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Anybody know anything about car finance

Discussion in 'The Pub' started by tiggers, Mar 23, 2012.

  1. Hi,

    Had an odd call from the dealer I bought our new car from back in November, basically saying they had cocked up on the figures of my trade-in and they owe me $2500- NICE.

    Now a cheque is winging its way to me; the question is, beause they phucked up does it mean I'm paying more on the monthly payments, so I may have a nice 2.5k but has it cost me more on the life of the loan?

    I know I should of asked but the $$ clouded my judgement...you know...I could get that jacket I want, exhaust, new suspension, should I tell the mrs :)

    Any ideas?


  2. Its possible I'm being a bit cynical but if they gave you 2.5K because of a stuff up - should they have given you more??
    Its a car dealer so You'll understand my concern..
  3. Sounds legit.

    When do they need your credit card details? :)

    I think we need more info, ie did your trade in knock off the total amount financed? If so, then yes. But you can put the 2.5K onto the loan & pay it off sooner, however some loans have a fee if you pay it out early.
  4. Hi MV,

    The trade in knocked off the total price of the new car before I added extras like payment protection.

    Total for the car before trade in was $38k - got 9k for my beaten up forester.

    They claim that the sales guy's writing wasn't clear, hence the cock up.

    Its a VW main dealer, if that makes any difference.
  5. It is what I do for a living.

    Appears that they financed more than was intended. The balance is yours.
    However, that also means that you are paying interest on a larger amount.
    Unless it is a super deal, ie 2% interest, bung it on the loan straight away.
    It wont reduce your payments, but will reduce the term (normal practice).
    You will pay significantly less interest over the term of the loan if you do this.

    Would be curious as to why it took so long to find out though.
    Whenever your interests are involved, pay it off the highest interest loan first. if your credit card is maxed out, and that rate is 29%, that would be the most advantageous place to park the money.
    If not, pay down the highest interest rate loan you have first. This way you get the biggest advantage.
    Under the consumer credit laws, they have opened a real can of worms though.
  6. Thanks Peter thats great advice.

    Not sure why it took so long for them to find out.

    Should I check in to it further?
  7. I think you would be justified in asking for an accounting of the error in writing.

    It is your credit history and future at stake.
    You are allowed to be paranoid, but Stay Respectful to them, they are at least trying to make amends, which means you shouldnt accuse them of anything sinister.

    But it would be good to find out and put your mind at rest