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.

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RIp off!!!! return it, find your own financing!!!
try synergy bank or capital one auto finance... even lending tree...
Do yuo ahve good credit score?

 

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.

 

I just got a 5yr. loan from credit union at 4.9. If you have good credit you should be able to do the same. It seems a lot for warranty, taxes etc.

 

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.

 

Wow. That's a lot of extra charges and the prices are outrageous. I say they are definitley trying to throw you a 105 MPH fast ball.

 

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?

 

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?

 

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. Ialso thinkthe $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.