Dealer Changed the interest after the contract was signed

[Justinbtf]

Ok to start I dont know alot about car contracts but from what im hearing they shouldnt be able to do this. I bought a 2003 malibu march 31st at arlington kia in palatine illinois, at which I went through all the fun hassle of buying the car, Signing the contract etc. I paid 2500 down and had a 500 dollar trade in. The contract I signed stated that my interest rate is 24.95 percent, I know alot. So I get a call three weeks later them stating I need to come in and resign something. So I resigned the contract because they screwed up on the date of the first payment. the next day I get another phone call from their finance deparment stating that they made a mistake on the interest rate and it show be higher and that I need to come in and resign another contract. The thing is I already have had the car for 3 weeks, everyones telling me that the orignal contract is binding and that I dont have to resign another one. But when I refused they said that their is something on the contract called a riders agreement and that if I dont sign the new one with the new interest rate they are going to take back the car. So im kind of in a predicament, not knowing what they can actually do. Can anyone help?

 

[dallas702]

First, read your contract.

Second, of course this sounds fishy...the idea of paying 25% interest when normal rates are about 5% sounds usurious and incredibly stupid for a dealership. You should have told them to go jump on the original rate (your credit couldn't be that bad), but changing to an even higher rate after you signed a contract? BS!

Contact your AG's office. They will have a consumer affairs division for just this problem. Them contact the REGIONAL Kia rep. These are the people who give the auto biz a bad name.

 

[jpritchett81]

It's very possible to have an interest rate that high if you bad/no credit

 

[brownie]

Hmmmmmmm

Was this one of those Buy Here/Pay Here car dealers???

One that has sings that says "Guaranteed Credit"?????