Auto dealership changes contract to lower monthly payment

[atlaswv]

Hello,
This could be a stupid question, but we bought a used car a few days ago, signed the contract etc. I got a call today from the finance department, they want to re-write the contract to lower our monthly payment. I asked why, they said they could lower the interest rate and they also lowered the price on the car.
I mean, this sounds really good, but in today's world this sounds unusual. I hope there's nothing wrong with the car..lol…
is this possible? what do you think?? Thank you for your input!

 

[Zigner]

What US state?

 

[atlaswv]

California...

 

[PayrollHRGuy]

My bet they are trying to get the finance to be approved. When/if you sign a new contract make damn sure they don't increase the term of the contract. (ie. From 48 to 60 months.)

 

[atlaswv]

that's a good point, thank you. Our credit is well over 800.... so I'm hoping finance approval is not an issue... would it be possible that we just got lucky? is there such a thing? but yeah, we'll check the terms for sure, thank you!

 

[PayrollHRGuy]

I can't think of any reason other than I mentioned that they would simply drop the price of the car. The interest rate I can understand but not the price.

 

[atlaswv]

That's exactly what puzzled me.... thanks again! we'll know more tonight, I just didn't want to go there totally "uneducated". have a great day!

 

[PayrollHRGuy]

Let us know what you find out.

 

[BuyLowSellHigh]

Before you sign it, you may want to take your new loan agreement to a local credit union or bank to see if you can get a better offer.

Even after you sign it, you can still look for a better offer and refinance it later. You should review and be aware of any prepayment penalties.

 

[atlaswv]

Let us know what you find out.

So, this is interesting..... the financing bank decided that the amount they'd have to finance on this purchase is a $1000.00 more than what they would finance at the interest rate they quoted us at the time of purchase. The dealership, in order to keep the quoted and agreed-upon interest rate (and our monthly payment), decided to lower the price of the car. They didn't want to ask us for an extra $1000.00 as down payment or increase our monthly payment because "they liked us and wanted to keep us happy". This is a well-known dealership here, and for sure they'll get referrals from us. All terms and conditions of the contract remained the same. I don't think things like that happen often, so I'm very thankful. And also thank you so much for your interest in this case and your responses!

 

[atlaswv]

Before you sign it, you may want to take your new loan agreement to a local credit union or bank to see if you can get a better offer.

Even after you sign it, you can still look for a better offer and refinance it later. You should review and be aware of any prepayment penalties.

Yes, we checked, there's no prepayment penalty, which is great! thank you for your response!

 

[PayrollHRGuy]

So, this is interesting..... the financing bank decided that the amount they'd have to finance on this purchase is a $1000.00 more than what they would finance at the interest rate they quoted us at the time of purchase. The dealership, in order to keep the quoted and agreed-upon interest rate (and our monthly payment), decided to lower the price of the car. They didn't want to ask us for an extra $1000.00 as down payment or increase our monthly payment because "they liked us and wanted to keep us happy". This is a well-known dealership here, and for sure they'll get referrals from us. All terms and conditions of the contract remained the same. I don't think things like that happen often, so I'm very thankful. And also thank you so much for your interest in this case and your responses!

I thought about that last night but it was too late to post. Congratulations you got a better deal.