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deaconessmary · Jun 11, 2008, 06:50 PM

Hi I would like to know if a car dealer can charge you 18.99% for car loan also could I take the car back if I took it off the lot but they did not complete my contract by not having a finance company to take my loan into consideration and also my trade in they never paid off yet what can I do about this.

Thank you

Fr_Chuck · Jun 11, 2008, 07:08 PM

1. Did not say where you are at, but that is not unheard of on high risk car loans, esp some of the buy here pay here lots.

If you do not have a complete contract, you do't own the car yet?? And if there is no loan in place, you should not even have the car??

askherman · Jun 11, 2008, 09:06 PM

Hi. The process in which you purchased the car is called "SPOT". This is where you go to a dealership and drive out with a car. Yes the dealer can charge you 18.99%.The rate is based on your credit profile. Typically but not always true the lower your credit score the higher the interest rate. In most states the dealer is allowed to mark up the interest rate up to 3%, which they get paid a commission. Over that amount they get to split the commission with the lender. The finance manager makes a decision to give you the car because that person feels that the bank will take the loan. The general rule of thumb for dealers is that if they aren't taking back at least 6% of the cars they put on the road, they are not spotting enough cars. Whether you can take it back is debatable. You did sign a contract. Generally there is a 3 day rule for a contract to become valid. Depending on what state you are in you may have a 3 day right of rescission rule on auto loans. Ask the consumer affairs or the attorney generals office if the rule is in your home state and what your rights are. They are the governing agencies that can really help you. As far as your trade balance, they have to pay it off. They have to satisfy the lien in order for them to dispose of the vehicle. If the payoff balance is more than the value they gave you, then they will add that amount to your financed amount. Good luck.

excon · Jun 12, 2008, 05:37 AM

Hello herman:

I have NEVER heard of a 3 day right of recission on a car loan. Please document you statement.

excon