#CarFinancing #ExtendedWarranty #CarBuyingAdvice 🚗💰
Hey everyone! 🌟 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 😱
– It would increase our monthly payments by $80 💸
– 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! 💭🤔
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! 🤝 #CarBuyingHelp #FinanceOptions #FirstCarExperience
10.5%??? for the love of Christ please don’t
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.
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
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 that’s 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.
I have a feeling you will be paying close to a new car once you factor in all the costs.
It’s a bs you can get a lower rate go get a personal loan from the bank
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.
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.
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.
Ask yourselves, do we really need a car? maybe focus on walking and using transit
>10.5% interest rate
Just buy a new car
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.
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.
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.
“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.
Walk away and leave a Google review detailing the experience?
Walk away. That’s bs on the dealer’s part. You don’t need to buy a warranty.
Walk away. Don’t deal with dishonest people
post dealership
Financing at 10% is crazy..
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.
Scam
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?
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.
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.
Walk. Warranty is optional.
Absolutely not! And I would choose a different dealership because they are lying to 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.
DO NOT BUY THIS CAR! Try another dealership. They’re bullying you to see what they can squeeze out of you.
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.
On used? Lol walkaway
Run away. They’re trying to take advantage of you.
Forget about the warranty … run!
Why in the world would you buy a car at 10.5% interest? That is madness.
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.
Just walk away from that deal, no car is worth 10% Apr.
Not even a Toyota.
Edit: I’ve purchased 8 cars and an extended warranty was never a requirement for a loan to be granted. The stealership is just milking you.
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.
They already got you at 10.5%, now they’re trying to squeeze more out of you. I’d walk away
go somewhere else
It isn’t required by the bank. The dealership is requiring it because they want 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.
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 quickly as possible.
walk away