Joan H on BBB
2 years ago
02/04/2021, 08:25 AM
On 1-27-2021 I met with salesperson Ken ******outside of the dealership and said I was interested in the 200,000 warranty. He explained it to me and we then went inside and did some preliminary paperwork. I told him I wanted more of a base model as I wanted to keep the payments low. My husband was in the area and came by to see vehicles and do a test drive. We looked at a Kona, but it was too small and I wanted something similar to what I had, which was a 2014 Chevrolet Captiva. We then looked at a 2020 Tucson and took a test drive. I liked it.
I wanted to know more about the financing and what my payments would be. I did not intend to buy a car that day, and shared that with Ken, but wanted to know what kind of costs we would be looking at. Ken spoke with his manager Jeremy, and he came back with an Estimate Sheet (my term, as the sheet did not have any title) that included the cost of new vehicle (around $28,000), trade in value of $3000, a rebate and various monthly payments based on length of the loan. The payments were way too high, I actually had sticker shock (It has been a while since I purchased a new vehicle). He then shared that with Jeremy and they came back and explained that If I financed with Hyundai, I would receive a $3750 rebate versus $2000 if I used my credit union. Jeremy *****also said the interest rate would be 2.9%. I said I wanted to check with my credit union to see what rates they could offer. Jeremy even tried to find their rates on-line while I tried to call the credit union. Eventually my credit union called me back and told me the rate would be 2.3%. Jeremy said that the difference between the two rebates ($1750) might be hard to make up with the credit unions interest rate.
Jeremy wanted to know what kind of payment I was looking for. And what would it take to get me to purchase a vehicle today. I told them I did not know as I had not intended to buy a vehicle that day. My last car payment was just over $200 so when I saw rates over $400 - $500 I wasn’t interested. I also told them I did not want the loan to go over 60 months.
They then left and brought back new figures. They lowered the selling price to $27,000, rebate of $3750 and increased the trade in to $3500. Monthly payment was still well over $400, still too high for me. Jeremy asked if I could put any money down. I said to recalculate with $5000 down. Again, they came back and it was still over $400. Again, I was not comfortable with that monthly payment. Jeremy wanted to know what monthly payment would I be comfortable with. I told them it had to be under $400. They again left and did additional calculations and came back with a monthly payment of $389. After some discussion with my husband, I accepted. While the paperwork was being prepared, we then went home to empty my car, get the title and the extra set of keys for the trade-in.
I returned by myself to sign the papers as the deal had been agreed upon. At that time Geoff *******, Sales Manager came over to verify some information and exchange some small talk. He then mentioned a 100,000-mile warranty, and some additional protection, and part of me thought he was trying to sell me something but I also thought maybe he was talking about the warranty that came with the vehicle purchase. He then said I can reduce your interest rate to 1.9% and your payment to $357. I thought that was great, and said let’s do it. He revised the paperwork and then proceeded to have me sign multiple papers. Unfortunately, I am a trusting individual and did not review the numbers or what I was signing. I did ask again how he was able to reduce the interest rate and he said because of the additional protection and my investment, the finance company was able to lower the interest rate. This should have been a red flag, but I missed it and thought maybe that the additional $5000 I put down was the investment he was referring to. My error.
When I got home that evening and started reviewing the paperwork, and I found a pamphlet for a Vehicle Service Contract. l then started to review the purchase agreement. There it was, a line-item showing Warranty Trust Company for $3800. I was shocked. Never once did Geoff mention a cost of $3800, only additional coverage and that he could reduce my payment and the interest rate. So, when I signed the multiple papers, I did not review the numbers as I trusted the numbers would be as we discussed. Also, why would I think any additional costs would be added since my monthly premium was being reduced by $32.
I then did some calculations to determine what my payment would be removing the Vehicle Service Contract and using the 2.9% interest rate as I then understood that the 1.9% interest rate was associated with the Vehicle Service Contract. To my surprise, the new monthly payment should be $298, not $389 that was shared with me on the Estimate Sheet, actually $90 less. I have a copy of the last Estimate Sheet that shows the $389 monthly payment.
The next morning (1-28-2021 @ 9 am) I went back to the dealership and asked to talk with Geoff *******. He was all business and we went back to an office to discuss. We discussed the Vehicle Service Contract that I told him I did not realize that I had purchased. He explained to me that we discussed the additional protection the night before. I told him that I was confused, and that he never showed me the Vehicle Service Contract pamphlet (with 4 different options) nor did he mention the additional $3800 being added to my purchase agreement. I told him that I believe he should have shared the pamphlet with me to avoid any confusion. He said he wanted to make things right and would discuss the issue with the finance manager to determine what could be done, however the finance manager would not be in until later that day.
I also brought up the monthly payment of $389 on the Estimate Sheet, and told him I believed it should have actually been $298 based on the 2.9% interest rate Jeremy indicated. I shared my calculations with him so they could be reviewed in case I missed something. Geoff explained that he had not been the one to do those calculations on the Estimate Sheet and he would have to discuss with Jeremy, the other sales manager as he provided those numbers. He also explained that Jeremy had only been with Hyundai a couple of weeks. I told Geoff I wanted some answers, and had they provided me with the $298 monthly payment initially we could have eliminated some of the negotiations.
Later that day, Tim, the finance manager called me saying that Geoff had asked him to call. He understood that I wanted to remove the Vehicle Service Contract. I asked him what the new monthly payment would be and he said he had not done the calculations yet but would have the paperwork ready for our meeting. He said it appeared that I was approved for an interest rate of 1.9%. I agreed, but also told him that I believed that rate was based on the purchase of the Vehicle Service Contract and that 2.9% was probably the appropriate rate but I would gladly accept the 1.9% if they wanted to give that to me. We set up a meeting for the next morning (1-29-2021 @ 11:30 am).
When I met with Tim the next morning he asked if I wanted any additional coverage, I declined. He voided out all the appropriate paperwork. I asked for copies of the voided documents. He rolled his eyes and said “you want copies of the voided documents?”. I said yes as I was not happy with the way things had been handled and that I was not aware that I purchased the Vehicle Service Contract. I also said that Geoff never shared the Vehicle Service Contract pamphlet with me. He said he never shares the pamphlet with customers. He then said in so many words that I signed the documents approving the purchase. He was correct, my error. I told him that I should have reviewed the documents before signing. He said that you should never sign anything without knowing what you are signing, and then showed me where I signed 4 different documents. I felt he was very judgmental and basically rude. I then said you are not giving me the impression that you want my business again. He said that he already had the impression that I was not coming back. After review of the new documents with a monthly payment of $298, I signed. He then gave me a copy of the Retail Installment Contract and Security Agreement. I also asked for a copy of the Retail Purchase Agreement, as I had not gotten a copy with the original agreement and did not even know when my first payment was due. Again, it seemed to annoy him that I asked for these copies. Although the new purchase agreement was signed on January 29th, the newly signed documents still show January 27th.
I also asked Tim if he could explain to me how the monthly payment of $389 was calculated when it should have been $298. He said that Estimate Sheet does not list an interest rate, which he is correct. He said they use an average interest rate and asked where I got the 2.9% rate. I said that Jeremy told me that. Apparently, I didn’t dream up that rate since that Is what was given to me with the new agreement.
I never did get an answer as to how the $389 was calculated. I estimate the interest rate to be approximately 14.3% unless they added some underlying costs into the calculations. My credit score is usually around 840, so this type of interest rate would not be applicable or acceptable. Something just wasn’t right and I only wish that I had done some homework. Lessons learned.
On a positive note, Salesman Ken ******couldn’t have been more professional, courteous, thorough and kind. Ken’s only involvement appeared to be to present me with the documents for review. With the exception of the first presentation, he was accompanied by Jeremy, the sales manager who quoted the interest rate and calculations. Ken did not appear to be involved in the calculations.
I bring this to your attention as I do not feel this is the way customers should be treated. I prefer that everything be upfront. I feel as if I was being deceived in both the Vehicle Service Contract and the monthly payment calculations. I would ask that you investigate these issues and respond to me using the address below.
In the end, I got the same deal that I should have initially been presented to me. So, nothing lost other than a deflating shot to my ego.