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Was I taken Advantage of by the Cadillac Dealer

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    Was I taken Advantage of by the Cadillac Dealer

    The Cadillac Man Did Me In

    --------------------------------------------------------------------------------

    I am so mad with myself, but being unfamiliar with the process and having filed a Chapter 7 two years ago, well....I guess I will have to live with what has happen to me. For the last two years, I have been able to pay my car note on time with no problems to GM. I was leasing a car and had A-1 credit in 05 when I got it, however my children being diagnosed with autism caused our family major financial problems and I had to file.

    Since that time, I have been saving, watching my pennies, not being late on any bill and since I had nothing to pay except rent, car note, car insurance, light, gas and phone, I paid these on time and really thought I was doing good at rebuilding my credit and my credit score. Last year when I heard that the car companies were going under, I was under the impression that researching and checking to see if this problem would be of a benefit to me as an American person, imagine my surprise when my lease was up and I had to return my vehicle to Cadillac and was told that nobody was leasing a lot anymore because the car companies had lost loads of money on leases. Of course I believed this because this was GM and the Cadillac dealer. Why would they try and use me since I had never missed my car note.

    But of course them about to go under(GM) and helping people do not go hand in hand. I should have known better. Well, let me tell you guys what happen to me and maybe I am in the toilet and maybe I can do something to help myself as this issue is only 2 weeks old. I returned my Cadillac leased vehicle to Cadillac in Chicago two weeks ago. While in the dealership, I came across the nicest or what appeared to be salesman and he insisted that they were working on trying to keep me from being without a car since leasing was not in the cards as they said. I did the paperwork to return the lease and waited until they "crunched some numbers" as the salesman said.

    After being in the dealership all day(8)hrs and many phone calls and cups of coffee later, I was sold a 2006 Cadillac with 8772 miles on it. The car cost 25,000 dollars. At first since my car turned in was a 2005 with 38,000 miles on it, I thought I was getting a pretty fair deal. But the interest on the car was unbelievable. Not only that, but the salesman told me that GM would not finance me again for another lease, but if I was able to buy a used car, how come they could not finance me for that?

    Also, my old interest rate was 10 percent and of course I did not expect that again, but I never thought I would end up with 20 percent interest rate. Is this what bankruptcy filers should expect from car dealerships. This Cadillac dealership has a good rating with BBB. Nothing but rave reviews. However I still feel I was ripped off unless you guys can convince me that there was no other way. Also, by the time the finance guy at Cadillac came back in to talk to me, he also told me that Capital One was the only people who would take the deal and since I know that I was in to them for 8,000 dollars, somehow I just know that they tacked that amount on to my car deal. I can not prove it, but I know it deep down in my gut. So two things will happen here since the final amount I pay back over 72 months in interest is more than the car is worth, I am either going to the local investigative television stations and have them check my story for the legalities involved, or I will listen to you guys if you say that in these 2 weeks and I.m not satisified with this deal, there is absoultely nothing I can do. Somebody please talk to me. I am stressed out. They would not even make the car certified used, just pre-owned used and the difference between those two is the warranty. That was the most inportant thing I needed.

    #2
    Maybe I am missing something in your story, but just say no to the deal, walk away and try to find a better deal.

    Comment


      #3
      Am I understanding you right that you bought the car, financed at 20%?? If so, I doubt you can take it back after 2 weeks... ouch!
      BKForum Blog: The Journey

      sigpic

      Comment


        #4
        Also, my old interest rate was 10 percent and of course I did not expect that again, but I never thought I would end up with 20 percent interest rate
        -------------

        This sentence makes me think she did not buy the car yet, because if she knew the high rate ahead of time and bought the car anyway, why would she say this?

        Unless...she signed a contract and bought the car with the stipulation that no matter what the rate, she would agree to purchase. But, she sounds too smart for this dealership tactic.

        Comment


          #5
          OP, you got hosed by the dealership with both the rate and the length of the loan. A car loan really should never by longer than 36 months, maximum. Remember this, never accept dealer financing. When you buy a car, do not do the financing from the dealership. You do that by getting a loan first with a CU or bank and then you shop within your budget. (Sometimes you can get an approval from the bank/CU and use that to force the dealership into a better rate - but don't count on it).

          The dealer makes money 3 ways on a car: 1) if you trade in your vehicle - they give you little to no value for it 2) the vehicle itself and 3) the financing. Actually for the dealership the financing is where they make the most $$$. That's why they kept you in there for 8 hours - to wear you out so you did not pick up on their tricks. The dealership gets a kickback from the lender for charging you an extra high interest rate - it is referred to as premium par rates. What that means if the par rate is 6% anything over that generates a direct cash payment for the dealership from the lender for getting someone to pay that outrageous amount. Most dealership finance guys work on our self esteem (more accurately our lack of self esteem) to really hose us with the rate.

          Believe it or not, there is an excellent video on how to buy a car right in this forum (look under the section on buying cars post BK).

          If you bought this car already (I hope not) - all you can do it hopefully refinance it with an outside loan (if the value is there). Hopefully you have not actually purchased this vehicle.

          One of the most powerful things I have learned when buying vehicles is to walk away. Never, never buy on the first trip to the dealer - make them beg you to come back and you will see much better deals. Better yet - stay away from dealers and buy privately.
          Filed CH 7 9/30/2008
          Discharged Jan 5, 2009! Closed Jan 18, 2009

          I am not an attorney. None of my advice is legal advice in any way..

          Comment


            #6
            Starting over, I need to disagree with some of your post, I will respond further when I have more time,

            Comment


              #7
              Well HHM, I await your comments. I was just going on my various car buying experiences.
              Filed CH 7 9/30/2008
              Discharged Jan 5, 2009! Closed Jan 18, 2009

              I am not an attorney. None of my advice is legal advice in any way..

              Comment


                #8
                SO, are you talking just for people with BK's?

                I haven't bought many new cars because I tend to keep them awhile, but I always told the dealership I was paying cash and then negotiated the price.

                Then I simply changed my mind and decided to finance the car. My present car is financed at 1.99% and daughter just got .99%. Before the meltdown, with excellent credit, there were some good deals out there on financing.

                Comment


                  #9
                  Originally posted by fltoo View Post
                  SO, are you talking just for people with BK's?

                  I haven't bought many new cars because I tend to keep them awhile, but I always told the dealership I was paying cash and then negotiated the price.

                  Then I simply changed my mind and decided to finance the car. My present car is financed at 1.99% and daughter just got .99%. Before the meltdown, with excellent credit, there were some good deals out there on financing.
                  No, I am talking about all car buyers. Its just that for people with BK's we have to be extra cautious because the dealership will 'guilt' us into paying a higher interest rate because we think that is the price of BK. There probably is a price - but is the price 1% over par or is it 10% over par??? If we let them, the dealership will make it 10% over par.

                  Actually, you can do the car price a little better (when paying cash) by letting the dealership think you are going to finance it (without running your credit of course) and negtiate the price. Usually they will move a little further if they think you are going to finance it because they make that extra money in the financing - then if you elect to pay cash instead you have a much better deal. If you notice, especially on the zero down, zero interest rate (or the !% rates) the dealership is not that flexible on price. The dealer is always looking at the three items he can make a profit on: your trade, the financing and the car. There is no question that the best way is to buy cash. But the next best way is to walk in with financing from an outside source (bank or CU).
                  Filed CH 7 9/30/2008
                  Discharged Jan 5, 2009! Closed Jan 18, 2009

                  I am not an attorney. None of my advice is legal advice in any way..

                  Comment


                    #10
                    I agree with StartingOver....the dealerships do not have our best interest where it concerns getting the best interest rates. Similar thing happened to me when I bought my car a yr before bk. I promptly turned around and refinanced at a much better rate with a CU at less than 7%- big lesson learned. OP - try going to some credit unions to see if they will let you refinance at a better rate. 20% is outrageous.
                    Filed Chapter 7 Pro-Se May 29, 2008
                    341 July 1, 2008
                    Discharged September 4, 2008
                    Closed November 10, 2008 :-)

                    Comment


                      #11
                      Car dealers work for the guy with the horns wearing a red sut with a tail.
                      Golden Jubilee was a year-long celebration held every 50 years in which all bondmen were freed, mortgaged lands were restored to the original owners, and land was left fallow: Lev. 25:8-17

                      Comment


                        #12
                        Originally posted by HHM View Post
                        Starting over, I need to disagree with some of your post, I will respond further when I have more time,
                        Oh, HHM...this is just mean, LOL! Please don't keep us hanging too long

                        Comment


                          #13
                          I took my 2005 Taurus into Ford dealer to have heater fan relay replaced last month. My hubby and his friends had researched it and diagnosed the problem. Dealer service department mechanic came out and said they replaced the relay but it would still not work...it was the heater fan motor and an extra $250. I said go ahead and replace it and while I was sitting there waiting, it just popped into my head to ask for the old motor so my husband could look at it. She himmed and hawed around for a minute but then said there was no trade-in on it so I could have it. SO THEN...they gave me the old motor but said that the mechanic accidentally dropped it and the casing got cracked. GEEZ.....

                          So by then my rip off radar was going tilt and I took it directly to Auto Zone and one of their salesmen took it and hooked it up to one of their batteries using alligator clips.

                          Wouldn't you know it.....it revved right up, not once but three times. There was nothing wrong with that motor.

                          I took it home and gave it to hubby who was at their door 8 AM the next morning. He got all of our money back but only if he turned over the old motor. Gee...wonder why???

                          So we got a new heater fan motor for the car free.

                          The moral to this story.....ALL of the auto dealers are hurting and (some) will do anything to make a buck. BUYER BEWARE!! Don't make snap decisions and know what you can afford and what you can pay BEFORE you walk in.

                          D...

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