# Advice about truck financing mistake



## EverSoDull (Nov 13, 2007)

I just bought a new 2007 Nissan Frontier NISMO two weeks ago

Numbers are rounded. 

The Contract Reads
Total Financed $27000.00
Interest rate is .9% from Nissan
Total Interest will be $630.00

The dealership keeps calling me; they want to reduce the cost of the truck by $3000 and have me sign a new contract for $24000.00 @ 4.99% with another bank.
My payments and terms would remain the same.

The guy keeps saying he is just trying to save me money but I think he just made a mistake and he is going to have substantial out of pocket expense to buy the interest down.

I have caught him in several lies so I don’t know if it is true but he said that Nissan wanted to charge 5.9%. If I am doing my math right that means he will have to fork over $3600.00 to honor the contract as it now reads.

Last thing I told him was to call me back and make some kind of substantial offer; otherwise things are as they are.

This is the first new car I have bought since 1983 so it is all new ground for me. I really would like to have any advice from more experienced car buyers or sellers.

Thanks!
:fishing:


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## RoryGoggin (Jan 6, 2005)

Well, if you can re-fi the new contract with your personal bank for less than the 4.99%, I'd say go with the new offer. It looks like you've got a 5 year contract. The payments are about the same, and the total out of your pocket would be about the same. So if you pay it out to the end, it wouldn't matter to you.


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## basstardo (Jun 5, 2006)

If the term on the loan is 5 years you're looking at:

27000 at .9% for 5 years is 460.37 per month. 
24000 at 4.99% for 5 years is 452.80 per month. 

If you read through the contract, and double check to make sure everything is correct before signing, you'll save about 7.57 a month. That adds up to 454.20. Where is this 3600 that he'll have to fork over coming from?

What makes me curious is why they want you to sign a better deal. That doesn't compute, especially for a car salesman. I tend not to negotiate with them, because I usually research the crap out of a vehicle beforehand and figure out the deal I want. Then I tell them my terms and say take it or leave it. It's worked every time except once. You just have to be prepared to walk out and go elsewhere if they don't accept your offer. One thing is for sure, if they don't want to take your money, there is another dealer who will.


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## saltandsand (Nov 29, 2007)

I'm not up on North Carolina law, but here's how it goes in Maryland. NC is likely to be close on this and there may be a Federal issue...let's not go there.

This is a mistake. It is a unilateral mistake unless they can show that you knew or should have known of the mistake. The mistake is on the contract, within the four corners of the paper...the 4 corners test. It is their mistake.

Now you are asked to rectify what is known as a unilateral mistake. As others have indicated, do the math and look for other financing sources. You will need to finance with a source that is known as a PMSI or otherwise have a lien acknowledgement on the vehicle. Here's NC law on PMSI: http://www.ncga.state.nc.us/enactedlegislation/statutes/pdf/bysection/chapter_25/gs_25-9-103.pdf Lien law is available on the net.

It all comes down to your credit ability, namely your FICO score (BTW: This also drives your insurance rates.) 

Without knowing more, IMO you should look to come up with an alterative to take advantage of their loss (roll over the deal on a cash sale basis at $24K); otherwise if they push the issue hold them to the deal that they made on paper. It all depends.


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## sprtsracer (Apr 27, 2005)

He's not doing you a favor...he's doing himself a favor. Among other things, the "F&I" guy gets paid on what he finances, so for whatever reason he is trying to get a new contract, you can believe there is more money in it for him.


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## damifinowfish (May 29, 2006)

This is what happened to us ten years ago with the last truck we bought from a dealer. We bought a 5 year old truck to move the camper with. Financed it for three years. 

Two days later I got a call from the dealer to come in and I could get a lower interest rate for only two years with a much lower monthly payment. 

Great deal we could find nothing wrong with the new contract. 

Then two weeks later I got a letter from the first bank to aplogize for turning my loan down. They said that I was prequalifitied for a 50,000 NEW TRUCK.

They said that they do not make bank loans on 5 year old trucks.

The dealer let me drive off with out approved financing on a 10,000 truck.

Go figure

Damifinow fish


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## rattler (Jul 3, 2004)

I was selling cars at a "major" dealership last year...If you have good credit you OWN the way they treat you...do the math and keep what they gave you if its cheaper...as for the long age stuff stated long ago, I had the same thing happen, and it cost me big $$...anyway...the dealerships have things set up with the banks they deal with...not as bad as it was, but they still hold hands...hope this helps...


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## J_Lannon (Jul 23, 2003)

EverSoDull said:


> I just bought a new 2007 Nissan Frontier NISMO two weeks ago
> 
> Numbers are rounded.
> 
> ...



Stay with your current deal. He is making out, not you.


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## gtodave (Mar 19, 2008)

J_Lannon said:


> Stay with your current deal. He is making out, not you.


Why not see if he'll give you a kick-back? If it is worth the time for him to call you, it's worth him giving up a little bit. I've been on the sales-side of that call...if there's something for him to gain, he'll work with you.


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## EverSoDull (Nov 13, 2007)

OK, it has been a week since I told the guy “It is what it is”….

So his boss calls me tonight still wanting to deal…. He says 

“I need to cash this contract but I hate to just burn cash, I can save us both a couple hundred dollars”

I told him the other guy was a dishonest a$$hole and he would have to do better….. 

AKA: Give me something or save me a buck….. 

Besides it is Saturday and it has been a hard week so email me what you have in mind and call back on Monday……

They are saying that they are trying to save around $600. And we can split the savings…

Myself I don’t think they would trouble themselves so much over $600 but I am often wrong…

Any thoughts?

Please
:fishing:


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## scavengerj (Sep 10, 2007)

Hmm, interesting. Crunch the numbers and do what works for you. What do you care if "he" saves anything?? 

Had something similar on my first mortage..signed a good contract only to have a message for me when I got home. Called me to saythey were sorry but, they no longer offered that rate and that they would offer me another one. Called the state banking commissioner. Got a call back from the mortage company saying they were sorry for any problems and they'd honor the signed, valid contract. They should have known what they were selling before signing a contract.

Car dealers luv to sell you a vehicle w/o you having the financing yet. They have made their money on the sale and leave you to deal with the finanace companies. All the while looking like they are your best friend trying to help you....your the one stuck owing money or getting a bad rap on your credit report/score.

Caveat emptor


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## RoryGoggin (Jan 6, 2005)

OK, what's likely happened is Nissan won't take the note as it is...so your dealer is left with paper he can't sell. He's got money invested in that car for the next 5 years. He's sold the car and now has to pay for it. He doesn't want to. Also, when you sent your payments to Nissan, they'll have to figure out a way to credit them to his account...etc., etc., etc. He could discount the paper to Nissan at a rate that would make them happy. 

Guess who has who's short hairs? I'll bet he'll sweeten the pot with service etc., if you don't already have it.


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## EverSoDull (Nov 13, 2007)

No offers for a better deal yet! Like I told the last guy who called.... A dollar off a month is $60, ten dollars off a month is $600, just offer me something other than double talk.... I'm still waiting for that payment book


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## scavengerj (Sep 10, 2007)

Ever, whatever happened???


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## EverSoDull (Nov 13, 2007)

I took a rate of 4.45% and a $3600 reduction in cost which lowered my payments buy a few dollars then made them drop the warranty and together my payments went down $35 a month.

Not a great deal but better than I started with. The goal now is to pay the thing off in order to save some of the interest.

In a side note I have been Hypermiling (google it!) And I and getting 20+% better than the 16-19 mpg EPA rating….

Thanks for all the advice from everyone!
:fishing:


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## scavengerj (Sep 10, 2007)

Good to hear. Thanks for the update! Had been waiting to hear how things worked out for you.

I have to say though, the way they tell you to calculate gas mileage isn't accurate to me. Using the hypermiling method.

What has worked and been most accurate for me is to:
fill your tank
reset trip odometer
drive until your tank is HALF empty
fill tank again and read trip odometer
divide the miles by the number of gals used.

If you use they way they described:
you do not know exactly how much gas is left in the tank when you fill it again so therefore you are not getting the real world fuel mileage. You may have another 10,20,30 or more miles left in your tank.

Just my method for calculating but it works 


DMS #525
OBPA


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## AtlantaKing (Jul 7, 2002)

I don't know about this hypermiling thing, but on the highway, the cruise control is your friend. I drove from Wilmington, NC to Fredericksburg, VA (340 miles) on 13.85 gallons of gas in my 2002 4Runner. I had just filled up my car at a gas station right before Route 117 turns into I-40, so the tank was full. After driving carefully, and making only one stop for coffee and refreshments, I made it to Fredericksburg with a quarter tank of gas left. I set the cruise control at 68mph the whole way, stayed in the right lane, and laughed at the people who blow by at 90, only to get somewhere 5 minutes quicker. Net result on the 340 mile trip: 24.5 MPG in a 6-cylinder 4x4 SUV!


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