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I purchased a transferable certified used honda pilot on finance from a registered honda dealer on 10/13/2007. I added
Extended warranty.
GAP
Lojack
Replacement insurance
based on the misleading information given to me. Okay I got deceived- first time buyer.
Problem 1
Now I want to opt out of the contract ie have a new contract signed without the above four. I went to the dealer on 10/15/2007 and made my case. Looking at the individual documents, I can opt out within 30 days of receiving these 4 contract. The finance contract has no option for me to cancel/ revoke. The problem is if I opt out from the four, (ie after receiving the documents in the mail); I only get a check for the amount I paid for excluding any finance charges from the bank.
That was the main reason why I wanted to remove these four. To reduce the car loan thus reducing my finance charges and monthly payments. I tell the honda dealer why I want it removed but I'm been told I can't get a new contract removing the above four.
I definitely wouldn't recommend this dealer to anyone but is there away I could void the present contract. I don't like the hassle of going to court, first it's lenghty and may not be economical.
Problem 2
At the honda dealer on 10/15/2007 while fight for a solution for the problem above, the dealer's finance manager corrected my assumption that my loan wasn't calculated using the laws of compounding interest but based on the laws of simple interest. It was clearly written at the top of the bank/ loan contract.
Using Microsoft Excel entered the my monthly payments, bank interest rate, loan amount and time ( number of years to pay off my loan). Also I quickly in his presence tried in vain to inform him that the total finance charge I would pay isn't what is printed on the document. If I use the compound interest formula, the total finance charge I would pay is what is printed on the document. . Either he was pretending or he truly was ignorant of the formula. I plan on getting home and using a financial software to verify my assumption. Buyers are deceived into thinking their rates are based on simple interest but truly it's based on compound interest.
Definitely on all grounds based on the simple interest this contract is invalid. What should I do now. I know
What should I do
Do nothing but reget doing business with this dealer?
Seek a legal help and fight them in court whatever it takes.
Last edited by scirocco22; 10-19-2007 at 11:23 PM..
Reason: edited title so to not name a specific dealer
I would also contact American Honda. I had to call them once and they were johnny on the spot and I walked away happy. American Honda is very big on good customer service.
I contacted the NJ Dept of Consumer's Affairs and all I got was a piece of mail asking we to document with proof what took place. The say they would investigate and the information would become public information. How do "we" get the unnecessary information out of the finance loan amount?.
Absent any misrepresentation as to what you were purchasing (car, warranties, theft protection, etc.) and the exact cost amounts, such as total interest cost, fees, purchase price ... and these numbers were presented to you in writing on the contract documents and purchase order ...
YOU SIGNED THE DEAL, WHICH INDICATED YOUR ACCEPTANCE AND ACKNOWLEDGEMENT OF THE TERMS AND CONDITIONS.
It doesn't matter if the dealer's F&I rep called it "simple interest" or "compound interest" or "whiz-bang hocus pocus" interest. The fact is you were presented with the total amount of your purchases and the fees/interest to finance same, which is a separate matter from the car purchase order, which you apparently also were given. The time to have had your discussion and clarification about the total interest was BEFORE you signed the paperwork. The time to have brought out your calculator, computer, slide rule, ouija board, and abacus was BEFORE you signed the paperwork and accepted the deal. The time to have disputed the fees presented was BEFORE you signed the paperwork and accepted the deal.
What you're now experiencing is called "buyers remorse". In the period after the papers were all signed and you bought a car with a whole bunch of options, you've now decided that you didn't make a wise purchase decision about what the dealer sold you and what you bought. It's not grounds to unwind the financing, nor is it grounds to unwind the financing but yet keep the car without all the options you purchased.
The dealer gets a fee or commission from the financing deal, which is separate from your car purchase deal; at the time the car purchase was completed, the monies changed hands for the amounts indicated. You can't go back in time and now unwind that aspect of the deal, you can only now reduce the total amount to be paid for the car with options purchase.
If still you want to unwind the deal, and the contracts you signed may allow you to do so, then you'd be best off to unwind the whole deal and start over.
I don't know the laws in your state, but ... typically ... a dealer is allowed to retain monies for the use of the car that you've received from the time you left the lot with the car until it's returned, plus any other damages to the car (if any), reconditioning costs, etc. You may find that those legally allowed fees may be in excess of the marginal difference of the deal as written compared to what you'd now like to be paying.
Don't count on Honda making you whole after this car buying experience. They don't keep dealers that operate unethically or illegally; you can bet your paperwork was done in accordance with the car dealer laws of your state, the dealer franchise agreement, and commonly accepted sales practices. Unless you can show they had reasonable cause to believe that you were not mentally or legally competent to sign the paperwork and took advantage of you, you made a legal and binding deal.
This is exactly why I have been pushing the idea around to charge people $500 to buy a car for them. I do the homework...and save you thousands.
Would you or anyone else have been like "yeah do the HW for me and here is $500"?
Probably not...but in this case I wish I could have saved you the trouble, at the same time making myself a nice amount.
Good luck
This is exactly why I have been pushing the idea around to charge people $500 to buy a car for them. I do the homework...and save you thousands.
Would you or anyone else have been like "yeah do the HW for me and here is $500"?
Probably not...but in this case I wish I could have saved you the trouble, at the same time making myself a nice amount.
Good luck
$500 is way too much to charge imo. People don't even want to pay $500 above invoice, so why would they pay you $500 to shop for them? If indeed $500 is some magic price point, then car shoppers should just offer dealers $500 over invoice for the cars they want until a dealer accepts their offer.
$500 is way too much to charge imo. People don't even want to pay $500 above invoice, so why would they pay you $500 to shop for them? If indeed $500 is some magic price point, then car shoppers should just offer dealers $500 over invoice for the cars they want until a dealer accepts their offer.
$500 was just a number I threw out.....sounds nice. But many many many MANY people don't even know what invoice is, or MSRP or ANYTHING.
The OP could have already spent $1500 over a resonable price and not even know it......then you add silly GAP and other fees from the stealership...People pay thousands over what they should have paid.
Some people dont wish to do HW and I think would gladly pay $500 to save $3500. Some people don't have it in them to say NO to stealership fees or have knowledge that they are being lied to.
I just bought a new car and they tried to sell me on the powertrain warranty that was already included. I laughed.
I had a page of spreadsheet with every possible number worked out...already knowing my credit score and options for 48/60/66/72 months.
They went below my price on what I had expected to pay.....Before I had done this I went to a dealership just to get an idea of how much KY they would intend on using. I saved over $5000, thats because I put ZERO down and invested the $5000 double my finance charge so it will end up free and I'd still make profit and HAVE my $5000 after 5 years.
I don't think you are a person I would be talking about.
Like I said, SOME people...and those people would probably think I am trying to rip them off. But when you think about it...saving $3500...give me $500 and spend the $3000 on whatever you want.
This is why there are personal financial planners and stock brokers.
LMAO ... I wouldn't even think of doing the buying service you're doing at today's price points for $500.
That's what I was charging my clients 20 years ago ... and I saved them a lot more than that many times on new and used cars.
The buying public doesn't understand the retail car business and margins ... anybody working at a dealership and bringing all their deals in at $500 over "invoice" would likely be the sales leader.
You can bet the "buying club" negotiated prices have a lot more than $500 in it for them for the deals they set up on new cars.
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