Very Disappointing Financing Experience
I'm extremely disappointed with my experience at Watsonville GMC. I came in seriously interested in purchasing a 2027 GMC Terrain and was ready to put $5,000 down.
The vehicle selling price they showed me was $32,535, which I was happy with. The first payment worksheet I received showed 6.99% APR for 72 months. After submitting the credit application with a co-buyer who has strong credit, the financing offer I received was 13.34% APR for 72 months.
With my $5,000 down payment, the amount financed was about $31,538.75, but the finance charge alone was $14,706.85, with payments of $642.30 per month for 72 months. That would mean more than $46,000 in loan payments, plus my $5,000 down payment, on a vehicle with a selling price of $32,535.
I understand that interest rates depend on credit history and lender approval, but I was extremely uncomfortable with how dramatically the financing changed. When I questioned the rate, I was told they did not receive other approvals because of my credit history. I specifically asked about using my co-buyer's stronger credit or having her qualify independently because I was not willing to accept a 13.34% APR.
This experience left me feeling pressured and very disappointed. A low advertised vehicle price does not necessarily mean you are getting a good overall deal once financing is included.
My advice to future customers: do not focus only on the vehicle price or monthly payment. Before signing anything, carefully check the APR, amount financed, finance charge, total of payments, down payment, and any warranties or add-ons. Get everything in writing and compare financing with your own bank or credit union.
I ultimately was not comfortable accepting these financing terms. I hope the dealership improves the transparency and customer experience around financing because buying a vehicle should not leave a customer feeling this frustrated and disappointed. read more