Need advice if I'm getting ripped or not

[B3yondL]

A 2005 expedition was listed at 10000. I put a 5000 down payment and did financing for a year.

I have bad credit but I'm not sure if he's bullshitting or not but he said he has to put in a GPS for 500 to make sure I don't 'take off' with the truck. I thought it was stupid for him to charge me for that, I mean he has my address and all my work information as well. And even if he gets to install the GPS, why is he charging me for it? On top of that there's 400 of dealer fees.

So it's actually 10000 + 500 + 400 which is 10900. Is he supposed to charge tax on the GPS plus the dealer fees? Because he did and it then became 10900x1.05 = 11445. 5000 down, which left me with 6445. He then also charged me 15% interest, I know the rate is high but whatever, but is he supposed to charge me interest on the GPS and the dealer fees?

If not, it should be (6445 - 900)1.15 + 900. But he charged 15% interest on the 900 as well. Is it supposed to be like that?

[Weapon_R]

Pretty common with small dealers who approve anyone. How he calculates interest is in their best interest but it's the price you pay for having bad credit.

[NRGie]

The used sales dept. at the Toyota dealership I work at does the same thing for bad credit people (putting a GPS on)

[Twin_Cam_Turbo]

Had an even better one, customer car towed in for not starting, it had both the GPS and a ignition disabler, turns out he hasn't made his payment.

[lamp_shade_2000]

That looks normal. As stated GPS is common on high risk loans with cars. The GPS is a product so there would be tax applied as well. Financing at 15% should apply to everything above the 5000 downpayment.

[Maxx Mazda]

I'll be the first to say, if you can't afford more than $5K maybe don't buy an Expedition at 15% interest.

But hey, what do I know?

[revelations]

Originally posted by Maxx Mazda
I'll be the first to say, if you can't afford more than $5K maybe don't buy an Expedition at 15% interest.

But hey, what do I know?

There is so much common sense here , many peoples heads will explode.

[Cos]

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[GQBalla]

wow i did not know they did things like this.

makes sense but still...

[speedog]

Originally posted by Cos
I thought it was some dealer BS charge. There is actually a GPS thing like that? That is insane! Anyone have a link to it?

TELUS was putting GPS tracking units in their vehicles over 9 years ago and I suspect most large companies with fleets have been doing this for a while - used car sales to high risk people, just another business venture those those GPS tracking companies.

[Cos]

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[Maxx Mazda]

Lots of fleet vehicles have them, but if your credit is SO bad that they're willing to install a GPS to make sure you don't skip town on your payment, you've got bigger issues than GST on a finance charge...

[B3yondL]

I don't mind it being installed but does it have to be 500? It seems too expensive to me plus the fact that he's charging me for it.


I just wanna know whether the dealer fees + GPS is subject to interest as well, just seems a bit sketchy.

[Cos]

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[speedog]

Originally posted by Cos
Oh dont get me wrong. We have GPS trackers on our line trucks too. I am more thinking for privately owned vehicles. When I get into my work truck I know it will be tracked but my own personal truck? That is scary.

Just wondering, don't most GM vehicles with OnStar in them have GPS tracking built in? Probably the same for most manufacturer equipped systems similar to OnStar. Tracking is easy enough these days and now with many vehicles having bluetooth in them that starts up as soon as the vehicle is turned on, that is potentially another albeit more ineffective way of tracking a vehicle. Those traffic time estimation signs on Deerfoot - it's the city just politely using the freely offered bluetooth ID's of the multitudes of vehicles passing those signs.

[sr20s14zenki]

The gps trackers, including the service to run them, cost around that. He is probably charging you for the service of the gps for the length of your contract.

Buying a vehicle with bad credit is a bad idea. Better to buy a junker until you can save enough money for a down payment, to build credit with, or buy outright, and put some money on a prepaid credit card.

[FraserB]

You should be charged for the cost of the unit and to run it, it's not the dealer's credit that is in the shitter. As above, if they are making it a condition of sale and charging 15%, you have bigger issues and probably don't need a gas guzzler that is going to cost an arm and a leg to run.

[Rat Fink]

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[corsvette]

Originally posted by Rat Fink
Financing that old of a vehicle when you already have money issues is probably the most sketchy thing about your situation.....especially while agreeing to 15% interest. Expeditions can quickly become money pits depending on how it has been maintained and driven in its past, and even in tip-top shape they are not very fuel efficient. IMO, with the 5,000 dollar downpayment you have I'm sure you could buy a better vehicle outright.

+1.....I could think you could buy a whole Expedition for $5000, look on Kjiji, you could probably find a nice one owner truck with higer highway KMs that will fit that down payment.

I bought a bank Repo GMC Sierra once, drove home great. Next day go to start it and nothing..... after alot of pissing around I found It had a bad credit tracking device installed under the dash. Took a whole 2 min to disable it lol.

[corsvette]

Heres one...an 04 (same as 05) 186K $6000 obo and you own it outright.....

http://calgary.kijiji.ca/c-cars-vehicles-cars-trucks-2004-Ford-Expedition-XLT-SUV-W0QQAdIdZ474999432

[revelations]

Originally posted by corsvette
Heres one...an 04 (same as 05) 186K $6000 obo and you own it outright.....

http://calgary.kijiji.ca/c-cars-vehicles-cars-trucks-2004-Ford-Expedition-XLT-SUV-W0QQAdIdZ474999432

Wow.... offer that seller 5k and then save the GST as well (500$).

(exploding heads everywhere in this thread lol)

[ExtraSlow]

As mentioned a dozen times above, the guy selling the vehicle isn't the one who's being sketchy, the guy buying is who you should be worried about.
If your credit sucks, try being more responsible with your money. You'd be shocked how fast that helps your situation out.

[whydontchathen]

....whole bunch of unsolicited advice-givin' here. Not on the original topic being enquired about.

[300zxfairlday]

On a side note if you have bad credit getting a car loan and making payments in time and paying it off as quick as possible is one of the only fast ways of fixing your credit. Of course as long as everything such as collections have been taken care of

[btimbit]

Originally posted by 300zxfairlday
On a side note if you have bad credit getting a car loan and making payments in time and paying it off as quick as possible is one of the only fast ways of fixing your credit. Of course as long as everything such as collections have been taken care of

This is what I did when I was 18, got a car loan to build my credit faster.

Anyway, having a GPS tracker is normal for this type of loan, however, this particular deal is scary. If you're going to do something like that, do it with something more reliable (I had an Expedition once... for about a week and a half).

The biggest no-no is the $5000 down payment. If you were doing this with no down-payment, then it'd sound half decent for your situation. I'm going to add my $0.02 and say spend that 5000 on a good slightly older vehicle, there's a lot of vehicles in that price range I'd enjoy just fine

[mmmmm_DSM]

Dont worry about the GPS, its the 15% financing that is the rip off

My line of credit is 5% and I even get pissy with that :eek:

[uv1569]

15% for roach financing is a smoking deal.. If you go with wells fargo its 18% and if its carfinco its 22-28%

[spike98]

Originally posted by 300zxfairlday
On a side note if you have bad credit getting a car loan and making payments in time and paying it off as quick as possible is one of the only fast ways of fixing your credit. Of course as long as everything such as collections have been taken care of

This.

I dont understand why everyone is ripping on this guy. He knows he currently has shit credit which is why im sure he has saved the $5k. Its a great way to build credit and get it back on track.

You have to start somewhere.

Now besides that, i do think that the price of the vehicle is a little high. The GPS and the gay interest rate are to be expected.

Additionally the cost of the GPS and install should be passed onto you. Its the cost of getting your credit back on track. This amount will be added to the total cost of borrowing and subject to interest and gst. If you are THAT concerned about it, pay cash for the install and lessen the down payment but that would be counter productive and work out to be the same in the end.

Chalk this up to the cost of some bad credit mistakes in the past.

[Strider]

Originally posted by spike98
I dont understand why everyone is ripping on this guy. He knows he currently has shit credit which is why im sure he has saved the $5k. Its a great way to build credit and get it back on track.

[...]Chalk this up to the cost of some bad credit mistakes in the past.

People are ripping on OP because overpaying a few thousand for a crappy car at 15% is just the same as any of the poor decisions that got him here in the first place. You can say he's paying the price for past mistakes, but this is just another mistake all on its own.

"Building credit" is just a weak excuse to justify buying a car you can't afford and happens to be a great angle for dealers to create a high margin market out of cars that nobody else wants. In one year, he'll have spent $2,000 to "build credit" - money he'll never get back, and that doesn't even count how much he's overpaying for the truck or depreciation.

Focus on making sound financial decisions instead of the quick fix and better credit follows.

[Danny Meehan]

Got back to Calgary, and I see the new Deerfoot estimate-time signs

Is it really based on vehicle Bluetooth signal recognition ?

[sr20s14zenki]

Originally posted by Danny Meehan
Got back to Calgary, and I see the new Deerfoot estimate-time signs

Is it really based on vehicle Bluetooth signal recognition ?

wtf? lol

[speedog]

Originally posted by Danny Meehan
Got back to Calgary, and I see the new Deerfoot estimate-time signs

Is it really based on vehicle Bluetooth signal recognition ?

Yupp - link (http://www.calgary.ca/Transportation/Roads/Pages/Traffic/Traffic-management/Bluetooth-detection-system.aspx).

[Dilmah]

I'd be leery on signing this, make sure it doesn't have a charge at the end of the contract to have the GPS unit uninstalled or some kind of a fee to have it deactivated.

[ExtraSlow]

Originally posted by Strider
"Building credit" is just a weak excuse to justify buying a car you can't afford and happens to be a great angle for dealers to create a high margin market out of cars that nobody else wants. In one year, he'll have spent $2,000 to "build credit" - money he'll never get back, and that doesn't even count how much he's overpaying for the truck or depreciation.

Focus on making sound financial decisions instead of the quick fix and better credit follows.
100% this.

[btimbit]

Originally posted by Strider


People are ripping on OP because overpaying a few thousand for a crappy car at 15% is just the same as any of the poor decisions that got him here in the first place. You can say he's paying the price for past mistakes, but this is just another mistake all on its own.

"Building credit" is just a weak excuse to justify buying a car you can't afford and happens to be a great angle for dealers to create a high margin market out of cars that nobody else wants. In one year, he'll have spent $2,000 to "build credit" - money he'll never get back, and that doesn't even count how much he's overpaying for the truck or depreciation.

Focus on making sound financial decisions instead of the quick fix and better credit follows.

I think it's a decent enough idea, but should be done to a lessor extent. Finance something cheaper (like half that) and more reliable, if you're paying 15% interest, you don't want to be messing around repairing the damn thing.