Actually, I would get out of it no matter what at this point. Forgive me for pointing this out, but why are you buying a new car anyway? You can get a perfectly servicable vehicle for 5-6k that you could better afford. Then in a year or so when you have your FICO above the scary level, upgrade.

Once the dealership started to screw you, like the GAP thing, you need to back out. GAP is available from your own insurance company most of the time anyway, for MUCH cheaper.

Scions come with a warranty, unless your planning on keeping the car for more than a decade it probably wasn't worth it.

give teh car back... simple... get ur car back... if they do not give it back to you call the cops... they only loose money... that intrest is high, even for my 580 credit score

Take the car back and be done with it while you can. Do it now, don't try to keep the car. Get the GAP back and the extended warranty.

Financing $20,000 at 13% is highway robbery and you're only shooting yourself in the foot financially if your credit is only so-so. By my calcs, your payment is around $455 a month and you'll end up paying over $7000 in interest in only 5 years.

You are paying over $27,000 for that car, it is not worth it.

If 13% is the best rate you can get (which they claim you can't) then you should buy something much more affordable and revisit the car situation when your credit is better, you have more cash to spend and your APR is more agreeable.

Trust me, dodge this bullet now and in 2 years when you are in better fiscal shape you can buy a sweet car on your own terms and feel much better about it.

Heads up, the link the Lemon Law isn't functional.

consider this a blessing in disguise and return the vehicle asap. 13% is robbery. If your credit is that bad then work on getting it straightened out instead of financing a new car at twice the interest rate that it should be

@joeblevins: Agreed, damn you for posting my thoughts before me.

Easy solutions to simple questions. Hey I can't afford this car, should I still try even though they are scamming me? Ummmmmm noooo. Not a hard solution to buy used, I have never had a new car in my life.

Yeah I would consider it a blessing. You shouldn't be buying that much CAR. Save 5-6 K and get a used one. 11% id stupid.Return it tomorrow!! Get out while you can.

$470 a month for a scion...damn who would pay that for those fugly cars? Sorry, the TC isnt bad but the rest...horrid.

You should never have taken the car without having the deal set in stone. Its not worth the risk these days. Also why did it take them 2 weeks to call? Normally they should know if you were approved or not by the next day even if they have to hit up 5 banks.

Get out of this deal. You can't afford the car. Buy a used car for cheap elsewhere.

However, because you used the car (from a new car) they're gonna go after you for some money even after you return the car to them. Your deposit is gone and honestly, not worth fighting for. If they let you out of this deal for $500, consider yourself lucky and leave--but I don't think they're gonna stop at $500.

When you say you have a blank check from Capital One--are you talking about a credit card advance check? You have a credit limit of over 20K with Capital One? This sounds bad from both sides--stop and get out of this deal asap.

Give the car back and go to a GM dealer. They're so desperate to make a sell that when I bought my Saab this summer, I was offered a car with $3000+ options instead of the base manual that I wanted for the same price. Thanks to incentives and such, I paid less for the Saab than I would have payed for a Fusion or Accord equipped to my standards. All that on a credit score befitting a recent college graduation that lived off of credit cards for three years.

Wait a minute--you put 1300 miles on a car in 2 weeks?

If you look through your paperwork, you will probably find a form called something like "Bailment and Revision Agreement". You signed it. Read this. It basically states that your financing is not actually approved when you took delivery of the car but that the dealer expects that they can get your financing approved at the terms on the contract. If they are unable to do so, you have the option of signing the new contract with the corrected terms OR you can return their vehicle, with a catch. You are liable for any damage, excess wear and tear and excessive miles. Any mileage driven over the amount specified (usually a miles per day allowance) will cost you $X amount. They will probably take that money out of your down payment before refunding it.

You say you bought it exactly 2 weeks ago and have driven 1300 miles. Many dealerships use 20 miles per day as the allowance. At 14 days, that's 280 miles. You may be responsible for the cost of the additional 1020 miles @ around $.25 per mile = $255 or so that you will *legally* owe the dealer.

Good luck, man. Its a tough spot to be in. I *always* tell people to get pre-approved (at a minimum) at their own bank before going shopping. This accomplishes a couple of things: now you know your exact rate and the amount you have to stay under. If the dealer can offer a better rate, take it.

"Andriy doesn't own the car and so here it is, thanks for the free ride, give me my money back or I'll sue you in small claims court."

Can he still do that? Almost all car contracts have a binding arbitration clause these days.

Anyone know?

I think you would be wise to get out of the deal if you can, but if you go in there and start complaining I think they would just settle for the initial screwjob and give up going for the extra-special screwjob, and let you pay the 470. I would approach them with the intent of drawing up a NEW contract, then drop the warranty and gap coverage, and insist on a new, lower APR, and when they refuse, just walk. I think you owe them rental car rates for the use of their car which could be $.45 cents per mile. Losing the $500 would be cheap IMO.

Report this dealer to Toyota US HQ, to Toyota Motor Finance, and BOTH of them to your local Better Business Bureau, regardless of what you decide to do to get yourself out of this. They are yanking your chain and trying to scam you. At least try to protect the next poor fool who walks into that dealership.

With my first Saturn, a car I loved BTW, I had some issues with the local service dept jerking me around when they damaged my car while it was in for a warranty repair. Every time I brought it in for them to fix the last thing they messed up, they managed to break something else. I called Spring Hill TN and they got it straightened out darned quickly, since Saturn is supposed to be all about a good customer experience. Both the local dealership and the Spring Hill office followed up with me repeatedly to make sure things were put right. (I had told the local guys that I had called Spring Hill, and that I would call them again to let them know the issue had been resolved if it ever got resolved. And I kept my word.)

It was resolved well enough and quickly enough that I bought my second Saturn 10 yrs later(a different state and dealer since I had moved 3 times by the time a needed a new car). Hope to drive this one for 10 yrs as well.

But do tell Toyata US HQ--this is NOT the image they hope to promote. They'll give the dealer a major headache over this, I'm sure.

@warf0x0r: It should be spelled out in his contract. Some brands, like Saturn, have a 30 day return policy on the car, believe it or not.

But I'd agree it's more likely that they will charge the guy some sort of rental/mileage fee.

It should all be in his contract.

Finance manager pressured me into purchasing GAP and extended warranty (around $2100 total) saying that banks would likely grant me a loan if I show them I'm serious about investment.

A new car is not an investment. It is a good that depreciates in value. I'm unsure if using the word "investment" is just due to common ignorance on the part of the finance guy, or the fact that the word "investment" makes it sound more like a smart and rational financial decision.

It is not. You cannot afford this car.

If purchasing GAP seems smart, you cannot afford the car. Said another way, if you cannot afford the loss due to depreciation, you cannot afford the car.

Also, if you need to purchase an extended warranty, you may need to reconsider the overall value of the car and it's reliability. There are likely other options out there with better warranties.

I have to say it, its the gamer in me, You got PwNeD!

I just bought a used car with only 3k miles on it and less than a year old, thats a full size sedan and paid after tax and license the same that you did and only had an 8% interest rate.

You sir chose a car that is too popular for your own good. Also 1200 miles in 2 weeks? You picked the wrong car for that. Do like someone mentioned and get a used car with 20k miles on it or something. You should be able to get it for less than half that price.

I guess there really is a sucker born every minute. This guy has done everything wrong. First off, he clearly should not be shopping for a car on his own. He let the sales guys do what they do and sold him more than he wanted and more than he could afford. What in the world is a person deep in debt, with bad credit, who owes people money doing buying a brand new $20k car? Not to mention the excellent interest rate he agreed to. Seriously, 13%? I could put that car on my credit card at nearly 1/2 that. I just don't understand the logic (or lack thereof) that some people employ in their daily lives. I don't see how he got "scammed" by the dealership. They didn't make him buy the car. I'm sure all the terms are spelled out in the sales contract that I imagine he neglected to read. It's really saying something when a car dealer, who has significant pull with the banks, can't get you approved for a loan, even at that kind of a rate. The OP has no business buying a car right now, especially a new one. I suppose it's all about keeping up appearances anymore, which is probably what got him into the unmanageable debt that resulted in such a poor credit score. While I think the dealership did take advantage of him, I don't think they scammed him. They are not supposed to be baby sitters. They sell a product. If someone comes in wishing to buy that product, they do everything in their power to make sure that happens. And seriously, 1300 miles in two weeks? The dealer should and will come after you for some sort of "damages" for the excessive use. And really, they can still sell the car as "new" because it has never been titled, they will just have to take a hit on the price because of the mileage. I imagine the thoughts going through the OP's head at the dealer went something like this "Hmm, my credit is terrible, there's not way I can get approved or afford this car. What? You can get me approved for a loan? Ha, what suckers. Sure, I'll take it then. The GAP and warranty will help you get me that loan? Sure, I'll take those too. You guys really are suckers, loaning money to me. I sure pulled a fast one on you."

Calling it a deposit makes it sound like something they conceivably keep ater some arguing. (Or stonewalling.)

Is it a down payment, or a deposit?

@InThrees:
It's a deposit until the financing is approved, then it is converted to a down-payment (I'm guessing here). The "deposit" is used in case exactly this happens. Now when he takes back the car, they can keep some of that money to cover his excessive use.

Cars suck, soon all will agree. Repeat- "cars suck......."

@gingerCE

I think that Cap One's auto finance (or maybe just personal loan in general) product is actually called Blank Check. We used this for our car financing (through Costco). They basically approve you for $X and you can write the check for any amount up to that (with some minimum). It's actually pretty nice, and (assuming you've done your research, comparison shopped, etc) puts you in a great position when you start negotiating price (because they can't fall back on the "how's this sound for a monthly payment" schtick).

@Freedomboy:
I agree. I sold my car and my wifes 8 months ago when we moved to Chicago. It's almost like a weight has been lifted off my shoulders. Now when I drive I find it to be terribly inconvenient. No gas, no insurance, no repairs, no payments. Anymore I prefer to be driven, be it in a taxi, a bus, or a train. Cars are for suckers.

Take the car back. Cancel the contract. Get your money back. You made the offer in good faith and drive the car off in full expectation you OWNED it. If they didn't feel they could finance you, they wouldn't have let you drive it off the lot.

I'd bet they will suddenly manage to find a willing bank.

Why did you buy a new car when you can obviously not afford one?

You should buy a POS car and take the money you save and "pay back your friends" as you mentioned doing and then work to improve your credit score. I don't know my exact score, but I can get an auto loan from my credit union for 5.99%. By my calculations, you would pay $7522.60 in interest over 5 years, and I would pay $3289.60.

Dude, go get a USED certified car for less. Or go to KIA and get a new car for under $10k and get the 10 year/100k warranty...but you will need that warranty with Kia.

or buy a junker and build your credit up.

Before entering a dealership to buy or lease a car:

1. Know all about your own credit score.
2. Get internet average pricing (Edmunds TrueMarketValue is pretty good).
3. Secure your own financing or make sure you qualify for any manufacturer's incentive financing deals (See #1).
4. Avoid dealer extended warrantees and watch out for bogus "fees" they might have other than the "Ad fee" which is usually OK.
5. Make sure you can understand and reproduce ALL finance and payment calculations on your own and the papers you sign agree with your own calcs.

Skip any of these things and you can easily get taken.

Run screaming from this "deal" no matter what. Most of these sub-prime car loans through the dealers come with a fine print clause where you can't pay down or pay off the loan without taking a huge hit on your credit that shows as a "settlement". So paying off early looks like you damn near lost the vehicle on your credit.

Take the car back, go to a bank or credit union and get a reasonable loan for something used that you can afford.

Let's come back to the Capital One blank-check. Once upon a time, there was a company called People First, and they'd send you a blank check valid up to a certain amount, with a contractual, guaranteed rate. Capital One bought them out. Is that what you're talking about? If so, what's the rate???

I used People First for my current car (now paid off), and the experience was friendly all the way. I even needed extra customer service for permission to get paperwork to go to Mexico. First class all the way, and better than the rates I could get through my employer (an actual Big 3 auto manufacturer). Even though I wouldn't want a Capital One credit card (hear lots of bad stories), their servicing of the loan was exemplary.

If you've got a People First (err, Capital One) blank check, and a rate you're happy with, why didn't you use it in the first place? Use it now, if it makes sense financially.

I feel complelled to post on this.

First off, I work for a Toyota / Scion dealer and I know Scion has very strict rules regarding how customers are handled.

Scion is a no pressure buy, so if they did in any way put the screws to him he needs to contact Scion RIGHT NOW. They will act, guaranteed.

Scion's are also pure priced, meaning we cannot discount the cars whatsoever. So it is not in this dealers best intrests to take this car back. Unfortunately there's no guarantees in credit and considering the car sells for $17,270.00 fairly well loaded up, this guy obviously has some issues with knowing when to stop if he got to 20k. Probablyl couldn't live without Navigation or some other useless options.

Shit my score is in the same range and Toyota Financial Services got me in aorund 7% on a certified used. So for all we know even though his score seemed okay, he could have had some late/slow pays reported recently while they were funding the loan or who knows.

The thing with GAP is, if you live in an area with bad accident rates or have so so credit then you need to get it. The ammount you pay (when you're smart about it) well makes up for the peace of mind in not paying out the ass when some drunk kid creams you.

If you have the Cap One financing, I don't know why you're even attempting to finance at 13% unless Cap One is hitting you for more.

Take in the Cap One paperwork and drop the extended warranty.

Then start getting smart and quit shopping outside your means.

@Ecoaster:
Most of what you suggested doesn't apply to the Scion brand.

Although he should have been smarter about the financing, I'll give you that.

Let me add -- without being a shill but trying to be enthusiastic about my company's products -- if you'd be interested in a step up, I can try to arrange friends/family price on a larger, trendy, well-received car. It's an American brand, but has excellent reviews. You'd have to contact me privately, though, and still bring your Capital One check (or hope they don't try to screw you at the dealer). If you check my entire comment history you'll see I've never shilled before.

And also have no residual value on resale... Sorry but I see Amercian car buyers get hosed daily on owing well more than their domestic is worth within a very short time.

I have lease and bought a total of 5 vehicles with sub 650 credit. They are trying to screw you or are extremely incompetent. Also it sounds like you are going to put a ton of miles on your car... but if you can actually afford $450/mo that puts you in a lot more car leased. Im leasing a 2007 bmw for that payment and its a $44k car. Im not gaining any equity, but im not going to be upside down when the lease is up and Im driving a sweet car that is a tax right off. But still, you can get funding. I dont think 13% is soo bad if you are really attached to the reliability of having a new car and are using it to buy your credit up. If you accept a higher interest loan like that, though, be on time with every payment so you are getting something out of it, IE better credit. Just keep in mind, also, that at that high of a rate you will likely always be upside down in the car.

Oh also, I have gap coverage as part of my auto policy and it adds like $10/mo.

PS-running the car in reverse won't roll back the miles Ferris Bueller lied, I already attempted that with my dad's car

@pdxgrease:
Wow, that's some really rational and reliable advice. Sure, 13% isn't a bad interest rate, it's a great deal. And if you average 2,600 miles per month, hell, lease a car. They're just kidding about the mileage limitations. Plus, if you can't come up with the $2500-3000 inception fee, just charge it. Or even better, borrow it from from a friend. Additionally, insurance on a car that expensive is WAY cheaper than insurance on a $5-6k car.

dear me, you obviously can't afford this car if you can't afford more than $500 down!
take it back, let them keep the deposit and get the fuck out of there before they want more money from you. $500 for two weeks and 1300 miles is a reasonable rental rate.

As everyone else has said, take back the car. Hang on too long you'll end up with a (voluntary) repossession on your credit record. Not something you need now.

Go pound the pavement looking for a decent rate at a lending institution. Realize that the more inquiries you have on your credit report, the more it lowers your score. Read all contracts and do your homework before signing anything or taking possession of anything.

[www.edmunds.com]

Buy a used $5000 car, and make sure to make payments on that sucker on time every time. Pick something really basic and as new as you can find. That way it will cost you less to maintain it. No it won't be sexy, and you might even have to wind the windows yourself, but in two years everything will be roses. Then go buy a new car.

Without this much self control, you are going to be one of those scmucks with perpetual bad credit who always wail about being a "good person."

i'm pretty sure the dealer didn't drag him in off the street and force him to buy this car. he went to the dealer oh his own, and made bad choices. y'all make it sound like he got raped, but it from what i read, he took down his own knickers.

shopping outside his means? sure, but like someone above me pointed out, the salesman did what he got paid to do. it's stupid to make a what amounts to the largest business decision of your life based on emotions. if you aren't logical and resonable, you'll get this treatment every time.

Try an early 2000's vw jetta/golf. they depreciate like hell, but hey, most of that major depreciation is over and done with. You can get one with leather interior and good build quality that you seem to feel that you "need" if you're spending that much on a new car in your situation, and your's doesn't even have leather.
It's hard to believe that someone who reads this site failed to do the research and heed so much of the other basic financial advice that gets dished out here.

Also, who in their right mind would purchase a loan with a rate as high as 13%? I don't care what your credit rating is, that is a terrible rate. And, you can lease an A4, 328, C300, or a Mazda 3 for much less than $460 per month...who would pay that much for a Scion?

Used does not have to = beater actually. Take what you learned about this experience (be more careful, do more research) and apply it to a quality used car. If you're looking, and can afford something new-er there are always tons of just-off-lease cars that might fit the bill.

But used is the best way to buy, preferably after the first two years which is the worst for depreciation anyway.

the only reason he would pay that much for a Scion is because he loaded it with luxury items or options.

An automatic transmission, power everything, side, curtian, knee, and front airbags, keyless entry and cruise, iPod Pioneer sound system, ect for $17,220.00

So to get to that extra 3k more he would have had to load it up. Which is silly. If you really need navigation, wait til you can afford it. Scion navigation units can be installed at anytime.

Scions are Toyota-built cars. Why on earth would you get an extended warranty? The thing will make it to at least 100,000 miles before anything breaks.

@oneswellfoop:
I'm a huge VW/Audi fan. I drove an A4 for awhile. Loved it. The only caveat with those cars is maintenance costs. If I couldn't do the work on my own, I would have literally gone broke with maintenance costs. Another piece of research that a prospective buyer should do. Maintaining a used, european semi-sport sedan can really eat into the wallet. Parts are crazy expensive, and labor is insane.