Dealer playing with finance terms

[rickinAZ]

Are you sure that you are analyzing the numbers accurately? I ask because the $5,000 item seems to be going your way. Perhaps once the dust settles you have been made whole. If you have a friend/relative that's good with numbers, you may want them to review the specifics thoroughly. I'd make absolutely sure that you've been financially victimized before escalating to the next level.

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[Kev312]

What??? Wait, an APR of 11.1%???? I haven't heard of an APR that high in 30 years (and I've purchased 8 or 9 vehicles during that time). Are you sure that's what it is? That sounds either 1) wrong, or 2) you have a relatively low credit rating.

Also, can you clarify: if the dealer kept the payments the same but gave you an additional $5000 discount, it would seem the only way for that to work would be that they also had to reduce the NUMBER of payments. Did they do that?

it was actually at 11.1. My original approval was half of that at 5.5 and and I had an approval of 6 that I walked in with. When I got the new loan information from Ally I automatically looked for the APR which doubled. So what the dealer did was discount $5,000, doubled the APR and had the loan term go from 72 to 75 months.

 

[Kev312]

Are you sure that you are analyzing the numbers accurately? I ask because the $5,000 item seems to be going your way. Perhaps once the dust settles you have been made whole. If you have a friend/relative that's good with numbers, you may want them to review the specifics thoroughly. I'd make absolutely sure that you've been financially victimized before escalating to the next level.

i had someone look it over with me. Both the contract to verify that they were out of their minds by doing this and to verify numbers. I also was told the same thing when I heard back from the regional manager for the dealer group. He basically verified that the finance manager tried to increase the amount of the finance charge he got to keep as profit.

 

[dgoodhue]

Just refinance your Jeep’s loan and be done with it.

 

[Hootbro]

What is your credit score? Sounds like a combination of subprime lending and normal military town dealership shenanigans.

Like someone else mentioned, talk to your local JAG or military legal aid office. In many installations, they get enough complaints logged against a certain off base business, they will put them on a "Off-Limits" list and then the dealer will be shitting bricks trying to make up getting off the list.

 

[LooselyHeldPlans]

Oh they actually reduced by $5,000 but doubled interest rate.

That’s exactly where I’m at. I was highly upset. The new APR they assigned me was 11.1 and they started to tell me it didn’t affect anything and what I should focus on was that my payment stayed the same. Which is horse crap.

If your payment stayed the same and your loan amount was reduced, this is a very good thing for you and it’s annoying as hell this didn’t come out until 3 damn pages of people trying to help you.

 

[rickinAZ]

i had someone look it over with me. Both the contract to verify that they were out of their minds by doing this and to verify numbers. I also was told the same thing when I heard back from the regional manager for the dealer group. He basically verified that the finance manager tried to increase the amount of the finance charge he got to keep as profit.

So...do all of the unusual changes, when netted out, make you ahead, even, or behind? That is the main question. How you got there may be suspect, but if the changes are a zero-sum game, you're whole. Unless you are really good with numbers, you are better off with your credit union.

 

[Archie PJ]

it was actually at 11.1. My original approval was half of that at 5.5 and and I had an approval of 6 that I walked in with. When I got the new loan information from Ally I automatically looked for the APR which doubled. So what the dealer did was discount $5,000, doubled the APR and had the loan term go from 72 to 75 months.

Sounds like the dealer worked to make an adjustment for you. However, it certainly does seem very shady to switch lenders, particularly when the apr is double. Best of luck with this.

 

[Archie PJ]

If your payment stayed the same and your loan amount was reduced, this is a very good thing for you and it’s annoying as hell this didn’t come out until 3 damn pages of people trying to help you.

I would think the OP would have to look at the entire "schedule" of payments over the life of the loan using both loan interest rates in the review. Sometimes you may be paying interest on the "unpaid balance" which obviously is higher at the beginning of a loan than at the end; this can heavily be affected by the interest rate. Where this can be a factor is if the loan is paid off early: eg, if one pays the loan off at 36 months 1/2 way through a 72 month loan, potentially only 1/4 of the principal may have been paid, with 75% still owed.

As mentioned, the comparison of "remaining balance to total dollars paid" over the like of the loan or until paid in total early would tell the story.

 

[Namakan]

it was actually at 11.1. My original approval was half of that at 5.5 and and I had an approval of 6 that I walked in with. When I got the new loan information from Ally I automatically looked for the APR which doubled. So what the dealer did was discount $5,000, doubled the APR and had the loan term go from 72 to 75 months.

I'm sure the numbers are slightly different but I ran a quick calculation and got the following:

72mo loan of $50,000 @ 5.5% would have a payment of $816.89 and end up costing a total of $58,816.39 over the life of it.

75mo loan of $45,000 @ 11.1% would have a payment of $834.66 and end up at $62,599.60 total.

In short a loan amount of $5,000 less with the higher rate and slightly longer term would definitely cost you more in the end.

 

[IAJeepguy]

I'm sure the numbers are slightly different but I ran a quick calculation and got the following:

72mo loan of $50,000 @ 5.5% would have a payment of $816.89 and end up costing a total of $58,816.39 over the life of it.

75mo loan of $45,000 @ 11.1% would have a payment of $834.66 and end up at $62,599.60 total.

In short a loan amount of $5,000 less with the higher rate and slightly longer term would definitely cost you more in the end.

This right here… went through every post before finally seeing someone mention the overall cost break down… 5k off isn’t necessarily a “deal!” Especially when the apr is doubled. Definitely refinancing with navy fed or even penfed would be the way to go. They both have great rates.

 

[Namakan]

On another note if the dealer discounted the price $5000 to make this work out you should double check the amount of tax you were charged.

We’re you charged tax based on the original sales price or the discounted price? If you were charged on the original and they report the discounted amount to the state then someone is pocketing the difference.

Depending on your states tax rate this amount might equal 1/2 a payment.

If they forged your signature on the new Docs then you are holding all the cards. Can you show the signature on the docs with Ally EXACTLY matches another signature you made somewhere else with them?

 

[Kev312]

I'm sure the numbers are slightly different but I ran a quick calculation and got the following:

72mo loan of $50,000 @ 5.5% would have a payment of $816.89 and end up costing a total of $58,816.39 over the life of it.

75mo loan of $45,000 @ 11.1% would have a payment of $834.66 and end up at $62,599.60 total.

In short a loan amount of $5,000 less with the higher rate and slightly longer term would definitely cost you more in the end.

Sorry y’all I forgot about this once I resolved my issue. This is what I was focused on. I intend to pay it a lot quicker than the 72 month schedule so the interest paid was a big deal to me especially since I don’t plan dumping big payments into interest instead of principle. (Ally doesn’t allow principle only payments). And for the person who asked about taxes. In Missouri the taxes get taken care of at the DMV the dealer doesn’t charge them.

 

[N3mesis]

Back in April I picked up a brand new off the lot Jeep. Everything was fine and dandy the contract I signed was good to go. A month after the contract was signed and the same day I picked up the title so I can take it to the dmv for registration, my co-applicant was contacted by a new bank that our loan was now through them. This happened a month after we had already signed a contract.

There’s been huge changes to the deal such as; amount financed by $5,000, apr doubled and loan term changed by 3 months. Now I understand that the dealer has a right to change the loan if they need to. But they have refused to explain why everything has changed so much. They also are refusing to provide me the copy of the new contract that I am entitled to. I also never signed the new conditions. There’s a segment in the contract that I have now that says that any changes have to be signed and agreed upon and I have to receive my copy. And none of that happened. I know I’m all over the place but I’m just ranting I guess. I’m not here for legal advice obviously, but what do y’all think? And have you ever been in this situation?

TLDR; dealer changed financing terms and bank a month after, gave me the title with the original bank on it as lienholder but changed my loan and they won’t explain why so many drastic changes happened.

I saw this video the other day. Doubtful the dealer will ever admit to any wrongdoing but you having a signed contract different from what the finance company has is a clear indicator of dealer fraud.

 

[viper88]

If there's a lesson in all of this it's to never, ever deal with a Napleton dealership no matter where they are located. (Do yourself a favor and google Eddie Napleton (owner's son))

I made the grave mistake of purchasing a JT from one of their Chicago locations. 100% shady AF after things were signed. Contacted the GM and was given the run-around. After 4mos of back and forth I finally e-mailed the owner (had to try every possible derivative of his name/e-mail as it wasn't readily available), and there was finally a solution.

Never, ever, ever deal with these clowns

Looks like the owner's son is a class act. He is also married to the daughter of ex-Chicago Bears Head Coach Dave Wannstedt.

https://www.napletonsautopark.com/eddie-napleton.htm

https://www.wptv.com/news/region-c-...r-dealer-sued-following-sexual-assault-arrest

https://www.palmbeachpost.com/news/...m-refusal-to-testify-in-boss-sex-assault-case

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