Any car salesmen or other experience people please chime in:

My brother tried to get a new 2007 car and the dealership verbally promised him a 7.9% interest rate on a new car (he has bad credit) based on financing he could have gotten at another dealership but that is subject to new approval. He trades in his car and they agree and drives the car off the lot. 5 Days later they say the best they could do is 17.9%. Not even close.

About 1 week later as the dealership shops around for other banks and BSing around, my brother said he would just turn the new car back in as getting the car was contingent on getting a 7.9% rate. He called and said he was just going to turn in the new car and take his old one back. (He ended up paying his last month payments and over mileage anyway and rolling that into the new car purchase price -I don't even understand his benefit.)They say they already turned the car in to the leasing company thus forcing him to take the piece of shlt financing they offer. -I think this part is BS, but who can he talk to at the dealership to get his old car?

Or any other ideas?

 

verbally promising doesn't mean squat. did he sign something showing that his apr would be 7.9? sounds like a typical stealership ploy to me

 

get it in writing and don't sign anything unless it's exactly what you agreed to and want. period.

dealers are notorious for making verbal promises that don't mean squat.

 

Yea, we are probably going for outside financing first but the key thing here is getting the old car back? Do you think the dealership still has it somewhere in the back?

 

depends...they could've sent it to the auction by now

 

He can turn the car back in for free.

It will be the dealerships loss for mileage and repairs if needed. The dealership know they are gonna take a hit, so they are trying to convince him to keep it or to pay the charges.

The customer IS NOT liable for the loss. He can turn the car in and walk away for free after driving a new car for up to 15 days.

If he owed on the lease, then he may have to cover those costs. The dealer is supposed to keep your trade in on hand just in case something like this happens.


I have seen this happen many times. That is why when I was a finance director I made sure the paper was hung (deal bought) before you drove the car off the lot with EVERYTHING finalized and signed.

 

Word, my brother owes on the lease about 30,000 miles over lease and 2 months payment. That comes up to roughly $6,000 lease turn in fee but that was rolled into the new car financing. The dealer only added $3000 to invoice to settle that. But if they sent it to the leasing company or auction now what?

My thinking is if went through with this deal anyway, the leasing company or dealer would send him the $6,000 bill later on after the leasing company's appraiser took a look at it. I haven't looked at the contract as I am 2000 miles away. He should just buy the car outright from the leasing company and sell it at private party value.

 

30,000 over on a lease? DAMN!!!!! It would have been cheaper to pick up a little honda and put miles on that.


He will be held responsible for the mileage no matter what.


What kind of vehicle was being leased?
What kind of dealership was it turned in to?


BTW - Your avatar is making me hungry. I love little ceasars pizza pizza

 

Thanks for your response, man.

In that case, I hope they still have the car laying around. It is a 2004 S2000 for a New S2000. My brother is very impulsive and getting the old "we'll take good care of you" at the dealership did not help.

 

Tell him to get his old car back and just pay it off. You can refinance the residual of the old leased vehicle, and that takes care of any mileage hits.

Mileage does not matter if you keep the car, only if it is turned back in

 

heh. I guess I could have been in a similar situation to this.

When I bought my car, I came in knowing what I wanted, and already had financing. So I said I'll finance through you if you can beat my APR # on my preapproval. They said they'd do that... meanwhile I took the car and drove it for over a month before the dealership called and said they got financing. The rate was lower. The dealer even paid the first month for me already (but I had to pay them back). All said, I was happy with the turn out - if it didn't work out, I'd use my preapproved stuff.