P5 good...Mazda bad

[sykotick]

So here is was happened to me today...I bought my P5 exactly two weeks ago, the dealership calls me and says they need me to come in. I get there and turns out, despite the fact I have two contracts stating 0% interest, Mazda wouldn't approve me. They say I can take 4.9%. I say I want to think about it, they tell me I can't because its not my car. Long and short of it is I got screwed into paying about $2500 more for my car. I have a contract lawyer looking into it but I was wondering if anyone knew something else I could do or someone I could contact to at least scream a lot (probably won't change anything but at least I'll feel better.)

P5: Great car
Dealership: Liars and cheaters
Mazda: Don't get me started......

 

[WaatDaHell]

Shouldn't the approval process have been completed before you sign papers for the car?

 

[sykotick]

You'd think...or at least within the two weeks I've owned the car

 

[Jim Frye]

It's an old dealer scam...

and it's detailed at http://www.carbuyingtips.com/finance.htm
Most likely, the dealer knew your credit score (and knew you wouldn't qualify) before you drove out the door with the car. You should have known it too. The dealer was betting that you would do most anything to keep the car after driving it for two weeks. The sad part is that it is perfectly legal if the eligibility disclaimer was explained to you up front, and I'll bet lunch it was. Most people think their credit is a lot better than it really is. For $40, you could have gotten your credit report on line and known if you were eligble for the 0% loan up front.
By the way, very few people make the grade. You need a FICO credit score at the very high end of the range for most dealers to get you into the ultralow rates. FICO scores run from 300 (really BAD credit) to 850 (perfect credit). You may have to chalk it up to experience. For what it's worth, I've used the information from the above web site and saved several thousands of dollars on the last three cars I've purchased.
If it's any consolation, 4.9% isn't really bad for a car loan. Over the years, I don't think I've ever had one that low. I'm paying for our P5 with a 4.25% equity line of credit and my lowest car loan before this was 6.9%. When we bought our P5, 4.9% was what Mazda was offering on P5s and the banks were offering 6.25% for new cars. Jim

 

[Pirana]

Jim you hit it right on the head. When I bought my P5 the lowest Mazda was offering was 4.9% (Ford and Chevy had 0%). I knew we would qualify for the lowest % offered, and we were told that yes it would be no problem with our credit. When we were about to sign the papers, I looked at the monthly payments and it was about $75 extra/month. I immediately jumped and asked what the hell was that. He did not seem amazed or anything else, then looked at the computer and said, Oh you are right it should be 4.9% not 8%. You got to be very attentive at what they do. Its called making money on the back (interest, additives, lo-jack, etc).

Good Luck!