EsCoBaR1

Ok on Friday i just bought a Black Mazda Rx8 Gt, Black and Red Interior with the Appearance Package for 30,299 with taxes it came out to around 32,000. Anyways, we went though with Mazda Financing to get the 1000 mac rebate and then i put 6,000 down plus the 500 dollar gerber rebate equalling to about 7,500 down dropping the amount financed to about 24,000 at a 9.04% interest rate. Now they called me Monday saying that the Mac Financing didnt go through and that they found another bank for us with the same rate and everything Except we just wont receive the Mac Rebate! So what can i Do???

BlueEyes

9.04% interest!! holy ****. How long are you financing for?

rotten42

that interest rate is way to high!

Riccio

If you really want the car, tell them that you still need the same net price ($1000 MAC Funding rebate included) before you go to the secondary source.

They really, REALLY don't want the car back, so they should accommodate you. If not, you can walk, because they are changing the terms of the contract you signed. You are not obliged to go with the new financing. You are entitled to 100% of your own money back.

If your credit is at least decent, (and with that down payment) have you tried Capital One funding on line? Good interest rates, and very fast response. I refinanced my 04 RX8 with them when rates were still 4.75. www.capitalone.com

Good luck..........

BlueEyes

yeah, I hope that's a typo. I mean in Canada, the highest financing rate is 3.9% from mazda, and that is for 72 month finance, a long time. You would have to be financing for 10 years to get a 9% interest rate, that rediculous.

KYLiquid

you cant really make a guess on the interest rate...you dont know his credit history or any of that info.....that aside.

DONT RESIGN ANYTHING, you entered a contract to buy the car for XXX payments of XXX dollars. plain and simple. Even if they have a new contract that looks EXACTLY the same as the orginal, DONT RESIGN. If there is really a problem you will get letters from lawyers.

my advice is dont sweat it, just tell them you made a deal and its final.

Dealers/finance companys 'sell' the loan from one back to another, if this is what happened there is NOTHING FOR YOU TO DO, the 2 banks take care of it.

Dealers also often run scams, they make it look like they got you a better deal, but there is usualy something that has changed...

Tamas

iTrader: (1)

Looks like typical dirty dealer games to make you pay more. Actually, even the price you negotiated is high, so that alone doesn't look like that good of a deal, but they just want to change terms on you.
As others said, stick to your guns and refuse to resign anything - if they really want to sell the car to you, they will find a way to do that for the originally negotiated price. If they don't, then walk and find another car at another place. It's not that they'd be in short supply.
Oh, and that interest rate is ridiculous.

EsCoBaR1

No im not kiddin....thats the interest rate b/c my parents are cosigning in order for me to get my credit goin....Could i still try to get a loan through a bank or online credit union?

Ok I just talked to the dealership this minute, I told him that were trying to get approved for a bank loan and he said that its going to take to long for that and hes going to be losing money, incentives blah blah. And then i told him well you shouldnt of let me drive off your lot if this was going to happen. So he told me if im not going to resign anything then i have to bring the car back and i was like fine then ill drop it off at 5 after work.

fray

iTrader: (1)

Sounds like what happened when I bought my RX-8.. everything was cool, until the financing office.. they wanted something like 9%, and a _HUGE_ financing fee arrangement..

I went to my local credit union, got 4.25%, they cut me a check that day.. walked into the dealer (of course they tried to pressure me back into financing through them...) Walked out w/ 4.25%, no financing fees. More then made up for any MAC credits I may have lost.

As Tamas said, this sounds like dirty dealer games to me. If you have a contract for a certain amount, they need to honor it... or the recourse is to renagotiate or return the car. I'd be inclined to return the car if they don't want to honor the contract terms. (also be _SURE_ you pay attention that the payment amount is the same or under what you agreed to. going to an outside lender may have bumped your financing fees!)

(Got screwed once on financing for a used F-150 for a dealer... I won't play that game with them anymore.)

psbjames1970

To make a long story short. I wasn't initally even considering the RX-8 (I must have been on drugs)... Was working on deal with a BMW Z3 from a dealership in Maryland (will remain unnamed), and was getting the same $#!^ you are getting about your financing. So I returned the car and called it all off.

That very same day, my RX-8 found me at Car Max (with only 2750 miles btw) and in five easy minutes was approved for a loan at 6% with Bank of America. That car wanted me and I have come to realize I can only drive an RX-8. It was meant to be... (getting carried away here :o )

If the deal stinks, go somewhere else. You will regret it if you don't!

James

EsCoBaR1

Im financing for 72 months and they told me the best thing to do is to refinance in about a year when my credit is built. Man im pissed

psbjames1970

Good for you. Then make sure to go SOME WHERE ELSE when you do buy. Most CU with that much down will work with just about any credit or no credit.

My first car experience was exactly the same (except it was a measly Ford Escort ... which was a great car for 5 years). Ended up returning the car after being told I needed cosigners and my interest was going to be 15% (high even in the 1980s). Ended up going to the credit union with no cosigner and got a loan at 9% (good for the 1980s).

Good luck... just be patient

psbjames1970

Try applying for finance online directly with Mazda (www.mazdausa.com). They can tell you very quickly if you will qualify.

James

fray

iTrader: (1)

EsCoBaR1: I hate to say it, but the best thing is to bring it back at 5.. and see if that changes their attitude for financing.. Some dealers will suddenly turn around and give you want you want.. they'd rather have a customer then a car. (But like I said, watch out for insane financing fees on top of a high interest rate... a high interest rate isn't as bad as people make it out.. you can always refinance after your credit score improves.. but finance fees/early payment penalty fees are really damaging and should be avoided at all costs.)

EsCoBaR1

^^^What do u mean financing fees......is this IF i were to go to a outside lender or resign? Sorry but Im new at this, this is the first time im actually involved in purchasing my car. I thought the interest rate was reasonable since the only thing i have under my name is a credit card that i pay my college tuition with making my credit score they said to about 640.

psbjames1970

My credit score is the same and got 6%. But the score isn't the only deciding factor (age, property owner, etc play a lot into it).

Go to your nearest CU or bank and get the loan done there. They will know in no time if you qualify or not. Then tell the finance guy to kiss your......................

(Fill in the blank)

macnrx8

My credit score was only 610 and I got 6% at my credit union before I even went to the dealership. I did have a current loan with them( my Millenia S I traded in for the 8) that I have paid on time for 18 mos. I financed for 72 mos. and put no money down... even had to roll over $1800 dollars on my trade. Even though my credit score wasn't good I was told that my previous payment history kept my rate lower. I probably wouldn't buy from that dealership after what they did, but I would take what I could get and refinance in about a year of paying on time.

EsCoBaR1

Haha ok Thanks for all the the extra help. Im getting ready to go drop the car off and tell them I cant take their offer. Ill be sure to update.

Sigma

Most MAC financing on the RX-8 is about 4.9% -- if you qualify for 4.25% at your bank, you'll qualify for 4.9% through MAC. And MAC doesn't charge "financing fees" or any sort of other fees for early payment. "Financing Fees" and the like are usually a dealer thing, an administrative fee that the unscrupulous dealers add on for the 'priveledge' of dealing with their finance guy, and has nothing to do with the loan origination. And I haven't heard of a lender charging early payment penalties in years.

Depending on when you buy your car you can be turning away anywhere from $1000 to $4000 in MAC rebates. Turning away anything more than $250 to save 0.65% on an interest rate doesn't make sense. Let alone turning away thousands. So unless MAC wasn't offering any rebates whatsoever I really doubt that your 4.25% "more than made up for" any MAC rebates you turned away.

slllygrl10

Well, try financing it AGAIN and see if you can get the APR below 4%. That happpened to me when I bought my car. At first it was 9.99% interest rate then they called me 2 days later saying that they found another bank that can get me lower interest rate. I saved myself about 2-3K. If they cant get the mac rebate but lower interest rate go for it! My interest rate is not 3.89%

fray

iTrader: (1)

Originally they wanted to give me a 9% rate.. then I said no.. and they suddenly managed to find me a 7.25% rate.. Then looking at the paper work there was a $4250 financing fee. The paper work claimed for me to get rebates/etc, I had to keep the loan for a minimum of 9 months? (might have been 6, otherwise I had to pay the rebate back.)

My monthly payment would have been $595.. going through my credit union with the 4.25%, no fees. My monthly payment is right around $400. Same loan duration, same down payment, same cost of the car. The dealer loan would have cost me $11700 _MORE_ over 5 years.

The key is watch the paperwork closely.. financing is one of the biggest ways dealers make money...

Sigma

That's just a dealer trying to screw you over.

There is no such thing as a "financing fee". I think what you saw was "Finance Charge" -- that's a term for the total interest paid on the note over the life of the loan if held to full-term. It's not an additional charge, but by law they have to disclose it in the paperwork. When you finance you get a Federal Document from the Finance Manager as a result of the Truth in Lending Act that breaks down where every single penny goes in the loan and explains it all in very layman's terms.

There is no minimum term needed to get your MAC rebates; you can turn around and refinance with your CU the next day if you'd like. Many people do. Some honest dealerships will even do the paperwork for you. And a minimum is absolutely positively is NOT in the paperwork for a MAC loan.

And they give you a high interest rate because they get to pocket any difference over the standard offering of 4.9%. You can negotiate on the rate just like you can on the price of the car.

I would have turned away from that deal right then and there. That's just a flat-out unscrupulous dealer. It sounds to me, if what you say is true, they weren't giving you a MAC loan at all. They were giving you their own loan through whatever institution they wanted to and eating the rebate cost themselves and making it up on the backside of the deal. That's definitely a dealer I wouldn't do business with. If they didn't successfully screw you over on the deal they did, or are going to try to, do it someplace else.

Financing isn't necessarily the biggest way they make money -- screwing people over is the biggest way they make money. Just watch what they're doing and you'll be fine.

fray

iTrader: (1)

Sigma, yup, I suspect what you say is absolutly correct. The dealer was trying to screw me over in the loan. The price of the car was very much what I consider "correct" for the car I purchased. It was the loan that wasn't.

(My roommate worked as a car sales person for about 2 months prior to this and told me what to watch out for... needless to say, it saved me a bundle.)

The Salesman/GM were both happy to sell the car regardless of financing.. the Financing guy was less then thrilled when I told him "no".. I'll finance it myself. (This was a no haggle dealership, so I suspect the finance guy was on commission, while the sales people were salaried.)

EsCoBaR1

Well i went in there telling them i wasnt goin to resign anything and here were the keys and told the salesman sorry Freddie (our salesman) i guess you wont be getting your bonus for the end of the month. The finance guy started making his phone calls and as we were gettting up to leave he handed a new contract with a 6.65 interest rate making our payments lower than the contract before, so we signed But didnt get the Mac Rebate. Honestly we just didnt care anymore, we've gone through so much Bullshit with all these other dealerships around here that i just wanted my damn Rx8. We've gone to about three dealerships and each one of them were out to get us. First was the Demo car incident, then we went to Kingwood mazda and Actually signed a contract .....by the time we got home we realized they tried to give us a Lease balloon Payment, Thank god we didnt drive that car off the lot...and then all the other dealerships were just offering us ridiculous prices. So basically this really was the best offer i could get around my area. Also, this dealership was the only dealership that offered me this kind of price for the type of car i wanted and I left the car there for them to Buff it, detail it, and fill the gas tank. One more question....how long do you guys think i would have to wait for my credit to begin to build so i can refinance?

Tremor

I have been monitoring my credit situation using creditinform (mycreditinform.com). It costs $5 a month, but it does give you a beacon every 3 months. I have watched my credit climb over 100 points in a year and a half.

Your credit will continue to build as long as you:
DO NOT miss ANY payments! Keep your balances low on credit cards, don't apply for credit, clear ANYTHING that is negative. It will take at least 6 months to show some gains probably.

good luck
Tremor