one of the questions on here was very interesting and doesnt seem uncommon. that is after the financing company realized that there was other closed accounts, can they really raise interest rates like that?
2007-02-27 07:25:09 · 13 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
it's not a trick, as someone else stated. what has happened is that the bank has denied your contract. the reason your rate is higher is that you were not approved at the level your finance guy had hoped for. happens all the time in the car industry, and happens the other way more often than you think as well. about 40% of the re-contracts that i have actually end up with lower payments than originally agreed upon.
2007-02-27 10:04:38 · answer #1 · answered by michael_oxgood 4 · 1⤊ 0⤋
If the dealership did the paperwork, and had you sign it without a final approval from Toyota, then yes, they can change the interest rate and make the dealer recontract you.
Most people do not realize that dealers do "spot deliveries", where they do all of the paperwork, finance contract, etc. without having an approval from a lender. Then if the lender changes the terms of approval from what the dealer submitted, then the dealer must recontract the customer in order for the bank to fund the loan.
2007-02-27 07:55:19 · answer #2 · answered by Robert S 3 · 0⤊ 0⤋
Unfortuantely this is a common trick- they raise the interest later, as if they didn't see something or know about some closed accounts. And yet they DID pull your credit when you were at the lot. It's a shady practice.
It's a better idea to get your funding outside the lot-- somewhere like eloans or lendingtree or capital one-- especially if you have challenged credit. They bank on the fact that you still want the car and will just sign whatever, and then the dealership sells your now higher rate loan to a second lender at a profit.
2007-02-27 08:38:55 · answer #3 · answered by Anonymous · 1⤊ 0⤋
This is why its best to go to your bank and take care of the financing yourself days in advance of buying the car. Find out what kind of car you want, maybe test drive a few here or there. But tell the dealer you will be taking care of the financing yourself at your bank. If he tries to pressure you into letting them do the financing and driving the car home today tell him he is about to lose a sale, that you can go to 100 other car dealers to buy a car if you please. Take care of your financing at your bank. Get your loan squared away, then go pick out the car you want.
2007-02-27 07:53:26 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Probably, Believe it or not I am an attorney and most Contracts for Credit contain a clause that "the terms may be subject to change"-meaning that the Corporation can increase it whenever they want. Unfortunately they have all the power. It sucks and I hate it also.
2007-02-27 08:11:09 · answer #5 · answered by Anonymous · 1⤊ 0⤋
ALL CONTRACTS HAVE FINE PRINT WHICH SAYS
"SUBJECT TO CREDIT APPROVAL"
This is why dealers let people drive off with the car even when banks are closed on weekends and after hours. They know if financing falls through, they can take the car back!
So unless you got a welcome letter and payment book from the bank you need to take the car back or agree to the new terms.
2007-02-27 07:42:06 · answer #6 · answered by Anonymous · 1⤊ 1⤋
It must be in the fine print somewhere. Credit cards can change their interest rate as long as they notify you before the change takes place.
2007-02-27 07:29:04 · answer #7 · answered by lcritter55118 4 · 2⤊ 1⤋
simple way to find out is read your contract...seems you did not before you signed it...has a variable rate they sure can....up to the state legal limit...most states are 25%...better do some reading...
2007-02-27 07:32:20 · answer #8 · answered by Michael K 5 · 1⤊ 0⤋
If you application had false information they would just void the loan. Also, itr depends on what the stipulations of the loan states.
Thats why you should ALWAYS read the entire loan, not just skim over it.
2007-02-27 07:28:23 · answer #9 · answered by matt_archbold2002 4 · 1⤊ 1⤋
they probably have some language in the contract saying they can raise the rates under certain circumstances. If not, you should fight it.
2007-02-27 07:28:36 · answer #10 · answered by Rossonero NorCal SFECU 7 · 1⤊ 1⤋