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Old 10-22-2018, 09:50 PM
 
2 posts, read 1,109 times
Reputation: 10

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Okay so I'm new to this and wanted to know what I can do in this situation...

Recently purchased a car at a Subaru dealership in Oklahoma a few days ago. Let's say agreed upon sales purchase agreement the car was $28,500. I put down $16,000 so the remaining balance would be $12,500 to finance. So after signing off on those terms, the finance manager began selling me on extended warranty. I refused multiple times to purchase it and I thought I wouldn't have to worry about it again during the paperwork process.

I go on to sign physical documents like disclose of insurance, etc. And out of nowhere, he then tells me I have to electronically sign a few other documents (I was never shown what those documents were). I was naive to think that this was just a normal process at the time so I just signed away without knowing what it was.

As the deal was completed and as I was on my way out to drive home my new car, I realized he had not given me some sort of loan contract that states the APR, interest owed, etc. So I had to go back into the dealership and ask the finance manager to provide me the documents. I then went home without looking at the document right then and there.

After settling down and looking over paperwork, I noticed that the loan agreement shows that the remaining balance to be financed was $15,000 instead of $12,500. I called the dealership and found out the additional $2,500 was due to the finance manager adding extended warranty into the deal even when I had told him I didn't want to purchase it.

It then dawned on me that this loan agreement was one of the documents that I signed electronically. It was never disclosed to me at the time of signing. No walk through or explanation of this document during the process. Learned of it after the fact unfortunately.

So here I am feeling really really really dumb for not being more careful in these situations, I shouldn't have believed the finance manager would have my best interest. Instead, he found a way to screw me on the deal, shady. Hard lesson learned.

They gave me 2 options to correct this issue. 1) Sign a revised loan agreement without the extended warranty or 2) Cancelling the warranty to get a refund towards the current loan

I wanted to do option 1, but since I'm in another state. I would have to come in and sign the loan agreement in person, which I can't do. They claim that the document can't be sent to me to be electronically signed (not sure if this is true).

So to sum it up, I guess the best thing I can really do is cancel the warranty right? (lol)

P.S. call me a dumbass for not looking through documents that I'm signing. So much regret
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Old 10-23-2018, 07:11 AM
 
Location: Philadelphia/South Jersey area
2,843 posts, read 1,382,792 times
Reputation: 9966
Won't hear me call you a dumbass. I hate the fact that car buying is one of those deals where they shove mountains of forms at you with very little time to read it.
I haven't purchased a car in a few years but I shudder at the process.

Last edited by eliza61nyc; 10-23-2018 at 08:00 AM..
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Old 10-23-2018, 07:49 AM
 
Location: 5,400 feet
2,578 posts, read 2,555,210 times
Reputation: 3604
The universal rule is never sign anything you haven't read and/or don't understand, even if you have sit there for a long while and tie up everyone else's time.



Cancel the warranty and have them apply it to the loan principal (not to the payments due). Get written documentation of everything. Find a more reputable car dealer.
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Old 10-23-2018, 07:56 AM
 
3,867 posts, read 2,719,426 times
Reputation: 7111
What about the other expenses, the sales tax, license plates, registration, credit insurance etc? Is that also part of the extra $2500?

I'd cancel the warranty, sounds easiest.
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Old 10-23-2018, 12:49 PM
 
Location: Florida
4,317 posts, read 3,653,404 times
Reputation: 4019
Probably very common as most of us do not take the time to read the documents but we should. I once tied up a group of attorneys for a day as I read every document for the purchase of a building. All were advised that any document that needed signing was to be presented two weeks in advance. Blanks were acceptable if the dollar amounts were not known. They did not present any documents and their client had to sell so they were stuck.
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Old 10-23-2018, 03:30 PM
 
Location: Northern Virginia
5,083 posts, read 5,355,287 times
Reputation: 12586
Quote:
Originally Posted by KaraG View Post
What about the other expenses, the sales tax, license plates, registration, credit insurance etc? Is that also part of the extra $2500?

I'd cancel the warranty, sounds easiest.
Yep. And the “dealer processing fee” as well.

OP, were these fees paid for out of the down payment funds or added to the loan amount?
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Old 10-23-2018, 03:51 PM
 
18,741 posts, read 13,513,404 times
Reputation: 14115
Quote:
Originally Posted by HokieFan View Post
Yep. And the “dealer processing fee” as well.

OP, were these fees paid for out of the down payment funds or added to the loan amount?
The sales price, all the fees, add ons and applicable taxes are added together, down payment subtracted and that’s the amount financed. In other words it doesn’t matter
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Old 10-24-2018, 09:41 AM
 
Location: Michigan
2,222 posts, read 1,445,165 times
Reputation: 5098
There is a reason they are called "stealerships". He got a bonus for selling that extended warranty, which he gets to keep unless you sign revised loan paperwork.
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Old 10-24-2018, 02:32 PM
 
2 posts, read 1,109 times
Reputation: 10
Thanks for the replies and insight on these kinds of situations. I had the finance director submit my cancellation request on the warranty. Going to keep hassling them on the cancellation so I know 100% its being cancelled and not sitting.

And they have yet to give me any of the documents relating to the warranty after I've asked for them, communication on their part has been pretty abysmal...
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Old 10-25-2018, 12:10 AM
 
Location: Aurora Denveralis
8,168 posts, read 2,855,344 times
Reputation: 12211
I don't know why anyone sets foot on a dealership, when knowledge of this kind of economic b**** slapping is widespread.
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