http://consumerist.com/consumer/comp...cam-330511.php

 

good find

 

Ouch. 13% !? Amazing dealers still try and pull stuff like this. Really though, the person buying the vehicle should not try to buy a new car at 13% if his finances are in such disarray.

 

Some people get in that gotta have it mode. Here in louisiana the highest rate a bank can charge is 18% on a new vehicle. Scion makes buying easy cus you can fill out the app on the scion site and see what you are at before you step foot in a dealership.
Scion is clear cut it makes buying and selling a breeze. And on the sales side: sales people don't hold guns to peoples head. If you don't feel comfortable just leave. Most dealerships will have no hard feelings cus their are plenty of people behide you needing a car. Just food for thought!

 

Exactly what I was gonna say!

 

Hmmm, okay, dealer perspective here for anybody that wants it.

There is something he isn't telling us in this article. With Scion, the rate is based on the FICO score and you know it as soon as you go to the dealership's website or showroom. It's posted. That's part of covenant.

His score is 620. That's zone 5. My current posted rate for that site is 11.75% for 60 months (this can vary from area to area and dealership to dealership and changes nearly every month BTW). That's not a great score.

At this point the dealership made a gamble, a bad one, and gave him the car without approval from Toytoa Financial Services (TFS). I garuntee he has something on his credit report like a reposession that caused TFS to say no. The dealership scrambled after that and tried to get ANYBODY to take this loan. VERY few banks will buy down to a 620 score (until recently, that was the lowest score Scion posted a rate for). I'm not surprised that nobody took this.

Is the dealership trying to scam him? No. They are just trying to hold a deal together for somebody with bad credit. Did they screw up by allowing him to take the car on a spot delivery? Oh yeah. It was most likely the case of an inexperienced finance manager. He saw the score but didn't READ the credit report. TFS did read the credit report.

I'm not sure what the dealership will do in this case. They really won't want to take the car back. It's a used car now. It has been registered. It has probably lost at least $1,000 in value in the eyes of a customer.

I'm also not sure where the fault lies in this deal. Did the customer hide a past reposession? I'm not sure. There is certainly some fault with the finance manager for not looking at the credit more closely.

I wish all partys good luck in this and I hope this perspective was a little helpful to someone. If you are unsure of your credit and shopping for a car SAY SO! It doesn't help you to hide such a thing and you will just waste your time and get offended in the end.

If anybody wants advice on the subject, I'm not an expert, but I know my business. Please PM if I can help.

-Alex

 

Alex is all over this one and as a Scion consultant my self he nailed it. If the scion paper work was sent to DMV (dept. of motor vehicles) and recieved a plate then it is titled. So now it's a used vehicle if it has not then a new one with alot of demo miles.

 

pretty interesting