Car Dealership Financing Issue - Page 1

[ARCHIVED THREAD] - Car Dealership Financing Issue

Posted: 6/20/2018 12:48:29 PM EDT

My girlfriend recently purchased a new Honda from a dealership in Texas. She applied for financing through Honda and Capital One. The Honda finance manager told her both interest rate offers were the same, and we decided to finance through Honda. After the sale was finalized, we realized we never personally saw the offer from Capital One, so my girlfriend called them. Capital One told her what their offer was which was significantly lower than what the Honda finance manager told us.

The Honda finance manager lying to us about other financing offers was clearly unethical, but did it violate any laws? If it matters, the difference in the interest rate will cost her about $687 over the life of the loan assuming no late payments, additional principal-only payments, etc.

Posted: 6/20/2018 12:55:49 PM EDT

[#1]

Douches.... Sorry I don't have anything more valuable to offer but Dealerships are the worst..

Trust but verify.

Does the dealership have any "no strings return policy" If within a certain time period?

Posted: 6/20/2018 12:56:23 PM EDT

[#2]

At least a complaint to the BBB

Posted: 6/20/2018 1:59:21 PM EDT

[#3]

Quote History

Quoted:
At least a complaint to the BBB

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They are completely useless.

OP I would complain to Honda corporate. They are about the only ones who have power over the dealerships.

Posted: 6/20/2018 5:36:21 PM EDT

[#4]

Refinance with cap. one. Might check other lenders for rates.

Posted: 6/20/2018 5:42:49 PM EDT

[#5]

texas has a "you can back out of any contract in 3 days" law, so may check into that.

otherwise you're always welcome to refinance with someone else and pay it off early.

Posted: 6/20/2018 6:14:51 PM EDT

[#6]

Quoted:
My girlfriend recently purchased a new Honda from a dealership in Texas. She applied for financing through Honda and Capital One. The Honda finance manager told her both interest rate offers were the same, and we decided to finance through Honda. After the sale was finalized, we realized we never personally saw the offer from Capital One, so my girlfriend called them. Capital One told her what their offer was which was significantly lower than what the Honda finance manager told us.

The Honda finance manager lying to us about other financing offers was clearly unethical, but did it violate any laws? If it matters, the difference in the interest rate will cost her about $687 over the life of the loan assuming no late payments, additional principal-only payments, etc.

View Quote

Honda finance likely requires that the loan is active for a certain amount of time (3 months?) before they kick back something to the dealer.
call capital one back, tell them what happened, refinance the car loan with them, pay off Honda finance, and send a 'get well' card to the Honda stealership manager telling him his stooopid finance manager buttfucked him.

ar-jedi

eta
https://www.penfed.org/auto
(note: anyone can join PenFed. read the fine print.)

Posted: 6/20/2018 8:27:17 PM EDT

[#7]

Quote History

Quoted:

Honda finance likely requires that the loan is active for a certain amount of time (3 months?) before they kick back something to the dealer.
call capital one back, tell them what happened, refinance the car loan with them, pay off Honda finance, and send a 'get well' card to the Honda stealership manager telling him his stooopid finance manager buttfucked him.

ar-jedi

eta
https://www.penfed.org/auto
(note: anyone can join PenFed. read the fine print.)

https://ziva.losdos.dyndns.org/public/misc/penfed-auto.jpg

https://ziva.losdos.dyndns.org/public/misc/penfed-auto2.jpg

View Quote

This part intrigues me. I will look into that. Thanks for the info.

Posted: 6/20/2018 8:28:55 PM EDT

[#8]

Quote History

Quoted:
texas has a "you can back out of any contract in 3 days" law, so may check into that.

otherwise you're always welcome to refinance with someone else and pay it off early.

View Quote

It's been longer than 3 days, but either way this is not true.

https://www.texasattorneygeneral.gov/cpd/the-3-day-right-to-cancel-a-purchase

Posted: 6/20/2018 8:35:32 PM EDT

[#9]

Violates Texas' deceptive trades practices act. Contact AG Consumer Affairs office. Let the dealership know your filing a complaint.

There's also a good chance you can "refinance" through CapOne at the lower rate.

ETA: Texas also prohibits any charge or penalty for paying off a loan early.

Posted: 6/20/2018 8:41:05 PM EDT

[#10]

Quote History

Quoted:
This part intrigues me. I will look into that. Thanks for the info.

View Quote

that sort of arrangement (3 months until the dealer gets the loan kickback) is because of people like me who "finance" the vehicle to get a better overall deal, and then immediately pay off the loan.

exhibit A:
https://www.ar15.com/forums/general/-ARCHIVED-THREAD----Can-you-really-get-a-better-deal-on-a-new-car-when-paying-cash-/5-1576153/?page=1#i44859243

ar-jedi

Posted: 6/20/2018 8:55:57 PM EDT

[#11]

Quote History

Quoted:
Violates Texas' deceptive trades practices act. Contact AG Consumer Affairs office. Let the dealership know your filing a complaint.

There's also a good chance you can "refinance" through CapOne at the lower rate.

ETA: Texas also prohibits any charge or penalty for paying off a loan early.

View Quote

According to a response I got on Avvo from an attorney (just one attorney's judgment, I know), my situation does not fall under the Deceptive Trade Practices Act because the loan isn't "goods or services" and the lie was concerning the terms of the loan, not the product being sold.

Posted: 6/20/2018 11:07:12 PM EDT

[#12]

Wait. Did she apply with Capital One through the dealership? I haven't heard of that. As you discovered, the dealership has no incentive for you to want to finance through Capital One, so they lied to you.

Whenever I've bought a car, I applied through CapOne before I went to the dealership. I knew the rate they were offering. I typically gave the dealership the option to beat the CapOne rate. But I never told them the rate. I just told them to give me their best. For my last two cars, one dealer beat it and we used their financing. The other didn't, and I signed the blank check from CapOne and paid the dealer.

Posted: 6/20/2018 11:22:06 PM EDT

[#13]

...

Posted: 6/22/2018 6:19:42 PM EDT

[#14]

Quote History

Quoted:
Refinance with cap. one. Might check other lenders for rates.

View Quote

Since it has likely been titled it may no longer be consider 'new.'

Depends on state law.

Posted: 6/23/2018 3:07:13 PM EDT

[#15]

Finance people lie. One told my daughter she had to buy GAP, and it had to be bought at the dealer right then.

(That's all lies)

Posted: 6/23/2018 3:38:52 PM EDT

[#16]

Quote History

Quoted:
Violates Texas' deceptive trades practices act. Contact AG Consumer Affairs office. Let the dealership know your filing a complaint.

There's also a good chance you can "refinance" through CapOne at the lower rate.

ETA: Texas also prohibits any charge or penalty for paying off a loan early.

View Quote

Many auto loans used to use the 'Rule of 78s' (more accurately called 'Sum of the Years Digits' rule) to compute payoffs.

It loaded payoffs very unfairly.
A number of states finally got around to prohibiting it.

It is not a "charge or penalty" just a dumb way to compute interest on loans that does NOT favor the borrower.

Posted: 6/28/2018 5:29:54 PM EDT

[#17]

HeSaid/SheSaid.

Refi and consider it a life lesson.

Posted: 10/6/2018 4:37:58 PM EDT

[#18]

Start leaving nasty feedback everywhere about it. You'll get a phone call.

Posted: 10/7/2018 4:20:24 PM EDT

[#19]

Quote History

Quoted:
Start leaving nasty feedback everywhere about it. You'll get a phone call.

View Quote

This, and refi anyway.

Posted: 10/9/2018 4:55:47 PM EDT

[#20]

Quote History

Quoted:
that sort of arrangement (3 months until the dealer gets the loan kickback) is because of people like me who "finance" the vehicle to get a better overall deal, and then immediately pay off the loan.

exhibit A:
https://www.ar15.com/forums/general/-ARCHIVED-THREAD----Can-you-really-get-a-better-deal-on-a-new-car-when-paying-cash-/5-1576153/?page=1#i44859243

ar-jedi

View Quote View All Quotes

View All Quotes

Quote History

Quoted:

Quoted:
This part intrigues me. I will look into that. Thanks for the info.

that sort of arrangement (3 months until the dealer gets the loan kickback) is because of people like me who "finance" the vehicle to get a better overall deal, and then immediately pay off the loan.

exhibit A:
https://www.ar15.com/forums/general/-ARCHIVED-THREAD----Can-you-really-get-a-better-deal-on-a-new-car-when-paying-cash-/5-1576153/?page=1#i44859243

ar-jedi

Did exactly that many years ago on a K5 Blazer.
The old big one.

The fact that I had tutored a bank manager that was then a VP when he was getting
his Master's degree helped very nicely in getting a basically 'employee rate' on the loan.

The crappy 305 engine in it ate multiple Mexican camshafts before failing badly.
Had to put a whole new engine in the thing.

But I did drive it almost 200,000 miles before selling it for well more than the cost of the 350 4-bolt engine I swapped in.

Posted: 10/9/2018 9:32:21 PM EDT

[#21]

I have more respect for drug dealers, pimps and orthodontists than car dealers.

[ARCHIVED THREAD] - Car Dealership Financing Issue

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