Consumer complaint received 2023-03-16
Company: CREDIT ACCEPTANCE CORPORATION
State: NY
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Getting a loan or lease
Sub-issue: Confusing or misleading advertising or marketing

Complaint:
I was a first time interested buyer of a car at a dealership called XXXX XXXX XXXX located at XXXX XXXX XXXX XXXX XXXX NY XXXX. First red flag was the place of business never picked up any of my phone calls during several days of calling. I was interested in a car I saw posted online. After leaving a voicemail, I was then reached by someone who connected me to a person who worked at the location named " XXXX XXXX '' who eventually made an appointment for me to come into the dealership to view the car I wanted. On XX/XX/XXXX he proceeded to show me the car that was $ XXXX. As it was my first vehicle, I believed it was way over my budget. He showed me a different used XXXX white XXXX priced at $ XXXX. I accepted to purchase the vehicle but as they explained to me the cost of the vehicle will now have to be increased to $ XXXX due to my credit and age. I didn't understand why if my credit wasn't the best, why would the price increase. As a new buyer and a XXXX XXXX XXXX with little to no knowledge about how loans work, after some pressure tactics and convincing I accepted. I wanted to place a {$3000.00} down payment on the vehicle to lower my loan amount. As I will demonstrate on my original receipt that the company hand wrote clearly states the price of the vehicle $ XXXX and also stated down payment of $ XXXX and does not clearly deduct the $ XXXX from the original price. I was told to sign some documents for the loan. Failure on my part was to double check the loan documents as I was so excited to have my first car. After a few days discussing with my parents the ordeal I decided to review the loan documents and realized that not only did they not reduce my down payment from the original price but the loan was financed for more than $ XXXX. I tried calling the dealership many times with no answer. When I was finally able to get in contact with someone, they told me that I had also paid for a mandatory extended warranty which had raised my price. None of which was explained to me prior to signing. I had at that point realized I was deceived and a loan with " Credit Acceptance '' was taken for {$16000.00} with an interest rate of 15.99 %. I now had a payment of {$380.00} a month ( for 66 months ) in addition to a first time driver insurance cost of {$600.00} per month. This has been a monthly cost of {$980.00} for the past 9 months. This is nearly 40 % of my monthly income ( {$2500.00} ). I question this rationale, how did Credit Acceptance approved this car loan? when my monthly income was documented. Who misrepresented the cost of credit here? the dealership or loan company? XXXX XXXX also facilitated the contact with a rep from XXXX XXXX to honor me car insurance. Now after 9 months of struggling to make these payments, I have now decided it was time to report the nightmare this unjust, deceiving, unlawful and unscrupulous selling tactics this company has in place.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation