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I purchased a new Ford Escape and got all their incentives but.....?
one day later, they called me to say that there is an issue with my cancellation of their bumper-to-bumper coverage, they want to raise my interest rate from 1.9% to 9.5%.
The contract and all paperwork has been signed and delivered, with all money dues paid for. Can the Ford dealership, where I got my Ford Escape, just change the interest rate? Could it be because I canceled their 'bumper-to-bumper coverage (not sure since they want to meet me but they do plan to change my interest rate and this is the only thing I canceled or changed about the purchase) although I plan to purchase another when I decide? Mind you, I do have full coverage on it for 3 years right now.
Is the contract not binding?
Please help before I go and meet with them.
3 Answers
- Richard FLv 68 years agoFavorite Answer
Odds are, they are lying to you. If you signed the loan paperwork for 1.9%, that is the interest rate. If they insist on 9.5, give them the car back...........call their bluff. Trust me.
My brother has sold cars for 30 years.....lived with me for ten of those. He tells stories night after night about how they LIE to people non-stop.
Key word: They "want" to raise your interest rate............of course they do. Paperwork is signed. Hold your ground.
Peace.
- Nuff SedLv 78 years ago
When you "purchased" the vehicle you apparently got a loan. The loan almost certainly was secured by the value of the vehicle and required insurance of that value, payable to the lendor. If you canceled the insurance, you may be in default and owe the entire loan amount immediately. They may be offering you a new loan at the new rate, to pay off the one upon which you are already in default.
Yes, the contract is certainly "binding" if you took delivery in exchange for the money you borrowed. The question is whether they can explain to you how they are changing the terms of the loan, or if they are simply calling the note due and offering to refinance at a higher rate.
DO NOT sign anything else without first asking to show it to your own attorney. If they try to pressure you into signing immediately, get up and walk away. Worst case, they repo the car and you start over, but at least you don't own 8 times as much interest as you agreed.
- davidmi711Lv 78 years ago
The contract is not binding until it is accepted by the bank. Apparently with out the additional coverage the bank charges a higher interest rate.
