Your friend shouldn't be financing a car if the interest rate is 21%, that's ridiculous. They should use their 8 grand or so that they have now to get a used car from a third party private seller. Hell they could buy a new Toyota Echo for less than 10 grand. The extra two grand now means not having to spend another 8 grand later.

 

Yeah, it would have saved him money to buy the damn thing on a credit card with that interest rate.

 

Everything is right there on the contract, it tells you how much your going to pay in interest and how much you paid for the car... Maybe your friend was too excited to check everything out?

 

My friend did that a few years back with a BMW.. You know they send you free offers for 0% for the first year or 2 years well he would just transfer his balance over to a new card when it was about to charge interest.

 

My dad buys all his cars on credit to get the reward points. I never thought about that but it seems like it'd work. I'd be worried about the fine print and them pulling some BS.

 

coulda sworn california law allows 30 days to return/exchange any item and cancel any contract... could be wrong.. check w/ a lawyer :banana:

 

I put in $9000 @ 21%. The payments come to $243/month on a 60 month loan.
$243 x 60 = $14580.

 

Hmm... Last time I was in a dealership, they had posters everywhere stating that California has no cool-off period - all sales are final. But it is worth checking into for something like this.

 

No, I believe that is not true. Not unless it is explicity in your contract.

And, if it were, the states that have the "buyers remorse clause" they are only 24-72 hours.

 

The 30 day thing is true for mortgages like a house.

There is no 'change you mind' period in CA at all.

 

dude, @ 21% interest, I'd wonder about your friend's credit rating... that sucks that he went ahead and bought it anyways

 

Never thought about it like that, buy it with a credit card get the points then get a car loan though your bank or CU...

 

Thanks for all the insight people.........I will try to find out a little more about the exact interest rate, what other "stuff" they added in, and what-not.

The kid is like 20 years old, car just broke down, and jumped right into this.........Youngsters sometimes do nutty things like this, i guess! I remember doing alot of not-so-thought-through things when I was a young 20year old.

 

You can't get a car loan to pay off your credit card though, so this won't work.

Nice thought though.

 

the only catch to that would be at that point the car is considered used and is always associated with higher rates.