Goette Hyundai Bain and Switch Co-signer becoming payer and payer becoming co-signer Sarasota Florida
I was desperately in need of a car and have a very poor credit rating
due to foreclosure on a home. I had heard that Hyundai had a good
program for buying a new car. My 1997 Mazda lost its A/C compressor and
would have only lasted 6 more months with a new compressor. My job is
75 miles south of the city I call "home." I needed to get back to work
on Monday, and the Mazda breakdown was on Friday. I went to Goettel
Motors to look into this program. The new Hyundai Accent (2010) was
base-priced at $14, 997. With all the state, license, and "Assurance
Program" fees plus $1000 discount for the "assurance deal" at this
time, the final price came to $18, 509.00. The interest for the loan
from CitiFinancial Auto is 10.9%, surely better than some people are
paying. However, I still could not get a loan without a co-signer.
My friend agreed to co-sign. We filled out the paper work, each
under the impression that I, the buyer and payer of the account, is the
primary owner. By now the total amount, with interest over a 6-year
period (72 months), has brought the price to $26.000 +. Also, upon
receiving information from CitiFinancial Auto, I am no longer the
primary holder, but the co-signer. My friend as AAA credit score. Now,
my friend is paying on a car at a heightened percentage on the credit
score (mine) instead for paying at an interest rate in keeping with the
AAA credit rating. I will never see any improved credit score on my
behalf, even though I am paying for this car. Buyer beware! Don't get
into this program. It does take affect until the first two months
payments have been made. The one advantage and only advantage is that
the Assurance program allows you to lose you job, not from being fired,
but at no fault of your own. At this point, you may drive the car for 3
more months. If you do not find another job, Hyundai "claims" that you
can return the car, being absolved of payment. From other complaints,
it seems that Hyundai does not honor its agreements. Buyer beware!
Also, many dealers, including Chevrolet, practice this approach to
seeking loans for car-ownership. I am seeking legal help with this
matter
2 Updates & Rebuttals
Amazed
Houston,Texas,
United States of America
Pretty common
#3Consumer Comment
Tue, April 06, 2010
That is SOP for financing, they will put the person with the best credit as the primary buyer. That being said they should have pointed this out to you when you signed the deal. Go back and look at the finance papers and see who listed as the primary buyer.
Robert
Irvine,California,
U.S.A.
No RipOff..
#3Consumer Comment
Tue, April 06, 2010
You just don't understand how car loans work.
You have a co-signer. That means that you are BOTH equally responsible for the loan. When your friend co-signed they made a legal agreement that states that they would take over your payments if you fail to. There technically is not a "primary" and "co-signer", you are both "co-borrowers".
If you pay it on-time it is a positive item on BOTH your credit reports. If you pay it late it is a negative item on BOTH your credit reports. If one person does not pay they will go after the other person. This generally means that if you do get to the point where it is reposessed and they go after you in court for the balance, they will go after the person with the most money in court. This is generally the person who co-signed(your friend).
So as fair warning. If you value your friendship with that person you better be very sure to NEVER become late. Because in order for your friend to save their credit, they will need to pay on your car if you don't. If they don't their AAA Credit will be no longer. By the way with a Foreclosure on your report be very thankful that you were able to get a 10.9% interest rate.
The only thing you should be seeking is to attempt to refinance the loan where you no longer put your friend in this situation.