On Saturday, 12/22/07 my wife and I made an appointment with Amity Nissan to test drive a 2008 Nissan Rogue. We showed up, drove the car and liked it.
The salesman , Bruce, immediately went into his pitch to sell the car. We told him we were not interested in buying that day. We also wanted to test drive the Ford Escape and the Saturn Vue. He kept coming back with lower prices each time he went to talk with his manager.
We repeated several times we really wanted to look and compare the other cars first. He finally came back with a price that was $550 below the invoice price I had gotten for this model off Edmunds.com. We decided to buy the car at that point since we had been leaning towards this car as a smaller version of the Nissan Murano which my wife had always liked and the price was good.
At this point I told him we were still not sold on the car. My wife had test driven a higher end model of the Rogue with a 6-way seat. Due to her small frame and being 5ft tall, the 4-way seat in this model could be totally different for her and too far down for her to see out comfortably. Bruce then drove us to their lot in Amityville to see and sit in the actual vehicle we were discussing to purchase to settle that issue. The seating was fine.
However, we still had no intention of driving the car home at that time. We told Bruce we had preapproval for a car loan from my wife's credit union and we would come back and do the deal after that was approved. He assured us that was not necessary. We could apply for credit approval on their bank loan and have a double loan. I told him I didn't understand what a double loan was. He explained we could apply for both loans and then turn down the dealership loan with no strings or penalties attached when we got the credit union loan approved the following Monday or Wednesday. This would allow us to take the car that day and take whichever loan we wanted. I was a little leery of this offer but didn't think it would hurt for my wife (who was actually buying the car)to sign the credit application. It was just for a credit check to see what rate the dealership's bank would give us. Besides, Bruce had assured us that there were no games being played at this dealership. Everything was completely honest and above board.
As we progressed to filling out the paperwork, I questioned the $374.00 Administrative fee which was listed on the contract and told Bruce I did not want to pay this. He countered that it was a charge that the dealership was charged by Nissan and that was paid to Nissan. It had to be paid.
He then added in the dealer fee of $45.00 for, I guess, getting the plates, the tax on the vehicle and the state fees.
We got our insurance company on the phone and added the vehicle with all the required information to our policy.
At this point he told us to come back at 4:30pm and the car would be ready to drive home. We went out Christmas shopping feeling we had gotten a fair deal and we would get our loan from the credit union when we called them on Monday.
When we came back we were handed over to Christine, who it appears is the finance manager for the dealership. She handed us a loan application from JP Morgan Chase bank with a very good loan rate of 5.54% with no prepayment penalty based on my wife's good credit rating. However, we had not yet been able to check the rate we would get with my wife's credit union since it was Saturday and they were closed. We told Christine that we still wanted to finance through the credit union at that point and she cited the great rate we were getting. We told her it was a double loan application which Bruce had suggested and that we would be taking the credit union loan once they were open on Monday. She did not verbally respond to this only smiling and nodding her head as if in agreement that she understood that was the case.
I then reviewed the loan application document and was immediately confused by the complicated array and layout of the numbers. I told her that the purchase price listed was just wrong. She assured me it was correct and that the tax and fees were included and that's why it looked wrong to me. I re-examined it, borrowed her calculator, and told her it made no sense to me. At this point she took it back and reworked the numbers and told me she had made a mistake and added the $374.00 administrative fee in twice. I was right and she would fix it and get a new copy printed with the correction.
In the meantime, she offered us a Nissan comprehensive extended warranty for $1,595.00. If we changed our mind, we could cancel it within 30 days with no penalty or pro-rating charges. If we didn't accept it now and wanted it later it would cost $1,995.
Since we had not considered an extended warranty before this, we accepted on the basis we could cancel it after we had reviewed our options on this.
When the new paperwork came back it was just as confusing as the first loan application. She assured me it was right this time perfect was her term. I asked why the purchase price was so high when the car was not that much. Her explanation was that the tax for the car and several other things were included. I then asked several other questions which were inadequately answered and finally gave up thinking this was not the loan we were taking anyway and my wife signed it.
We then drove the car home. I later that night reviewed the paperwork and still could not make heads or tails out of it. It just didn't add up correctly no matter how I approached it. And, after reading the purchase agreement again, realized Bruce Grob had lied to me about the Administrative fee to be paid to Nissan by the dealership. It had two small stars next to it which in very small print at the bottom of the agreement clearly said this fee represented only a dealer profit and was not a required state tax or any other required fee.
We decided to go back to the dealer the next day, Sunday. Again, we saw Bruce and told him I wanted to put the car on my credit card and rip up the loan agreement since even after reviewing it at home it made no sense to me. He now told me he really wasn't familiar with the financing end of the business. That was Christine's job and she wasn't in. This was from the individual who all-knowingly steered us to this loan with a supreme financing knowledge and background. Suddenly, he is supremely stupid about the finance end.
I also told him he misled me on the Administrative fee being paid to Nissan. He denied telling me that. His explanation was that he had told me it was a fee printed on all Nissan dealer forms. That is probably untrue, also. I told him that wasn't what he told me and that he should in the future refer all buyers to the superfine print at the bottom of the page, which he already knows is there and what it says. Rather than lie about it, he could at least be honorable enough to present it for what it is. It's something any thinking buyer is going to find out about, anyway. Why not just announce yourself to be a liar since they eventually will read it and see that you lied?
I then told him that had I realized what the Administrative fee was while still in the dealership, I would have refused to pay it or it would have been a definite deal killer.
He then put us over to Rick who explained that Christine was either not in or not yet in. He stated that while he was not completely familiar with the loan application agreement form or process,he said he had some financial background from another job and could probably help us figure out the amounts and make the adjustments.
I told him we didn't want the loan. I wanted to put the full amount of the car loan as shown on the application on my credit card. We would then get a loan by Wednesday from the credit union and the credit card charges could be reversed.
He kept telling us we could fix this and work it out.
I showed him my list of questions/problems and what I felt the numbers should be. I wanted no fees or taxes in the financed amount.
While Rick spent a good deal of time with us and was able to explain the charges, not everything was fixed. And I reiterated that I really just wanted to put it on my credit card, cancel the loan application and deal with the credit union. I don't clearly remember, but I think his response was we would need to discuss that with Christine. He could not do it. He asked to see the bill of sale. It was then that we realized we had not even received one. Rick got a copy and gave it to us.
While reviewing again the amounts paid, we found another error of about an $11.00 overcharge in calculating the tax on the extended loan agreement.
For some reason , The extended warranty was charged to us as a flat $1,595 cost. In fact, it was $1,458 plus 8.625% sales tax which is $125.75 totaling $1,583.75. Why we were charged $1,595, I don't know. There were too many mistakes to be mistakes.
And how many times are these mistakes repeated in calculating the loan finance amount, extended service contracts and other fees in their other sales transactions?
Rick moved this to a separate bill and applied the credit to the $212.50 in NYS fees which he took off the loan application and let us pay separately on a credit card.
Feeling we had taken care of the majority of problems (outside of canceling the loan application), we left. On the way home I realized that in all the confusion of recalculating, removing and being unable to move the charges to my credit card, etc. The tax amount on the vehicle was still included in the loan application we didn't want.
On Monday, my wife called her credit union explaining our situation. They said they could do the loan for a slightly better rate with the loan sale going on until 12/31, automatic account withdrawals and cut the check by Wednesday. Only the bill of sale would be required.
The only complication was the other loan application. It needed to be canceled.
We called the dealership on Wednesday and after several attempts finally were able to speak with Christine. She told us she was not aware of any loan we intended to get through the credit union. We told her that we had mentioned it to her, but she denied any recollection of it. She kept citing what a great rate we got and what was the credit union offering? She also kept telling us the dealership made no money on the loan. But why would she then not simply withdraw it and let us go to the credit union? Finally, she told my wife she had signed a contract and the loan application could not be withdrawn it had already gone to the bank.
We then called the Auto Loan division for Chase Bank and spoke with a manager. He told us that the dealership could call back the application at any time. It was not yet in their hands. And it would not be processed for another two to three weeks, probably three or more due to the holidays. But the dealer had to call it back, we could not do it ourselves. He suggested we call back and speak to the dealership manager and skip Christine.
My wife called again and asked for the manager. She was told he was in a meeting and would call her back shortly. That call back never came.
On Thursday, we contacted our State Senator's office asking what could be done. While their specialist on car dealers agreed this was not ethical, there was nothing he could do except to call the dealer directly and ask the manager to call us.
We are still waiting for that call.
As of now, we have been forced into a loan application contract which we relied on verbal promises would be withdrawn on our say so at any time once we had assured alternate financing which the dealer knew we had. Once they had a signature on paper, it is apparent they were lying the entire time about their true intentions.
If this loan goes through we will be paying additional monthly amounts over what would have been our payment at the lower credit union financed sale rate.
Additionally, we will need to refinance this loan again through the credit union in the near future and change the title over to the credit union from Chase bank incurring additional fees for the process. It is quite possible that the rate will not be as good at the time as it is now, either. But to get away from these sharks it will be well worth it.