I think I got scammed, what to do? Advice?

[Razor1289]

Check to make sure there is no penalty first?

I checked, there is no penalty.

Just some clarification questions...

Generally when you look at the final number from a loan, it includes any interest you pay over the entire life of the loan. I'm sure 75mo even at 2.4% is going to tack on a thousand or 2 at minimum payments.

Second, if they offered you any rebates or money that kicks in for taking a loan, that also is subtracted from the retail price AFTER the fact. So you see the retail price on paper, but what YOU actually pay somewhere further down.

What I suggest doing is looking at your loan amount and adding your down payment to see what you actually paid. I'll be shocked if it comes to $32.7k.

EDIT:

Also your responses and detailed explanation were great. Being a first time car buyer you must be reasonably young, but well balanced. Just keep brushing the pricks off.

Heya, I made a workup of my numbers in excel as they appeared on the paperwork.

Its not $32k OTD, its $32k when you make your 75th payment to your loan.

OTD its more like $30 or $31k. You expect them to adjust the price of the vehicle so when you make the 75th payment it is $28500 (or any other "OTD" price)? Ridiculous.
Only the tax and dealer fees should be in the OTD price, not the interest on the loan.

Car Loan Payment Calc

Vehicle Price : $28,500
Downpayment : $12,000
Trade-in : $0
Sales Tax : 8%
Interest Rate : 2.4%
Term : 75 months

= ~$270/month x 75 months + 12,000 = $32,250

Two things to account for : Sales tax could be less, but the dealer fee of $250-$500 will bring it right back up to around $32K OTD. The financing itself, disregarding everything else, looks fine.

Just to clarify, the $28,480 OTD price includes taxes, rebate, dealer fees but NOT finances. We discussed that the finance cost would be separate when I was negotiating. I knew there was going to be an additional cost in the form of finance, but I also knew I would get a decent rate because of my credit/loan history and I know I would pay it off way before 75 months.

You guys are pretty close though, in a separate calculation I made, it turned out to be $31,290.72 after 75 months if the finances are kept at a constant.

I think you should just burn the dealership down.

But seriously regardless of who is at fault here, why the fuck does this actually still happen? Why do dealerships (and mechanics for that matter) have to be scumbags? What is it about automobiles that makes seemingly everyone in the industry a piece of shit?

You summed up my feelings on this lol - why is all this even necessary?

What I find, though, is that OTD tactic works best when you negotiate over the web as it has a proof that we are looking at the same number. When I tried to negotiate OTD number while I was at the dealer, I experienced very similar to what OP fell into. Salesperson acts like they have no idea what OTD means, and tries to play around with number. (Too bad for them that I am an accountant, so I am good at number. lol)

This was pretty much what happened lol. The worst part - I’m a math grad and they got me, I feel ashamed :'(

 

[Tweak155]

I checked, there is no penalty.



Heya, I made a workup of my numbers in excel as they appeared on the paperwork.

Just to clarify, the $28,480 OTD price includes taxes, rebate, dealer fees but NOT finances. We discussed that the finance cost would be separate when I was negotiating. I knew there was going to be an additional cost in the form of finance, but I also knew I would get a decent rate because of my credit/loan history and I know I would pay it off way before 75 months.

You guys are pretty close though, in a separate calculation I made, it turned out to be $31,290.72 after 75 months if the finances are kept at a constant.




You summed up my feelings on this lol - why is all this even necessary?



This was pretty much what happened lol. The worst part - I’m a math grad and they got me, I feel ashamed :'(

By looking at the sheet, you did in fact pay $32.7k (unpaid balance of cash + $12k down payment) OTD.

I'd be calling up GM and explain to them your negotiated OTD price and, at minimum, why the sales price was over the sticker price.

You definitely made some mistakes but that doesn't mean you sit back and take it when you get dicked over. Your mistakes doesn't justfity their wrong doing. At LEAST make some phone calls.

 

[MrBond]

What is the tire disposal fee for? Why would you be charged that on a new car?

 

[WilliamM2]

That only applies if they come to you with an offer.

If you go to them looking to purchase the 3 day grace period doesn't apply.

What state is he in? In Michigan, you have 3 days to back out of a car sale, new or used, if it's from a dealer. Private parties you are stuck.

 

[smackababy]

What is the tire disposal fee for? Why would you be charged that on a new car?

I was wondering the same thing. Just another fee tacked on I suppose.

 

[Zargon]

By looking at the sheet, you did in fact pay $32.7k (unpaid balance of cash + $12k down payment) OTD.

I'd be calling up GM and explain to them your negotiated OTD price and, at minimum, why the sales price was over the sticker price.

You definitely made some mistakes but that doesn't mean you sit back and take it when you get dicked over. Your mistakes doesn't justfity their wrong doing. At LEAST make some phone calls.

for real

camaros are plentiful, no reason to get stuck paying markup

 

[smackababy]

OP, don't feel too bad. You got a decent rate and it only cost you a few extra grand. For a first time buyer, that is pretty good. A friend of mine in the military ended up financing over $25,000 with something stupid like a 13% interest rate on his first car.

 

[waggy]

hahah wow.

 

[OILFIELDTRASH]

Where do you get he only lost 4k? The otd agreed on price was 28.5k. That would have meant purchase price was close to 25k and with fees/taxes it would have been 28.5k. He got hosed for over 6k dollars.

 

[OILFIELDTRASH]

OP, don't feel too bad. You got a decent rate and it only cost you a few extra grand. For a first time buyer, that is pretty good. A friend of mine in the military ended up financing over $25,000 with something stupid like a 13% interest rate on his first car.

In what world is 6k a few grand?

 

[OILFIELDTRASH]

for real

camaros are plentiful, no reason to get stuck paying markup

He paid sticker then they tacked on tint, pinstripes, scotch guard, and whatever else they wanted on top.

 

[7window]

After reading your post there is a definite discrepancy between the verbal and written contract. Not surprised from a dealer. They got you for $4k.

 

[7window]

He paid sticker then they tacked on tint, pinstripes, scotch guard, and whatever else they wanted on top.

I didn't see this on the workup sheet.

 

[Zenmervolt]

What state is he in? In Michigan, you have 3 days to back out of a car sale, new or used, if it's from a dealer. Private parties you are stuck.

Wrong.

http://www.michigan.gov/ag/0,4534,7-164-17337_20942-44718--,00.html

Even in Michigan you do NOT have a 3-day window to back out of a car sale.

ZV

 

[MagickMan]

Last purchase, I had a target price out the door, told them my preference (which I knew was a little low), we went back and forth, came within $400 of it, I wrote a check and we were done.

Even if you're financing, nothing says you must finance at the dealership. The last car that I financed a portion of, I secured from a bank before I even went looking. The dealer has incentives to upsell you (or just lie) on loans.

I use a tactic similar to MagicMan. Salesmen don't like it, but I do not give a shit what they like. My money is still green, and they will still take it, albeit begrudgingly sometimes.

Yep, doesn't take a rich man to go to a credit union and get a preapproved loan and have "cash" in hand. It's a brilliant method I learned from my grandfather, and it's fun to watch the sales people squirm.

 

[kitatech]

...again, MM has reminded us that OTD is the cost of the car not the cost of the loan (financing) and that bringing in money from a credit union or another finance agency makes the OTD'sD a little more CLEAR...

MM's preapproved loan costs (and mine on my current car) are part of the TTO'sGD price ultimately being paid...another thing...IIRC, OP mentioned 2.4% for a loan...that's a good .5% more than a new car loan should cost...when auto-shopping, everyone should take MM's advice and shop the loan first!

 

[Ferzerp]

Yep, doesn't take a rich man to go to a credit union and get a preapproved loan and have "cash" in hand. It's a brilliant method I learned from my grandfather, and it's fun to watch the sales people squirm.

Yup, if you aren't paying cash, it's the way to go. *If* the manufacturer has one of those 0% or other almost negligible interest deals going on that is actually better than the cash back alternative, you can always apply for that too, but keep your prior approved loan as a fall back. Just know the math and do the math for each option.

 

[Tweak155]

Where do you get he only lost 4k? The otd agreed on price was 28.5k. That would have meant purchase price was close to 25k and with fees/taxes it would have been 28.5k. He got hosed for over 6k dollars.

Because he ended up paying $32.7k OTD. Its only $35k after all that interest which he would have also have paid on top of the $28.5k

 

[WilliamM2]

Wrong.

http://www.michigan.gov/ag/0,4534,7-164-17337_20942-44718--,00.html

Even in Michigan you do NOT have a 3-day window to back out of a car sale.

ZV

Then they have changed it. I actually used the law in 1998 to back out of a Mazda.

 

[pcgeek11]

What state is he in? In Michigan, you have 3 days to back out of a car sale, new or used, if it's from a dealer. Private parties you are stuck.

You got a link to that?