I have bad credit, but need to get a newer car. I'm not buying new, but used. I shopped around and was turned down at 2 places, but approved at a Hyundai dealer @ 21%. We found a car we like under $9,000 with $2-3,000 down.
Since I need the car & can afford the rate I agree to the terms, but when I sit down to sign the papers the finance guy tells me I have to purchase an extended warranty @ $1,600 or I won't get the 21% interest rate - instead it will be 26% - I'm told the lender is making the requirement, not the dealership.
Needless to say I leave without the car. So, is this a new trend in dealing with sub-prime car loans or a complete dealer scam?
BTW - at first I said I would sign the documents if he put in writing that I had to purchase the warranty to get financed at 21% and a non purchase would result in the interest rate to jump to 26%. I was scheming that I would then show it to the states attorney (I live in IL) and sue if it was illegal. Finance guy said he would do it, but I was so irritated that I wound up leaving so I could do some research to see if this is what is going on with others.
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