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Discussion Starter · #1 ·
Long, but read......Just a little tid-bit I learned about getting your car financed. I just bought a 2009 Nissan Cube last week. One of the deal clinchers is that I was just coming off of a lease on an 06 Nissan Frontier. Because of the lease, my financing was already pre approved through Nissan up to x amount.

Anyway, I returned my truck and made a deal on this Cube. Signed all the papers and brought the new Cube home.

I got a call from the dealership telling me their finance person missed a signature and they would be sending me a new contract to sign, assuring me there were no changes, just a missed signature line.

I got the new contract and read it over. Sure enough there were no changes. But if you look over the contract closely you will see a block that say's "SELLERS RIGHT TO CANCEL".

If you read the terms it basically say's that the dealer can request the car back anytime withih 60 day's if they have a problem getting the financing through. This is the block I didn't originally sign. Their finance person didn't have me sign it because my financing was pre-approved. I wouldn't have agreed to this anyway.

In my case this term wouldn't apply since my financing was already pre-approved. I learned that if you sign this block, this gives the dealer blanket authority to request the return of the car and to change the terms of the contract for more money by simply telling you that the financial institute wouldn't approve of the contract as originally submitted, and they want different terms. You have the car and don't want to give it back, so you will most likely agree to a slightly higher interest rate, payment, etc. making the dealer more money.

So, if your like me and have pre approved financing, this condition doesn't apply. Be sure to have the dealer write accross it "Not Applicable" before you sign. Even if this doesn't apply the block still has to be signed, so be sure it's marked NA, because if you don't, this gives the dealership the leverage needed to change your financing or take the car back.

The new contract they sent me didn't have NA written accross that condition and I refused to sign it. I called them and bitched them out. I caught them trying to pull a fast one on me. Had I signed it and sent it back, they would have manipulated it into another contract with "new terms and conditions" to their benefit. In my case, they already know how much Nissan approved me for. And since I was well under that amount this gave the dealership some room to increase my payment, or their profit by simply telling me they couldn't get the financing through (it's usually an interest rate spike they're after).

Anyway, they're sending me another contract. This time with "NOT APPLICABLE" written accross this statement.

I researched the subject and from what I've learned. This term / condition has been added onto just about all financial contracts that dealerships use regardless of who they're doing the financing through. It's a bogus term is designed to give the dealerships leverage to change the terms on their behalf. It's just like the so called dealer fees. Dealer fees are nothing more than a tacked on amount the dealer asses to a sale, it's nothing more than a little more profit. The buyer get's absolutely nothing, no benefit what so ever from a dealer fee. - Dan

BTW: I'm not just slamming dealerships. They, like all of us need to make a living at what they do. Just be on your toes. I used to sell cars at one point in my life, back then there were no such thing as a "Dealer Fee"
 

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Discussion Starter · #3 ·
none said:
Good catch. The other bad thing is the arbitration clause...
Hmmmm, I'll have to look over my contract again, thanks for the info.

Speaking of the "SELLER"S RIGHT TO CANCEL" clause.

This clause is something that's new to me, it's been many years since I bought a new car. My last new car was a leased truck.

My son recently bought a new car as did several of our friends over the course of the last two or three years. Each and every one of them ran into a hassle soon after their purchase. Each one of them were called by their respective dealerships (all were different) with an issue regarding their financing. All except my son finally agreed to some financing other than originally agreed on. If I can remember, all were bumped about 2% or so on the interest rate. They felt under the gun because they already had the new car and their trade in was no where to be found.

My son on the other hand stuck to his guns. He told them to bring him his trade and pick up the new vehicle, he wasn't coming to them. They caved and left him alone, finally calling him several day's later telling him they got things worked out.

My first thoughts in each case was "How can a dealer do this". I was clueless until this incident with my Cube. Now that I'm aware of this clause I'm going to spread the word. - Dan
 
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