Car dealer lied about interest rate

[eyeonforever]

A car dealership told me that they could get 9.8% interest rate on my auto loan and I signed the contract believing that this is what was written down. Now a month and a half later, I looked at the contract and it said 15.28%. He had given me the payment amount of $500.74 which I agreed to based on believing this is what the payment would me for this car at 9.8%. I signed the contract. Of course they have that clause "any verbal promises are not valid but only what is written" I was deceived twice. Doesn't that mean that under the law I can break the contract if one party deceives the other?

 

[quincy]

A car dealership told me that they could get 9.8% interest rate on my auto loan and I signed the contract believing that this is what was written down. Now a month and a half later, I looked at the contract and it said 15.28%. He had given me the payment amount of $500.74 which I agreed to based on believing this is what the payment would me for this car at 9.8%. I signed the contract. Of course they have that clause "any verbal promises are not valid but only what is written" I was deceived twice. Doesn't that mean that under the law I can break the contract if one party deceives the other?

Can you break a contract you signed without reading or understanding its terms? Yes. But you can face penalties for doing so.

 

[Zigner]

Doesn't that mean that under the law I can break the contract if one party deceives the other?

Huh? It was right there in black and white.

 

[adjusterjack]

A car dealership told me

"I was told" = The most dangerous phrase in the English language.

a month and a half later, I looked at the contract

Pity you didn't look at it before you signed it. The interest rate was right there in front of you.

He had given me the payment amount of $500.74 which I agreed to

Yep, that's how they do it. Get you to agree on the payment amount and hope you don't notice anything else.

I was deceived twice.

I'm the last person to come to the defense of a lying, thieving car dealer but this time it's on you for not reading what you signed.

Doesn't that mean that under the law I can break the contract if one party deceives the other?

Not without consequences. A repo, trashed credit, possibly a lawsuit.

 

[PayrollHRGuy]

A car dealership told me that they could get 9.8% interest rate on my auto loan and I signed the contract believing that this is what was written down. Now a month and a half later, I looked at the contract and it said 15.28%. He had given me the payment amount of $500.74 which I agreed to based on believing this is what the payment would me for this car at 9.8%. I signed the contract. Of course they have that clause "any verbal promises are not valid but only what is written" I was deceived twice. Doesn't that mean that under the law I can break the contract if one party deceives the other?

And how do you intend to prove that they told you the interest rate was 9.8% when they have a contract, signed by you, that says it is 15.28%?

 

[BuyLowSellHigh]

Is there a prepayment penalty? If not, go to a bank or credit union and refinance the car loan at a better rate as soon as you can.

 

[eyeonforever]

"I was told" = The most dangerous phrase in the English language.



Pity you didn't look at it before you signed it. The interest rate was right there in front of you.



Yep, that's how they do it. Get you to agree on the payment amount and hope you don't notice anything else.



I'm the last person to come to the defense of a lying, thieving car dealer but this time it's on you for not reading what you signed.



Not without consequences. A repo, trashed credit, possibly a lawsuit.

I found this in the Iowa law

Prohibited acts

Any unfair practices as defined under Iowa law to be an act or practice that causes substantial, unavoidable injury to consumers that isn’t outweighed by any consumer benefits the practice produces. Also, any practices or acts that a person knows or reasonably should know are unfair, deceptive, fraudulent, false, or are misrepresentative or conceal an important fact with the intent that others rely on in connection with a sale of consumer goods.

Now don't you think this would negate any written interest rate and deceptive payment? I believed the payment was based on the lower rate and by the way, I contacted one of the possible financiers and they had given the dealership of 14.1% which is less than the 15.28% they charged. Sounds fishy, do you suppose they are getting a kick-back from the f
inancier they used?

 

[Zigner]

I found this in the Iowa law

Prohibited acts

Any unfair practices as defined under Iowa law to be an act or practice that causes substantial, unavoidable injury to consumers that isn’t outweighed by any consumer benefits the practice produces. Also, any practices or acts that a person knows or reasonably should know are unfair, deceptive, fraudulent, false, or are misrepresentative or conceal an important fact with the intent that others rely on in connection with a sale of consumer goods.

Now don't you think this would negate any written interest rate and deceptive payment? I believed the payment was based on the lower rate and by the way, I contacted one of the possible financiers and they had given the dealership of 14.1% which is less than the 15.28% they charged. Sounds fishy, do you suppose they are getting a kick-back from the f
inancier they used?

It was NOT deceptive, unfair, or fraudulent. You had the number right there in front of you, clear as day. FURTHERMORE, you accepted and acknowledged that "any verbal promises are not valid but only what is written". In other words, your WRITTEN contract is the only thing that matters.

 

[eyeonforever]

It was NOT deceptive, unfair, or fraudulent. You had the number right there in front of you, clear as day. FURTHERMORE, you accepted and acknowledged that "any verbal promises are not valid but only what is written". In other words, your WRITTEN contract is the only thing that matters.

 

[adjusterjack]

do you suppose they are getting a kick-back from the financier they used?

Of course they are. It's called a "commission" for writing the loan with that finance company. It's legal and has nothing to do with you signing a contract that you didn't read.

 

[eyeonforever]

It says "the person knows they are being deceptive....and that someone is relying on the deception" is an illelgal act. He told me the payment and I assumed that was the payment was based on the lower rate and he knew that was what he was doing and that I would assume that payment was based on the lower rate and I counted on him to tell me the right payment amount--was I supposed to carry an amortization calculator and since he didn't give me the lowest rate, am I expected to call every lender to make sure he isn't lying to me? I think not. He has broken this consumer protection law.

 

[bcr229]

Of course they are. It's called a "commission" for writing the loan with that finance company. It's legal and has nothing to do with you signing a contract that you didn't read.

IIRC if the buyer/borrower doesn't make a minimum number of payments, typically three, then the car dealer doesn't get the commission. So, I would also suggest running to your bank and refinancing that loan immediately.

There were no deceptive practices here. Anything that was said is irrelevant compared to words and numbers on paper. At least this was just a car loan and fairly easily fixed. People really make stupid - and expensive - mistakes when people fail to read real-estate contracts.

 

[Mass_Shyster]

I agree that they deceived you, and probably broke the law. The problem you face is you cannot prove they did so. You signed the agreement with the interest rate on it.

Go refinance the car through your local credit union. I just checked and mine is offering 3.24% for a 72 month loan. Let the dealer know that you feel you were deceived and you will never purchase from them again, and from now on, read everything you sign. I also suggest you pull out your phone and photograph everything you're asked to sign, just in case they "forget" to give you a copy.