Dealer wants me to come back in. Change in financing?

[IsLNdbOi]

I got a voice mail from the finance manager that dealed w/ me at my Toyota dealer. He said that they got my financing approved, BUT there's a change in some of the terms and the monthly payment.

The yellow sheet I signed when I went home with the car said my payment would be $253 a month at 84 months.

I have the car now. They let me drive off with it when I signed that yellow sheet. Now they want me to come back in and sign a new yellow sheet with the new financing and monthly payments ($311 a month at 66 months).

Why did they let me drive the car off the lot if they couldn't get the financing terms I agreed and signed for the day I drove the car off the lot? I've had this car now for a week.

I guess I'm going to return this car and get the one I traded in back.

[thatboyjer]

that sounds awfully odd....

[DMart]

if u signed the paper i dont think they can do anything

[KCALB SIRAY]

Didn't we already go over this before the hack :iono:

[Forrest]

This happened to several people before the posting were lost on this forum. Many of them decided that they were going to tell the dealer they were not going to come back in and if the dealer wanted the car, to come and get it.
Someone also had pointed out that there is a three day period for changes. Have you had the car more than three days?

I would hold your ground.

[TinyGiant]

my payment changed too but i got a letter from toyota motor credit and they actually decreased my interest rate and it saved me $15 a month

[IsLNdbOi]

I've had the car since last Saturday. I've heard about that 3 day thing, but I'm not sure if it works / applies to me here in NV.

[IsLNdbOi]

Hmmm... Just browsed through the state of NV dmv website and found this:

http://www.dmvnv.com/nvreg.htm

Be certain to read and understand the sales or lease contract before you buy any vehicle. Do not sign a contract which contains blank spaces. Nevada does not have a right of rescission or any "cooling off" period for the buyer. Dealers must use standardized contracts as outlined in Nevada Administrative Code Chapter 97.

Nevada dealers must issue the following documents to the buyer:

Copies of any contract, lease agreement, warranty, etc.
A temporary movement placard dated to expire 30 days from the date of the sale
A passing emissions inspection if required
A drive train inspection report on used vehicles which have an odometer reading of 75,000 miles or more
A Dealers Report of Sale (DRS or "green slip")
Dealers may or may not issue the DRS at the time of the sale. If financing on the vehicle has not been finalized, the dealer may take up to 15 days to arrange financing. If financing cannot be finalized, the dealer then has the right to rescind the sale and require the return of the vehicle. Alternately, the dealership itself may finance the vehicle. Or, the dealer may ask the buyer to sign a new contract with different terms. The buyer is not obligated to accept a new contract.


Does this mean that if I avoid them for 9 more days (today is the 6th day I've had the car), they can't require me to return the vehicle?

[Shroomster]

Hmmm... Just browsed through the state of NV dmv website and found this:

http://www.dmvnv.com/nvreg.htm




Does this mean that if I avoid them for 9 more days (today is the 6th day I've had the car), they can't require me to return the vehicle?

that bold section says the dealer will REPOSES THE CAR

[nemelek]

Do the math. 253 X 84 = 21252
311 X 66 = 20526
You save $ 726

I don't think that the dealer is jacking up the interest rate. For an extra $58/month you save $726 and 1 and 1/2 years of payments. Go to your credit union first and see if you can get a better deal. Also 7 years of car payments seem like a long time. 1 in 5 of will probably own the same car 7 years from now.

[Bob_VT]

First of all ....... never finance a depreciating asset for 84 months. That is not right and it should have NEVER been offered. The longer the term the higher the rate!

The change in finance is better for you and it will save you money during the term of the loan.

Financing cars is based on credit history and income. With the present financial crisis that has been going on ..... consider yourself lucky to even get a loan.

How many new cars have you kept 5 years? 6 years? 7 years? What did you trade in? What was the balance due on the car you traded in? If there was anything due on it was it rolled into the new car?

When I was in the car business we knew that any loan over 60 months would bury a person. Do not buy a car with emotion.

What if any "extras" are included? Maintenance? Warranty? GAP?

Going back ...... not too long ago...... 36 month loans were the standard and they slowly moved to 48 then 60. Presently, my bank will not make an 84 month loan unless I borrow over $20,000.

[IsLNdbOi]

I knew it would be cheaper overall w/ the new financing terms they want me to sign. All I added though when going through financing on this car for the first time was GAP. I didn't get any of the extended warranties after seeing ppl's opinions here on these extended warranties

[kimona]

The dealer definitely doesn't want to take the car back; it would have to be sold as a used vehicle. You actually have the upper hand here. I would go back in and renegotiate the terms of the contract, specifically the interest rate in this case.

If you're a payment buyer, then pick a number you're comfortable with; for example $300/mth/66mths. Then, tell the dealer you can only handle handle $275/mth/66mths. Be willing to sit patiently and hold your ground until the finance manager sharpens his pencil. In all likelihod, you will end up leaving with a payment of less than the $311 he's hit you with in the voicemail.

[Bob_VT]

The dealers make car loans on their rate. Ask to see the buy rate and ask for the loan at the buy rate. The dealer still makes a flat fee on every car loan. The buy rate is usually 1 to 1.5% less than whet you are financed at.

[1NZYaris1]

The problem you are facing is not new , but due to the world wide credit crunch , financeing firms are eathier not taking on new customers or shortennig terms to 36 months.
In New Zealand yesterday two car financeing firms closed up shop because they could not get credit from overseas company's.
Also here the Vehicle if purchased with finance will not be released until finance
has been confirmed and paid.:eyebulge:

[IsLNdbOi]

Well, I went back to the dealer this afternoon after first stopping by the DMV across the street from the dealer. The people at the DMV said that I have to accept the new terms of the financing or my registration won't be transferred to the new Yaris. The dealer wouldn't give me the green sleep to do it.

Anyway, I save a couple of hundred with the new financing. $310 a month for 66 months. Right before signing the new sheet, I asked them if they could throw in an extended warranty at no extra charge since they caused me this inconvenience.

They ended up giving me a Toyota Extra Care Gold plan for 6 years / 75000 miles at no extra charge. That's pretty good for me. I owned my previous 3-door LB for 2 years and only had 17.5k miles on it. I'm also getting a refund on the GAP and extended warranty I bought for the previous LB and I don't start paying until mid January.

[TinyGiant]

not too shabby

[IsLNdbOi]

One thing I requested though that I was adamant about was that they get me one with the holes for the front license plate NOT drilled out yet.

Well, when the one I had was rolled off the truck the holes were drilled out! So, right now I've put the license plate frame screws into the holes to cover them up and then put the chrome screw covers over them. Doesn't look too bad. Their collision center and body shop is supposed to "fix" the holes next week and they're giving me mud guards and a rear bumper protector.

[1NZYaris1]

Well done , now sit back and enjoy the mods to come

[darthbauer]

They changed my contract after I had already had the car for a few days. I was OK with it though cause it ended up saving me money too. Good job on getting the extra warranty at no charge.

[SilverBack]

Reporting it to the BBB does sound like a good idea because what they're tryin' to pull just isn't right. It's also a great idea to go to bank and try to get the car re-financed. This way TFS or TMCC can't mess with you since you would no longer have a loan account with them, and it would change the loan terms of the remaining balance for the better, mainly the interest rate and to a lesser degree the pay-off date. Bought mine back in May and had a payment of $203/month for 7 years with TFS (after I managed to talk my way down from $275/month, which just wasn't gonna happen). Ran to my bank to re-fi it 2 months ago and now my payment is $185/month for 6 years. Makes a big difference! For those who are looking to buy a new car, I strongly suggest that you don't make the same mistake I did and go with the dealer's finance company first! Go to the bank to see if you can get approval before resorting to the dealer. Dealers will always try to screw you over, so do your research and don't give in! Hope this helps.

[specialeducator]

I went to the dealer and informed them that I had my own financing through my credit union.They ended up beating the CU's rate by a hair. Doing this also removed monthly payments off the negotiation table. I simply told the salesman that there were only two figures I needed to see- the selling price of the Yaris and the trade in offer.

[nemelek]

Well, I went back to the dealer this afternoon after first stopping by the DMV across the street from the dealer. The people at the DMV said that I have to accept the new terms of the financing or my registration won't be transferred to the new Yaris. The dealer wouldn't give me the green sleep to do it.

Anyway, I save a couple of hundred with the new financing. $310 a month for 66 months. Right before signing the new sheet, I asked them if they could throw in an extended warranty at no extra charge since they caused me this inconvenience.

They ended up giving me a Toyota Extra Care Gold plan for 6 years / 75000 miles at no extra charge. That's pretty good for me. I owned my previous 3-door LB for 2 years and only had 17.5k miles on it. I'm also getting a refund on the GAP and extended warranty I bought for the previous LB and I don't start paying until mid January.

Great job on negotiating! You turned a bad situatition into a win/win.

[Jem_hadar]

Well done, ser! ^5

[Chubbster]

I had this same thing just happen to me. Last Saturday, my husband and I went to the Toyota dealership and I fell in love with a Yaris. We walked out with a 2008 Yaris and payments of $297/month for 72 months. We also had purchased the extended warranty, gap, and oil change/maintenance service.

About 4 days later I receive a call from the dealership telling me that we were approved but not under the same terms and we had to go back in. I did not know we were subject to approval and thought that when we signed the papers and left everything was finalized. They never told us that we were subject to approval. So when we got off the phone we were livid. We went to the dealership and they told us that we had to have a higher interest rate increasing payments to $324/month. After much talking they said they could get it to $315/month. I know it's only $18 more a month, but it's the principle. I never heard of this practice before. We told them we would go get something to eat to talk about it and come back in a few hours.

We decided that if we couldn't get what we were originally approved for then we would go elsewhere. So we went back and handed them the keys. Not 2 minutes later we get a call from the dealership asking us to come back. They said that they couldn't get us a lower rate but they could lower the payments by giving us the extended warranty, gap, and maintenance at cost. We walked out at $296/month, a dollar less than original.

[nemelek]

It's a buyers market. Glad to see you take advantage.

[1NZYaris1]

well done :clap::clap:i hope you get a lot of pleasure from your new yaris,
and thank you on behalf of all the members here in posting this out come,
for all to see:thumbup::bow:

[cleong]

They needed you to buy the car more than they needed the car back on the lot unsold. Good on you for standing your ground, you ended up calling their bluff.

[oilman930]

The dealership sold you a car using the technique called a "spot sale". This practice is illegal in in few states because of the problems that you ran into.

While the dealership ran a credit check on you for the two hours that you were at the dealership, that isn't enough time for the banks that deal with the dealership to run your credit and come back with the proper term for a loan.

I am glad you were able to work it out with the dealership. A word of advice for anyone who wants to buy a any car from the dealership. They should expect to wait anywhere from 5 to 7 days from the time of picking out the car to actually driving it off the lot. Just to make sure that all the paper work is done properly and that all the terms of the loan are worked out by the bank.

Enjoy your new car.