Just noticed extra dealer fees. What can I do?

My understanding of finance charges: they are what you pay over the entire term of the loan. I could be wrong.

OP, could you post a picture of that portion of the contract?

Charges for additional items like tax, title, license, fancy dice for your mirror, gap insurance etc etc are all usually listed clearly and verbally mentioned.

Every time I have purchased a car off of a Toyota lot (4 Toyota's in the last 6 years & 3 dealers) the finance person went over EVERY line that required my signature or initial.


Enjoy the new truck!

 

That’s bullshit also. It’s part of the “sign and drive” concept dealers have adopted to get sales flow. What really happened is that your loan was submitted after you took the keys and left, and then the lenders didn’t want your loan and couldn’t approve you. So they had to find someone who would, and you had to redo paperwork to submit for that loan. Either that or they call you and tell you to return the vehicle because you can’t get credit approval through their lending options - which also happens.

Loan offices aren’t open 24/7, so if you buy a car in the evening the dealership isn’t even submitting your contract to lenders until the next business day. Again, they can be denied and are frequently with poor credit and low down payment buyers.

 

Lesson learned for the future.

Always refuse to pay any “fees” including paperwork fees.


Took my little bro to buy another old used car the other week and the guy wanted to charge him a $100 “documentation fee”. When my brother asked him what that was I immediately interrupted the salesman and said oh that’s just them passing their business expenses down to you even though you didn’t decide to open a business. We won’t be paying that, obviously. Kid left and came back and it was gone ha.


Never ever pay business expenses unless it’s your business. They need to give a bottom line where they profit and make it worthwhile to themselves, and they do.

I don’t charge my photography clients a separate fee for the ink cartridges that were used to print their contracts or for the internet bill I used to upload their files. Those are MY business expenses. Not theirs. Cheers.

 

Here are pics

 

OP, what you're seeing likely is the truth in lending forum that discloses the amount of interest you will pay over time if you choose to make all payments on time, and not early. This is a common form for all purchases via installment loans which have a interest element. They are letting you know how much the interest will cost you over the life of the loan.

If you're curious, take the monthly payment and multiply it by the number of payments (6 years = 72, 6.5 years = 78, etc). Then, subtract that number from what you "signed" for it. That's the amount of interest you will pay if you never pay it off early or put addition principal down each month.

 

Just curious, 3.49 with good credit? I thought the 2020s were 0.9%@60 months right now, my 19 was 1.9%@60 with 786 FICO. I do know the SW region has shi*ty promotion rates compared to others.

 

Ok, I looked at your form, you're fine. That's the cost of interest. If you don't want to pay that, buy the vehicle in cash. If you want to pay less over time, put additional principal down each month...but we mindful that most places will just put the extra down towards next month's payment, and not principal. You'll want to understand the difference.

 

72 months. I took the lowest rate at the longest term. I'll put my money into the stock market if I think I can get an ROI higher than 3.49%. if not then i'll pay off this loan. I like the flexibility of this strategy.

 

This, yep they didnt scam you, your just reading it wrong. As fajitas said, total interest or "charge" over life of the loan.

 

Damn, $600 a month for 75 months.

 

Oh totally get that, all about the money podcasts, cheap money right now for loans.

 

Guessing he wont carry it out, hopefully.

 

Yes, I understand the difference. I got a letter explaining this. If I want the additional payments to pay down principal I have to mail in a letter to Toyota. I guess they want to make it as difficult as possible.

Rates are going up as far as I have heard. My Credit union could only offer me 3.6%. Toyota was offering 2.9% or 750 rebate.

 

Yea they aren't interested in you doing that cause that means less interest for them over time. So I'm not shocked they make it difficult.

 

They say that but news has been toting feds will keep the rate down again. We shall see, and every region is different. Midwest has 0.9% on 2020s and 1.9% on 19s for promotional rate, back in AZ it was 2.9% just a few months before I moved.

 

I noticed it but didnt want to say anything, thats step even for the 10 or 8 yr/125k platnium. Thats where they got him.

 

There are two sales when you buy a vehicle. The one that wears you down (the vehicle sale), and the really hard sale that occurs in the finance office. That's the tire warranty, windshield warranty, extended warranty.

The sales people make a few bucks off your sale, but the finance guys make a mint off upselling the rest. If you're unhappy with the cost of that extended warranty you can likely cancel it, and the amount will be pro-rated back to you (since you've used nothing, likely you can get it all), and the finance guy will receive a charge back, which will make him unhappy.

 

I opted into that. It covers the car bumper to bumper for 7 years or 100k. For my life situation right now I need reliability and dependability so it was worth it to me.

Well guys, sorry for the false alarm. When I noticed the charges I googled "dealer finance charges scam". It can be a legitimate issue with some dealers. I got a hell of a deal on the truck (15% off MSRP) so in the back of my mind I thought it must have been too good to be true. I put 2 and 2 together and assumed they added that "finance charge" to get their money back on the deal.

 

Can you get those third party or do you have to negotiate at time of sale?

 

Extended warranty most likey... he needs to kill that and shop around. Can get that for around 1500non average.