Β #CarFinancing #ExtendedWarranty #CarBuyingAdvice ππ°
Hey everyone! π So my boyfriend and I are in a bit of a pickle with buying our first car. We found the perfect used 2021 Toyota Rav4 with low miles and an extended warranty until 2026. But when we tried to get financing, the dealership is saying we HAVE to buy an additional warranty to qualify for financing. Here’s what we’re dealing with:
– The warranty costs around $3000 π±
– It would increase our monthly payments by $80 πΈ
– The interest rate offered is 10.5%
We’re not sure if it’s worth it to buy the warranty just to get financing. What would you do in our situation? Any advice or insight would be greatly appreciated! ππ€
Possible solution:
– Look into alternative financing options outside of the dealership
– Consider negotiating for a lower interest rate or a discounted warranty price
– Think about whether the added cost is worth the peace of mind the warranty provides
Let’s chat and help each other out! π€ #CarBuyingHelp #FinanceOptions #FirstCarExperience
walk away
It isn’t required by the bank. The dealership is requiring it because they wantΒ to sell you something that costs more.
If you don’t want the warranty, tell the dealership to remove it or you won’t buy the vehicle. If they won’t remove it, don’t buy the car.Β
Go to another dealership and find a car that you can afford. A car that you can afford is one that ideally you can pay for in cash, or pay off as quicklyΒ as possible.Β
go somewhere else
They already got you at 10.5%, now they’re trying to squeeze more out of you. I’d walk away
dealerships will continue to exist until we either vote for someone to make them heavily restricted, or we stop giving them money. bloody parasitic useless industry.
Just walk away from that deal, no car is worth 10% Apr.
Not even a Toyota.
Edit: Iβve purchased 8 cars and an extended warranty was never a requirement for a loan to be granted. The stealership is just milking you.
So what exactly is this second extended warranty? It likely doubles exactly what you already have. As someone else said, have them get creative and drop the price by that amount and add in the warranty. Can you get financing through your own bank? I’ve never taken dealer financing, but the last time I bought a car was pre-Covid.
Forget about the warranty … run!
Why in the world would you buy a car at 10.5% interest? That is madness.
Run away. Theyβre trying to take advantage of you.
On used? Lol walkaway
Don’t buy a car based on monthly payment. Tell the lady to go pound sand, walk out and report to OMVIC if in Ontario.
DO NOT BUY THIS CAR! Try another dealership. They’re bullying you to see what they can squeeze out of you.
Walk away. This sounds like an awful deal. Even for used, that’s not a great rate. Now they want to add more to the price that you’ll pay 10.5% on? They are full of shit, the bank could care less if you buy warranty. Even if they change their tune I’d be hesitant to work with this dealer any further.
Absolutely not! And I would choose a different dealership because they are lying to you.
Walk. Warranty is optional.
10.5% is pretty bad tbh, but it’s Toyota, they feel like they can get away with anything.
Give you high interest rates, tack on extra warranties.
Honestly, check out other Japanese brands, who don’t treat customers like poop.
Besides, Toyota is under scrutiny for a lot of falsified tests.
We just purchased from Toyota. The business office dude keto pushing the warranty on a brand new car. He starts using buzz words like “you don’t value keeping your investment protected”, he tries to convince us that $42K is spending like $50K so $100/month for a warranty is a good deal.
I replied back to him that it’s not a debate and we have already told you we don’t want the warranty. I also said, it’s seems it’s you that it is more valuable to you, not us.
He moves on to trying to sell us the rust protection gizmo. Told him to pass and move on to getting the paperwork signed.
As everyone here said, walk away.
Tell the dealership you are buying from another dealer. Did you check with your bank if they can finance a car at a better interest rate?
Scam
If a bank tried this it would be considered tied selling which can be illegal [depending on the circumstances](https://competition-bureau.canada.ca/restrictive-trade-practices/exclusive-dealing-tied-selling-and-market-restrictions). Like others have said, walk away if they insist on this. Maybe talk with your car sales rep and tell them you are about to walk away if you have to buy the warranty.Β
Financing at 10% is crazy..
post dealership
Walk away. Donβt deal with dishonest people
Walk away. Thatβs bs on the dealerβs part. You donβt need to buy a warranty.
Walk away and leave a Google review detailing the experience?
“Really? Show me where it says that. You know what, give me a couple hours to see what my bank can do for financing, because that rate is already kinda high.”
Then just walk away. If they call and offer you something like 5-7%.financing, no extra trash add-ons, then you’re good. If not (they probably won’t), well, they’ll just scam someone else.
Also compare rates with new, the wait time on a new rav 4 (expect similar crap on delivery), and then re-evaluate how badly you want that particular vehicle. The rav4 is a really hot model right now so chances are if you want one you should bust out the lube.
If they advertised the vehicle anywhere at the price you are seeking to buy it at, they are now “drip pricing”. Ask them to confirm that they are aware of what “drip pricing” is, and how the government views it.
What province is this? In BC there is a rule against tied selling.
Also, is your credit new? I’m curious as to why your interest rate is so high.
Is it possible to get financing from somewhere else? You don’t have to finance through the dealership. Hard to believe 10% is the best rate you can get albeit you’re new to the country so maybe it is.
>10.5% interest rateΒ
Just buy a new car
Ask yourselves, do we really need a car? maybe focus on walking and using transit
Walk away. They are lying to you. Car sales are ruthless. You need to be able to walk away. Give them your terms, period. If they aren’t able to meet them, move on.
Every time I think that it’s becoming a buyer’s market again, posts like this remind me that we’re not even close yet.
I’ll keep my clunker until these these useless dirt bags go back to normal.
Say as little as possible when you stand up, shake their hand, and tell them ‘thank you for your time, but I found a better deal’. Watch the change in the tone.
Itβs a bs you can get a lower rate go get a personal loan from the bank
I have a feeling you will be paying close to a new car once you factor in all the costs.
10% is super high, I had no job and bad credit in 2021 and got 6.15% but interest rates have gone up. Toyota is reliable but so many dealerships are offering pretty exceptional deals right now thatβs not really competitive enough to stay brand loyal. Ford is practically trying to give away Broncos right now and dodge is doing the same with their Hornet.
Simply tell them in that case we’ll go to one of the other 100 dealerships that want to make a sale. Then when they back track tell them you want a set of winter tires or something thrown in for them fucking around. Lol idk about that last part but worth a shot
At 10% I would go talk to your bank about a car loan and then cut a cheque for a vehicle unless the dealership can beat that rate.
IMO a Toyota at its current costs does not warrant the price dealerships are asking. They are no longer cheap reliable vehicles compared to other vehicles on the market.
10.5%??? for the love of Christ please donβt