URGENT!!! Please help I need some info on auto dealership contracts

[Arkitech]

My younger brother brought a car today at interest rate of 19.95%. I told him the dealership was robbing him blind and to take the car back and get out of the contract. If I'm not mistaken under Illinois law a buyer has a certain period of time to return a car to the dealership if he changes his mind. I beleive its called buyers remorse or something to that effect. Can anyone out there give me a little more information about this?


Edit: I spoke to the salesman on the phone and he claims according to Illinois law that once the buyer takes the car off of the lot that he is legally binded to keep the car. However I'm fairly certain that there is a grace period in which the buyer can still return the vehicle.


Thanks for any advice you can share with me

 

[RossMAN]

I thought there was a 3 day cancellation period? Maybe it's houses I'm thinking of.

Tell your (naive) younger brother that he got RAPED up the bum!

1) What is the amount financed?
2) 48, 60, or 72 months term?

 

[Ausm]

19.95% OMG!! That is highway robbery but typical with lenders when someone is young and/or has bad credit.

Ausm

 

[Codewiz]

The Three-Day-Right-to-Cancel Law does not apply to an auto purchase, and Illinois Lemon Law applies only to new cars, not used car sales or leases.

link

Your brother is sh*t out of luck

 

[Arkitech]

Originally posted by: RossMAN
I thought there was a 3 day cancellation period? Maybe it's houses I'm thinking of.

Tell your (naive) younger brother that he got RAPED up the bum!

1) What is the amount financed?
2) 48, 60, or 72 months term?

I think the amount is about 16 or 17k for a 5 year period. Grrrr I could choke my brother I told him to wait til I went with him before he bought a car

 

[RossMAN]

Originally posted by: ausm
19.95% OMG!! That is highway robbery but typical with lenders when someone is young and/or has bad credit.

I guess the only positive aspect of this (if you can even call it positive) is if he makes all his payments on time his credit will be better. So next time he buys a car it will be 1.9-8% instead of 19.95%!!!!!!!!!!!!!!!!!!!!!!

 

[RossMAN]

Just curious, what year/make/model/trim did he buy?

 

[HappyPuppy]

Originally posted by: Arkitech

Originally posted by: RossMAN
I thought there was a 3 day cancellation period? Maybe it's houses I'm thinking of.

Tell your (naive) younger brother that he got RAPED up the bum!

1) What is the amount financed?
2) 48, 60, or 72 months term?

I think the amount is about 16 or 17k for a 5 year period. Grrrr I could choke my brother I told him to wait til I went with him before he bought a car

Tell your brother to go find a better loan. When he gets it he can pay off the original. No big deal. I have bought cars at dealerships and swapped financing several times.

 

[Mill]

If you trust your brother then you could always cosign with him to get a new loan so that he doesn't have to pay that crazy rate! That is so shady of the salesman it isn't even funny!

 

[ElFenix]

jebus, he got screwed!

 

[Imdmn04]

Originally posted by: Codewiz

The Three-Day-Right-to-Cancel Law does not apply to an auto purchase, and Illinois Lemon Law applies only to new cars, not used car sales or leases.

link

Your brother is sh*t out of luck

then on what purchases does this law come into effect, the article is not clear on this

 

[Doggiedog]

Originally posted by: HappyPuppy

Originally posted by: Arkitech

Originally posted by: RossMAN
I thought there was a 3 day cancellation period? Maybe it's houses I'm thinking of.

Tell your (naive) younger brother that he got RAPED up the bum!

1) What is the amount financed?
2) 48, 60, or 72 months term?

I think the amount is about 16 or 17k for a 5 year period. Grrrr I could choke my brother I told him to wait til I went with him before he bought a car

Tell your brother to go find a better loan. When he gets it he can pay off the original. No big deal. I have bought cars at dealerships and swapped financing several times.

Exactly, just refinance and get a loan somewhere else. He may have to pay some kind of pre payment penalty considering how shady that salesman was but I'd rather have the money going to a legitimate source rather than keeping them in business.

 

[Arkitech]

Originally posted by: RossMAN
Just curious, what year/make/model/trim did he buy?

Its a 2000 Mercury Mountaineer, I'm not sure about the other details

 

[waggy]

well he either is young or has crappy credit.

if he has so so credit 19% aint bad he could have done much worse. also if this is his first loan then that could be it. but if nothing else he has learned a leason. Check around for loans!

realtree.com is great for that.

 

[StageLeft]

I got a loan for 16k at 6.75 and I pay $314 or $316/month. At 19.95 he's paying $423. That's truly sickening. If you can't get out of it as others mentioned hopefully he can get a loan elsewhere and perhaps you'll have to cosign with him and he can pay off the first.

And if that doesn't happen let's hope he learns from this lesson and realizes how awful impulse buying is.

 

[Arkitech]

OK the salesperson will allow my brother to choose another car on the lot, he has until tommorow to make a decision. I'll try to do some research and see what I can come up with by then. If he's still stuck under that contract I'll try to get him into a new Cavalier so at least he'll have a car thats in good running condition.

Some of these salesmen are real scum

Thanks to everybody for the info

 

[Doggiedog]

Originally posted by: Arkitech
OK the salesperson will allow my brother to choose another car on the lot, he has until tommorow to make a decision. I'll try to do some research and see what I can come up with by then. If he's still stuck under that contract I'll try to get him into a new Cavalier so at least he'll have a car thats in good running condition.

Some of these salesmen are real scum

Thanks to everybody for the info

Allow him? WTH? It's your bro's goddam money but the guy acts like he is doing him a favor by not explicitly ripping him off. I hate that good cop bad cop stuff these jokers play.

 

[Evadman]

Originally posted by: Millennium
If you trust your brother then you could always cosign with him to get a new loan so that he doesn't have to pay that crazy rate! That is so shady of the salesman it isn't even funny!

No, do not cosign for your brother unless you will pay his payments. Too many families have been torn apart by this. I hate to say it. If you trust him explicitly, then go for it.

Illinois does not have the 3 day law on auto purchases. you sign, you stuck. but that dealer was an ass. I recomend posting the dealership's name here so we may all avoid it, and tell everyone we know that they rip people off.

Most credit unions are refinancing at $6.25 now. I am a member of Vamco, which is doing 6.25 60 mo used car refi's.

BTW, I live in IL.

 

[Vic]

Whoa now, don't buy another car off the lot. I know this game, they'll try to trick him into a lower-valued car for the same price and finance terms. If he got a decent deal on the vehicle (and according to kbb.com the car's retail value is more than $18k if in good condition and with reasonable mileage), then stick with it. He can always refinance the car loan in a couple of months. But, I think that he may have gotten a semi-decent deal. If he is young and has poor credit or no credit (no credit being even worse than poor credit), then 19% isn't that bad for a used car sub-prime auto loan.
Listen to me. If he bought the SUV for less than $18k and it's in good shape with relatively low mileage, and he's young with only like a year on his first job and with bad or no credit, and put only very little down, then he got a pretty good deal. If you'll pardon me, butt out and let him make his own decisions.

 

[Mill]

Originally posted by: Evadman

Originally posted by: Millennium
If you trust your brother then you could always cosign with him to get a new loan so that he doesn't have to pay that crazy rate! That is so shady of the salesman it isn't even funny!

No, do not cosign for your brother unless you will pay his payments. Too many families have been torn apart by this. I hate to say it. If you trust him explicitly, then go for it.

Illinois does not have the 3 day law on auto purchases. you sign, you stuck. but that dealer was an ass. I recomend posting the dealership's name here so we may all avoid it, and tell everyone we know that they rip people off.

Most credit unions are refinancing at $6.25 now. I am a member of Vamco, which is doing 6.25 60 mo used car refi's.

BTW, I live in IL.

I wouldn't cosign for my brother either, but the keyword was TRUST. hehe