Credit Management Archive

A forum for anonymous discussion of credit, debt, and finance. No registration, no frills, just good advice.

RoadLoans Acquisition Costs

RoadLoans Acquisition Costs

Discussion open, post a reply
Posted in automotive-financing on Mar 08, 11 at 12:05PM
Does anyone happen to know how much the RoadLoans "acquisition fee" is (the amount they charge the dealer to finance the purchase which in turn the dealer typically passes on to the buyer)? I've heard various amounts like $995, $2000, etc. I know that most captive financing companies (like GMAC, NMAC) also appear to charge an acquisition fee in the range of around $500 (?). It seems that in the 2 cases the dealer handles it a bit differently. In the first case, they might request you pay the whole $2,000 (or whatever it is) on top of the quoted price or maybe they build it into the quote. In the second case, there's usually no add-ons to the quote (the acquisition cost was built in from the start or perhaps they're also getting points on the back end - a percentage of the note's interest payments remitted back to the dealer - to offset this fee). I'm curious also if they require an extended warranty as well. I was approved a while ago by Drive I believe and it turned out the terms required purchasing a $2,000 warranty plus the acquisition fee. It seems like the high acquisition fee is a way for the lender to skirt past each state's (which could be as high as 30%). Curious if anyone has any thoughts on using RoadLoans. Thanks!
Welcome to CreditBoards! We hope that you find what you're looking for here. Some helpful tips: Again, welcome to the CreditBoards family! : LKH, Pam, radi8, breeze : CargoJon, Chris in OK, cotterpin, CramItCCCAs, Fallon, MarvBear, mpc578, pryan67, psp, Stryker, TrevorHere : brazen, Brian B The Loan Professor, cedski, DallasLoanGuy, hoapres, ICANHASMUNY?, Lighthouse84, Linx04, Neen, TeeSharice : LKH, Pam, radi8, breeze : CargoJon, Chris in OK, cotterpin, CramItCCCAs, Fallon, MarvBear, mpc578, pryan67, psp, Stryker, TrevorHere : brazen, Brian B The Loan Professor, cedski, DallasLoanGuy, hoapres, ICANHASMUNY?, Lighthouse84, Linx04, Neen, TeeSharice
 
---
 
It is not legal to require purchase of a warranty / service contract as a condition of a car loan. Lenders can only require the buyer to carry standard collision and comprehensive car insurance from the carrier of their choice. A place like Drive, which I think is still actually a thinly veiled BHPH operation, may be getting away with it by requiring the warranty as part of any deal. Thus technically it is part of the price of the car. A representation that it is required by "the lender" (actually another branch of the same company) is not legal though. When the buyer has good credit there are plenty of lenders to choose from that don't charge an acquisition fee. In fact the reverse situation can occur, the APR can be "marked up" for additional profit to the dealer. Because the buyer will be making higher payments than he needs to (due to being well-qualified for a lower APR than is on the contract) the dealer receives more than face value of the loan upfront.
 
---
 
If you can tell me the specifics of your approval with RoadLoans then I can very closely approximate how much the fee THEY are charging the dealer to accept the check.
 
---
 
we got approved for a road loan. we went to one of there listed dealers and purchased a car. they said they were familar with santander because they use them.we signed all papers they gave us and drove home with the car. two days later the dealer called us and said road loans wants a 2500.00 fee and if we dont pay them they want the car back. is this legal??? they havent submited the loan to road loans/witch was pre approved because of this fee. do we have to return the car or pay tere fee. i really need to know fast
 
---
 
We just got approved from roadloans also. The terms were 16% on $21,737 for 72 months with $600 down, yes I have bad credit. We negotiated a price with the dealer, but when we tried to close the deal the dealer did not honor the price. They tried to pass the $2300 dealer fee on to me. I told them to go to hell. I called Roadloans to tell them of my experience and they said the dealer is not supposed to disclose the fee to the customer and that the dealer could not roll the fee into the loan. I asked the customer service rep how I was supposed to only put $600 down and cover their dealer fee without the fee being rolled into the loan. She could not answer that, jut told me to try another dealership. Obviously if a dealer is going to do the deal they are going to have to roll the fee into the loan (by upping the price of the vehicle.) I asked for a supervisor, maybe they could better explain it to me. I was transferred to a voicemail, currently waiting for the return call.
 
---
 
I JUST went thru this as well. They told me they have to add 2,990 to the asking price due to this fee roadloans is chargingthem in order to do the deal. I walled out of dealership.
reply to post
Your reponse:

Your email (optional, if you want to receive notifications of replies):

 

Search