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Dealer lowered interest rate so that i can purchase extended warranty?
I went into the dealership today to buy a used car. It has 23k miles and the price was 14,900.
Since i have bad credit my interest rate was 24%.
I put $5,000 down and my monthly payment is $348 for 60 months.
The dealer was telling me about the extended warranty which i said i declined, he then said "what if i can lower the interest rate so that you can have the same monthly payment" with the extended warranty.
So he lowered my interest rate to 14% and my new monthly payment is $1 more at $349 for 60 months. And i now have the extended warranty for 60 months, 100 k miles. Under the contract is says this warranty costs $3,000.
Is this some sort of scam or something???? What do you think?
Both me and the dealer already signed the contract
I am in california if it matters
4 Answers
- boy boyLv 78 months ago
what do i think you ask...well its one of 3 ..1 its a scam ..2 your a troll .if its 3 your a fool ..paying back more than $10.000 more than cost of car is lunacy ..and in 5 years time your investment wont be worth 1/4 of what you paid for it ...you must be a trump supporter for it to make sense ...
- thebax2006Lv 78 months ago
Don't buy the extended warranty. That's how the sales people juice up their commission check. You should have joined a credit union or bank to get your loan and only put $1000 down so that you had extra cash available for any repairs that might pop up.
- Anonymous8 months ago
Your true interest rate is 34.628%. You should be paying $230.36 a month if the interest rate was 14%. The dealer did NOT deduct your down payment when the payment was calculated. You got hosed really hard.
I just hope you are not TROLLING.
- !Lv 78 months ago
Well, yes, its kind of a scam. Under the warrenty, ypu'll have to take it in to their mecahnics to get serviced. They wont make any money, but the car manifacturer covers costs, so they dont make a loss, either. Then by the time the warrenty ends, theres a patterb of behaviour, and they make steady money fixing the car they sold you.
