Dear Tony:
Thank you so very much for helping and arming me with your knowledge so that I could have more confidence when dealing with Toyota.
It is very rare in this day and age that we meet people who are willing to help as you have helped me and everyone else out there.
Only if you are interested, I thought I would give you an update. The dealer said they would cancel the pre-paid maintenance and the window etching insurance. In essence, we paid for the labor for the etching (about $60) and what they call the "acquisition fee." Apparantly, this is their $695 fee for financing through the dealer. So, I would have to guess that even if a dealer were to offer 0% financing, there would still be the "acquisition fee."
Even though I bet I could have argued that if the dealer was going to rip up the 1st contract and redo another contract, then he can simply just cancel the original contract and we would pay cash. I decided against it however, because it was my father's choice to finance with the dealer (although this acquisition fee" is new news and was not in the contract).
It would be unfair for the dealer to work with us and we take away his commission simply because we had more time to think things through.
Thank you again for all your knowledge and help. You are truly a highly valuable asset to consumers, and I sent your site to everyone I know.
With much respect,
Leila
My Final Comments:
Hi Leila,
Thank you once again for your kind and generous words. I am very appreciative.
I just want to make sure you understand that this so-called "acquisition fee" is a total rip-off! When a dealer arranges financing through a bank they get paid a commission called "dealer reserve" from the bank. Depending on the amount of the loan and the interest rate this "dealer reserve" could be as much as $1,500 and more!
When I was working as a Financing Manager I have had deals with "dealer reserve " in excess of $2,000! . . . and that wasn't an isolated case either!
Even when they arrange a 0% loan they still get a fee, albeit not a large one, but nevertheless they still earn something. A dealer charging an "acquisition fee" of this type is very likely using an illegal ploy to bilk it's customers.
This is the kind of stuff state Attorneys General like to dig their teeth into!
Once again, thank you for your kind comments.
All my very best to you...
Tony Iorio
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