Full Cash Purchase with Retail Installment Sale Contract Used by Dealer

crazy_carl

My wife and I just bought a new SUV and paid the full out the door price with a personal check - I wanted nothing to do with financing or any of the hassle associated. When closing on the paperwork though, the dealer wrote the agreement up using a Retail Installment Sale Contract with what looks on paper as if we financed the entire price. A very high interest rate was recorded at 9.99% without any downpayment noted in section 6A - 6G. The amount financed in effect on paper is the full amount. Is this being done in order to ensure the check clears first? And if so, why would the check amount not be noted somewhere in section 6? I'm wondering if I should put a hold the check altogether at this point. This was purchased from an established dealer, so what are they trying to do - get a kickback of some sort from a bank because it looks like a financed purchase and then a single full payment in month 1 of the 60 month terms? Either way, all of this just doesn't sit well with me and looking for some advice. Thank you very much.

kyfdx

crazy_carl said:

My wife and I just bought a new SUV and paid the full out the door price with a personal check - I wanted nothing to do with financing or any of the hassle associated. When closing on the paperwork though, the dealer wrote the agreement up using a Retail Installment Sale Contract with what looks on paper as if we financed the entire price. A very high interest rate was recorded at 9.99% without any downpayment noted in section 6A - 6G. The amount financed in effect on paper is the full amount. Is this being done in order to ensure the check clears first? And if so, why would the check amount not be noted somewhere in section 6? I'm wondering if I should put a hold the check altogether at this point. This was purchased from an established dealer, so what are they trying to do - get a kickback of some sort from a bank because it looks like a financed purchase and then a single full payment in month 1 of the 60 month terms? Either way, all of this just doesn't sit well with me and looking for some advice. Thank you very much.

Yes.. .it's to protect them, in case your check bounces.