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Dealer trying to screw me?

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scottdrummer

Passed Driver's Ed
I have been negotiating a gti with a local dealer. I agreed a great price with them after comparing with another dealer. They went away and approved me for financing over 72 months at 3.9% apr and a day later asked for a bunch of info and said the bank won't finance you now due to high debt ratio. Which is know is bs as I worked out my ratio and it's fine. So they now say I am approved but with vw finance except that there is no $1500 cash back discount. Therefore I would have to go into the 84 month bracket at 4.2% apr. which compared to my original agreement would end up costing me well over $2000 extra with cost of borrowing.
So has anyone seen this type of technique at a vw dealer. Are they trying to pull a bait and switch?
 
grambles423

grambles423

Automotive Engineer
Any loan beyond 4 years is just not worth it unless its 0% APR and you pay it off quicker.
 
mkvince

mkvince

Go Kart Champion
After you sign the paper, you're still subject to credit approval. The bank has their own way of calculation. Looks like you're not qualified for 72 month term so they give you a higher term to reducie the monthly payment and a higher interest rate. If you believe they're trying to rip you off, just go to a different dealer.

Don't know about Canada but 3.9% is high IMO.
 
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plac

Guest
a 7 year loan?!!?!? the bottom line is... if you need that, you can't afford the car. i don't even like my 5 year loans..
 
mkvince

mkvince

Go Kart Champion
scottdrummer said:
I've not signed yet. But 3.9% is still better than bank rates. They were in a hurry to agree to my price.
Click to expand...

You didn't sign the final paper yet, but you signed the paper to give them permission to proceed. An 84-month is too much for this car, but at the same time, you guys are paying much more compare to us in the US. Like I said, if you think they're trying to rip you off, try a different dealer.
 
danielj1

danielj1

Go Kart Champion
84 months at 4.2 :eek:

No way I would go for that deal in today's world. VW Canada is offering 0% for 60. I would never finance longer than that. Check with other lenders and see what you qualify for if VW isn't meeting your terms.

plac said:
a 7 year loan?!!?!? the bottom line is... if you need that, you can't afford the car. i don't even like my 5 year loans..
Click to expand...

I have to agree. If you need a 7 year loan perhaps a lower priced model is the better choice.
 
Gunkata

Gunkata

Drag Race Newbie
try a diff dealer or look for a credit union, if available.
 
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