Dealer got my vehicle in today. But when they called they said they are requiring a min. 6 month loan and then buyer can pay it off. Wild. That was not communicated when we put the deposit down.
Required loan to purchase
- Thread starter JustHere4Research
- Start date
This doesn’t make sense there has to be more to the story
The dealer gets charged back part of the loan origination fee if you pay it off in less than 4 months. If you do a loan through him, ask for something in return. He’s making $$$$ off the loan.
- Thread starter
- #5
Nothing more to the story. I was honestly a little offended with the sales man trying to give me the sob story of them only charging MSRP.
I walked. I have my name on other lists that aren’t playing these games (I confirmed after this call)
they will finance it thru Lexus, and the finance dept. get credit for it, but if you pay it off too fast they get charged back. they cannot REQUIRE you to get a loan. Lexus corp is not requiring it. but if you want the GX, because the demand is so high they may try and get you to. at least they are not charging you $10k over sticker
It would be interesting to know your "out the door price". Was this negotiated before you heard about the loan requirement.
I bet if you pushed while you were in the finance office, they would have backed off, realizing you might just pay off right away and they'd get a charge back. Or, they'd stick to their guns hoping you might just wait to pay off, increasing their chance of making a little extra money, and if you paid off early, oh well, they tried.
I would've walked, too. Don't blame you at all.
Awhile back, one dealer did the same BS with my deal. I asked how long I need to hold the loan. Answer was "6 months." I asked if there was a pre-payment penalty. Answer was "no." Ok, so no pre-payment penalty but they want me to hold the loan for 6 months. Yeah right! I then asked what was the minimum I needed to finance. Answer was "$10,000." So I financed the $10k and paid off the loan within one week (I called the finance arm and got my loan account details right away and paid it off). I did this out of spite for the dealer forcing me to finance. I think I was charged somewhere around 7 bucks total in interest. LOL! And the dealer probably got a nice chargeback. LOL!
They do this since their finance department will either get a flat amount for it, as well as Lexus financial incentivizing the dealer for number of deals they get sent.(ie- spiffs or Lexus trips etc) you have no obligation to keep it 6 months and can payoff anytime.
Ridiculous a dealer would push that hard on you…
Ridiculous a dealer would push that hard on you…
There are many shadey dealers around the country that do that because it is an additional profit center. Bad business practice but many dealerships are just that way. They can do this on vehicle models that are in short supply because you do not have other options. Stay away from them. To learn more about that practice watch YouTube videos from Ray and Zach from CarEdge.com.
its all lie. you can pay it off the next week and they cannot do a damnn thing about it other than getting mad and bombing your phone and emails.
they tell you not to pay it off early or 6 month so they make sure to get the kickback or points from lender. No, you do not have to listen to the crap they feed you.
now you know that in mind, you can play dumb and gladly take that offer and enjoy your new gx, while paying it off the next day. who says you cant take advantage of dealers...
they tell you not to pay it off early or 6 month so they make sure to get the kickback or points from lender. No, you do not have to listen to the crap they feed you.
now you know that in mind, you can play dumb and gladly take that offer and enjoy your new gx, while paying it off the next day. who says you cant take advantage of dealers...
If they add a prepayment penalty on the loan then paying it off immediately might not make sense. But if they don’t, paying it off the next day is a good idea.
A lot of states and countries have laws preventing those situations.
For example to my knowledge auto financing in Canada is required by law to be completely open with no penalties for paying off early.
Good to check into the rules where you are to understand what the dealer can and can’t do.
For example to my knowledge auto financing in Canada is required by law to be completely open with no penalties for paying off early.
Good to check into the rules where you are to understand what the dealer can and can’t do.
Toyota's U.S. Financing Arm Fined by Regulators Over Loan-Product Bundling
Toyota's U.S. financing arm was fined $60 million by regulators who said the lender illegally kept consumers from canceling loan bundles that raised the cost of their monthly payments.
Toyota fined $60 million for illegally bundling high-cost protection products - Autoblog
The Consumer Financial Protection Bureau fines Toyota $60 million for a scheme that prevented customers canceling pricy products that increased payments.
www.autoblog.com
CFPB Orders Toyota Motor Credit to Pay $60 Million for Illegal Lending and Credit Reporting Misconduct | Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau (CFPB) today ordered Toyota Motor Credit Corporation to pay $60 million in consumer redress and penalties for operating an illegal scheme to prevent borrowers from cancelling product bundles that increased their monthly car loan payments.
Absolutely hilarious you should definitely report to CFPB for shits and giggles
LOL...agree to the 6-month loan (with no prepayment penalty of course) and pay it off immediately. Tell the dealer to suck it.
I’ve been on a waiting list for over a year. Salesperson called today and said it’s being built on the 28th and sent spec sheet. It’s a premium plus but, I don’t want the digital key, cold weather package, color heads up display, cargo net, tonneau cover, or the mats which are identified as factory installed options and port installed options. salesman says they cannons be taken off because they don’t do custom orders. These add $2700 and another $1000 for port installed options. Plus, I’d like a breakdown of just what a Delivery, processing and handling fee for $1300 entails. So about $3700.00 for “options” I don’t want and another $1300 for delivery, handling and processing. I know it seems trivial when you’re talking about a $69.000.00 car but to me it’s the principle. He says they come standard from the factory but they charge you extra! Has me over a barrel because the car is in high demand. At 70yrs of age, it will probably be my last car and it’s the one I want so I feel I will just suck it up.
Don't look at it as sucking it up or being bent over a barrel. You're 70 years old (I'm 17 years behind you). I picked up my Overtrail on June 7th (coincidentally the day my best friend and father died). This is the first new car I've ever bought myself. Dad bought my sister and me a brand new Suzuki Samurai in '87 when we were in high school. Dad also helped me with the down-payment on a '96 Jeep Cherokee lease when I moved to AZ in '96.
I always bought used thinking to let the new buyer take the depreciation hit. I've bought a lot of nice used cars. But I've also spent easily over the 6-figure mark on repairs and maintenance. I've had a good several past years with my company so I am spoiling myself and I don't apologize for it one bit.
Don't let $3700 in forced "options" discourage you. The trucks are in high demand. Do you want it? So grin and bear the 5.3% penalty ($3700 on $69,000) to get the truck.
I don't think any GX550s have been delivered without the heads-up display and you can sell the cargo net (I sold mine on this page) and the back cargo cover and the mats, etc. That's not a bad list of options. Mine had about $3600 in "options" plus the dealer tried to pull off an additional $12k in "dealer accessories" consisting of tint, PPF on the front, ceramic coating on the exterior and scotch guard on the interior. I not only ponied up for the $3600 in options, I settled with the dealer for $4000 for their bullshit accessories...just to close the deal and get what I wanted.
Do it.
I always bought used thinking to let the new buyer take the depreciation hit. I've bought a lot of nice used cars. But I've also spent easily over the 6-figure mark on repairs and maintenance. I've had a good several past years with my company so I am spoiling myself and I don't apologize for it one bit.
Don't let $3700 in forced "options" discourage you. The trucks are in high demand. Do you want it? So grin and bear the 5.3% penalty ($3700 on $69,000) to get the truck.
I don't think any GX550s have been delivered without the heads-up display and you can sell the cargo net (I sold mine on this page) and the back cargo cover and the mats, etc. That's not a bad list of options. Mine had about $3600 in "options" plus the dealer tried to pull off an additional $12k in "dealer accessories" consisting of tint, PPF on the front, ceramic coating on the exterior and scotch guard on the interior. I not only ponied up for the $3600 in options, I settled with the dealer for $4000 for their bullshit accessories...just to close the deal and get what I wanted.
Do it.
Sorry to hear about your family losses.
Regarding the GX, this is also the first vehicle my wife and I ever purchased brand new.
We absolutely love it.
