 7 year loan.
I didn't plan on doing 7 years. I planned on doing 3 years, but that was based on that I would only have to pay $20,800. But the dealer recommended doing it for 7 years just in case, and then he said I could just pay more and it would come off the interest. And no I can't return it.
Just in case of what? Just in case they couldn't stuff enough fees into a three-year loan?
I worked at a car dealer with this sort of F&I dept. a summer when I was in college, back in the 1980s. The "best" of this sort of finance manager can tell exactly how much they can get out of each customer. This guy unfortunately saw you, your good credit score, and you're $8,000 down, and realized he could finance nearly the entire purchase price of the car. So that $8,000 could all be his. He just had to load you up with every extra, unnecessary fee imaginable.
I remember a guy like this when I was selling cars. The manager realized that the guy--with a solid job and good credit--would protest every time something was added on, but would then give in. So the manager kept loading stuff on.
If you find you cannot sort this out on your own, do you have any friends who tend to be good at this sort of thing?
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I think I'm having a fast one pulled on me on my loan. ... - 
