When I was working at Carmax, we only dealt with Simple Interest Loans, so often times we'd warn people that they may get a loan with a prepayment penalty at a traditional dealership. Most of my customers were aware of that and even asked about that when we started the financing process. Banks do not like losing money and a lot of these "low interest" loans WILL charge a penalty for paying the loan off early. Fair Credit demands that all this stuff is spelled out in the contract for a reason, and for good reason you should read the contract BEFORE you sign it.

 

My point exactly sir. It was NOT pointed out or discussed with me at all. I admit my stupidity for not reading everything yet I expected more integrity from the finance manager to reveal that information to me prior to the signing. I would not knowingly agree to such terms with anyone to be penalized for paying off a loan.

 

The bank issued a legal contract. The dealer failed to disclose the information to me. I failed on my part by not reading the contract. I could not contest the bank because I signed their contract but I could contest the dealer for not disclosing the full information. Thus a settlement was reached. I think it's all about my stupidity as a consumer for not reading the paper I signed and trusting the integrity of the dealer. So, I'm stupid and I have no other valid options to provide.

 

congrats on getting that 2% back from the dealer, I doubt most people would be that lucky!

 

I don't think you're stupid, nor do I think the finance manager was intentionally trying to screw you. I think the original dealer probably realized that it was a mutual mistake and attempted to cure that mistake with an accord and satisfaction that was amenable to both parties. No big deal, and the important thing is that you got your money back. I betcha next time you'll read the contract a little more carefully, though. It amazed me how many people would just breeze through the most important part of purchasing the vehicle for no good reason.

 

Lesson learned. Get pre-approval and a blank check. Negotiate a cash deal and forget it.