I think I'm having a fast one pulled on me on my loan. Auto Gallery Imports
#12
03-20-2008, 10:45 PM
RE: I think I'm having a fast one pulled on me on my loan
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.
#13
03-21-2008, 02:21 AM
RE: I think I'm having a fast one pulled on me on my loan
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...
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...
#14
03-21-2008, 09:53 AM
RE: I think I'm having a fast one pulled on me on my loan
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$$holes you are dealing with there, OP. Go back to your local bank, have them issue a payoff check directly to the lender, NOT the dealer. The check should be for about 28,800ish (not 28,600) due to interest already accrued. Unfortunately, the bank fee isn't going anywhere. Once you drove off the lot, you own the car. The dealer doesn't have to give you any money back. Check your local laws, because every state is different, but 90% are like this. Like someone else said, there is no right of recision on a car loan. The only thing you have the right to cancel is the warranty. If you do it within 30 days, you will get all of your money back on it. I'm guessing that it is still under factory warranty. If it is, shop other audi dealers to get the best price.
Hope this helps a little bit.
Bank fee is bogus. Finance gets paid by marking up the contract price. If the bank gives us (the dealer) the contract at 6.9% (called "buy rate"), the dealer has the right to mark it up between 1.5% and 3% depending on the bank. So, if I charge you 9.9%, the dealer will make the difference in profit. One way to get around showing you a higher interest rate is to charge you a buydown fee. All this is is figuring out our profit if we marked it up, and charge it upfront and show you a lower rate. Basically, instead of paying the extra interest (between the 6.9 and 9.9) over your monthly payments, you pay me all that money upfront! Sound like a great deal huh? Complete and utter a$$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.
#15
03-21-2008, 10:58 AM
RE: I think I'm having a fast one pulled on me on my loan
Agreed with above...
I know some dealers in my areawould 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 know some dealers in my areawould 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
#16
03-21-2008, 11:58 AM
RE: I think I'm having a fast one pulled on me on my loan
ORIGINAL: Jabber
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$$holes you are dealing with there, OP. Go back to your local bank, have them issue a payoff check directly to the lender, NOT the dealer. The check should be for about 28,800ish (not 28,600) due to interest already accrued. Unfortunately, the bank fee isn't going anywhere. Once you drove off the lot, you own the car. The dealer doesn't have to give you any money back. Check your local laws, because every state is different, but 90% are like this. Like someone else said, there is no right of recision on a car loan. The only thing you have the right to cancel is the warranty. If you do it within 30 days, you will get all of your money back on it. I'm guessing that it is still under factory warranty. If it is, shop other audi dealers to get the best price.
Hope this helps a little bit.
TurboedA6 is dead on. I'm (actually was) a finance manager for dealerships for over 10 years. I agree 100% with turboed. I'll add a few things though.
Bank fee is bogus. Finance gets paid by marking up the contract price. If the bank gives us (the dealer) the contract at 6.9% (called "buy rate"), the dealer has the right to mark it up between 1.5% and 3% depending on the bank. So, if I charge you 9.9%, the dealer will make the difference in profit. One way to get around showing you a higher interest rate is to charge you a buydown fee. All this is is figuring out our profit if we marked it up, and charge it upfront and show you a lower rate. Basically, instead of paying the extra interest (between the 6.9 and 9.9) over your monthly payments, you pay me all that money upfront! Sound like a great deal huh? Complete and utter a$$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.
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.
#17
03-21-2008, 12:06 PM
RE: I think I'm having a fast one pulled on me on my loan
ORIGINAL: mkaresh
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.
ORIGINAL: Jabber
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$$holes you are dealing with there, OP. Go back to your local bank, have them issue a payoff check directly to the lender, NOT the dealer. The check should be for about 28,800ish (not 28,600) due to interest already accrued. Unfortunately, the bank fee isn't going anywhere. Once you drove off the lot, you own the car. The dealer doesn't have to give you any money back. Check your local laws, because every state is different, but 90% are like this. Like someone else said, there is no right of recision on a car loan. The only thing you have the right to cancel is the warranty. If you do it within 30 days, you will get all of your money back on it. I'm guessing that it is still under factory warranty. If it is, shop other audi dealers to get the best price.
Hope this helps a little bit.
TurboedA6 is dead on. I'm (actually was) a finance manager for dealerships for over 10 years. I agree 100% with turboed. I'll add a few things though.
Bank fee is bogus. Finance gets paid by marking up the contract price. If the bank gives us (the dealer) the contract at 6.9% (called "buy rate"), the dealer has the right to mark it up between 1.5% and 3% depending on the bank. So, if I charge you 9.9%, the dealer will make the difference in profit. One way to get around showing you a higher interest rate is to charge you a buydown fee. All this is is figuring out our profit if we marked it up, and charge it upfront and show you a lower rate. Basically, instead of paying the extra interest (between the 6.9 and 9.9) over your monthly payments, you pay me all that money upfront! Sound like a great deal huh? Complete and utter a$$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.
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
#18
03-21-2008, 12:15 PM
RE: I think I'm having a fast one pulled on me on my loan
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.
Jeff
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.
Jeff
#19
03-21-2008, 12:24 PM
RE: I think I'm having a fast one pulled on me on my loan
ORIGINAL: formulagigi
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
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.
#20
03-21-2008, 12:47 PM
RE: I think I'm having a fast one pulled on me on my 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.