Car Buying Time

[Townsend]

Is this really how Car Dealerships have gotten? or has it been that long since I have done the new car dance?

Apparently it's been a long time.  They used to be much worse.

"Keys on the roof" was a real thing.

[sauerkraut]

A popular sentiment.  Thus they are no longer made.

Actually no one makes the small pick-up trucks anymore, the Chevy S-10 and Colorado are history as is the Ford Ranger.

[Townsend]

Actually no one makes the small pick-up trucks anymore, the Chevy S-10 and Colorado are history as is the Ford Ranger.

Their cost was almost equal to the full sized and the sales were horrendous.  The manufacturers moved on.

[guido911]

Actually no one makes the small pick-up trucks anymore, the Chevy S-10 and Colorado are history as is the Ford Ranger.

They quit making the Frontier and Tacoma?

[Red Arrow]

Now he is on the hook for a 20 Thousand dollar loan at 18% interest.

This will be a learning experience for him, an expensive one he probably will not forget.

His friend did not do a good job of sanity checking at the purchase.

[guido911]

Last Friday night. My stepson went and bought a car on his own from Jim Norton Chevy here in B.A.
He really didn't want to discuss to much about it because he was wanting to do this on his own.
He had saved up 4500 dollars and went and put it all down on a 2010 Camero.
It took the Salesman over four hours to get him financed. He does not have horrible credit just not enough to do what he was wanting to do.
Now he is on the hook for a 20 Thousand dollar loan at 18% interest. I tried to get him to not sign the final papers but apperently he was told that he already had, but he did not have possession of the car at the time he was telling us this.
He went back to the Dealership and returned with the car. His best friend was also a big player in all of this because he was with him the whole time.
It started to sink in that evening what he had done and he had a anxiety attack and could not sleep all night. He returned Saturday morning and wanted to return the car and found out that Oklahoma is one of the States that does not have a right to recission law.
The sales rep told him that he needs to keep it and have it work towards his credit rating and in a year go to a bank or credit union and refinance it at a lower rate.
Is this really how Car Dealerships have gotten? or has it been that long since I have done the new car dance?

Meh. Sounds like the makings of a civil suit...

[sgrizzle]

Meh. Sounds like the makings of a civil suit...

Not unless they tricked him into it. Can't sue because you agreed to a bad deal.

I would tell him to go join a credit union (if not already) and then in about 30 days, try to refinance at the CU.

[Townsend]

They quit making the Frontier and Tacoma?

Both have moved into a "midsized" class of truck.  They are no longer considered "small" or "entry level".

[Townsend]

If he hasn't already insured the vehicle, he may try calling the lender and telling them he will not insure it.  They may back the deal out.

Worth a shot.

[guido911]

Not unless they tricked him into it. Can't sue because you agreed to a bad deal.

One of the points of the post was deception led to the bad deal. There also may be unilateral/mutual mistake. I've been down this very road a few times, Grizz.

[rdj]

Last Friday night. My stepson went and bought a car on his own from Jim Norton Chevy here in B.A.
He really didn't want to discuss to much about it because he was wanting to do this on his own.
He had saved up 4500 dollars and went and put it all down on a 2010 Camero.
It took the Salesman over four hours to get him financed. He does not have horrible credit just not enough to do what he was wanting to do.
Now he is on the hook for a 20 Thousand dollar loan at 18% interest. I tried to get him to not sign the final papers but apperently he was told that he already had, but he did not have possession of the car at the time he was telling us this.
He went back to the Dealership and returned with the car. His best friend was also a big player in all of this because he was with him the whole time.
It started to sink in that evening what he had done and he had a anxiety attack and could not sleep all night. He returned Saturday morning and wanted to return the car and found out that Oklahoma is one of the States that does not have a right to recission law.
The sales rep told him that he needs to keep it and have it work towards his credit rating and in a year go to a bank or credit union and refinance it at a lower rate.
Is this really how Car Dealerships have gotten? or has it been that long since I have done the new car dance?

That might be an illegal interest rate under usury laws.  Assuming the lender who financed it is licensed to lend in Oklahoma they can exceed the usury rate of 10%, but they have to prove it is a reasonable rate under the circumstances.  An attorney on the board would have to advise on how you could prove the rate was unreasonable.  Personally, the rate is beyond unreasonable.

[Townsend]

That might be an illegal interest rate under usury laws.  Assuming the lender who financed it is licensed to lend in Oklahoma they can exceed the usury rate of 10%, but they have to prove it is a reasonable rate under the circumstances.  An attorney on the board would have to advise on how you could prove the rate was unreasonable.  Personally, the rate is beyond unreasonable.

21% here in OK for auto loans.  Some states are higher.

[rdj]

21% here in OK for auto loans.  Some states are higher.

Thanks for the correction.  The person-to-person rate is still 10%?

[Townsend]

Thanks for the correction.  The person-to-person rate is still 10%?

I'm unaware of a 10% top off on a person to person loan.  

Any of these pop-up businesses can exceed the 21% due to some loophole.  There have been attempts to change that.

[Gaspar]

Last Friday night. My stepson went and bought a car on his own from Jim Norton Chevy here in B.A.
He really didn't want to discuss to much about it because he was wanting to do this on his own.
He had saved up 4500 dollars and went and put it all down on a 2010 Camero.
It took the Salesman over four hours to get him financed. He does not have horrible credit just not enough to do what he was wanting to do.
Now he is on the hook for a 20 Thousand dollar loan at 18% interest. I tried to get him to not sign the final papers but apperently he was told that he already had, but he did not have possession of the car at the time he was telling us this.
He went back to the Dealership and returned with the car. His best friend was also a big player in all of this because he was with him the whole time.
It started to sink in that evening what he had done and he had a anxiety attack and could not sleep all night. He returned Saturday morning and wanted to return the car and found out that Oklahoma is one of the States that does not have a right to recission law.
The sales rep told him that he needs to keep it and have it work towards his credit rating and in a year go to a bank or credit union and refinance it at a lower rate.
Is this really how Car Dealerships have gotten? or has it been that long since I have done the new car dance?

Always been that way.  It's part of the game. Doesn't matter if you are a kid or an old fart.  The initial qualification phase of the sales process is to figure out how much they can squeeze and what is your tolerance for outrageous financing.  When/if I buy a car with credit, I visit my bank first and show up at the dealer with all of the financing already approved.  I also have the final price I am willing to pay for a vehicle, and typically end up walking away, only to be called back as I get in my car to leave, or sometimes even the next day.  The math is simple, each customer on the lot represents thousands of dollars in advertising expense.  If one walks because you won't drop your price, you not only lose the sale, but you lose the thousands of dollars it took to get that person on your lot.

My favorite is when they come out with the little piece of paper (after negotiating price) and show you the "additional expenses" and processing fees.  My standard line, is "Ok, take your little paper to your manager and make it all fit into the $22,000 I told you I was willing to spend, otherwise we are done here." 

I switch cars too often, but I always take the wife and kids so they know the drill.  A couple of months ago, my wife got her chance to go it alone on buying a car and did spectacular.  She even got her price ($2,000 below what they advertised) at the place where they claim never to haggle.  The girl handed her the policy brochure that explained how "sales people are not paid on commission and the price is the price!" but when she got in her car to drive away, a manager came running after her.

Sorry about your boy.  This will serve as a great lesson for his future dealings though.