Ok, we are trying to do the deal on our 2011 Toyota Camry and the dealership is telling us we must do the deal the way it is structured so that it is approved. The deal is calling for LoJack ($625) and for Life Insurance coverage for ($983). That is complete BS in my opinion yet they are saying Toyota Financial is requiring it since I have $3000 negative equity. Is this true or more car salesman BS?

 

Is this $3K neg equity in the trade in? If so, why can't the dealer roll the difference into the new car payments?

Who is going to sell this LoJack and life insurance to you? The dealer or are they asking you to find this on your own. If the dealer, there is a very good profit motive in selling you this.

Selling extras like life insurance is a great way to make profits. Trying to force someone to buy life insurance in this situation may be against the law in your state, but would need to check.

LoJack can be required for very high value cars by the INSURANCE company. In your case, if you have insurance (it will be required) the insurance company will pay off the dealer, thus no need for LoJack.

If you do want life insurance, buy it on your own as you can get a much lower price and better coverage.

Dealers push this insurance stating if you die your family will be stuck with the payments. If your married, depending on your states debt laws your wife may be on the hook for the payments (or any other cosigners on the loan). If you have assets you want to transfer to someone via a will, the car payments will need to be taken into account.

However, if your single with only a few bucks, the finance company can not go after your family, kids, parents, etc for the car payments. Their out of luck and limited to taking the car back if the payments are not met.

It appears they are trying to make things very easy for them, LoJack to find the car, life insurance with them as the beneficiary and if selling these products to you, make a good profit.

Things may compound if you don't have good credit, or any other issues the dealer can try to use a leverage to motivate you to buy extras.

I would hold off on this deal until taking to a lawyer or a consumer agency. In some states you can buy 20 minutes of legal time for $30. Then armed with the facts go back to this dealer and state you position. If they still insist, shop other dealers.

Don't get to excited over buying any car! This can lead to making hasty decisions. There are always other car deals out there, this is a still a bad economy and dealers need to sell cars to make money. If the deal smells fishy, walk away.

 

The dealer already rolled the 3k neg equity into the deal.

They (salesman) are stating Toyota Financial is requiring us to purchase their 3rd party life insurance and LoJack for the car. We already have life insurance and we have fantastic auto insurance thru state farm and need neither of these items. I find it hard to believe Toyota Financial is requiring this- I want to know b/c I want to call Toyota Financial and file a complaint b/c I feel they are lying to us.

 

I can't state for sure but think they are just pressing for more profits.

If the dealer states Toyota finance requires this, ask to speak to someone at Toyota Corp finance to confirm it, get a phone number and name.

Ask them to show you the written requirements from Toyota Corp requiring this.

For specific Toyota finance experiences might ask at the Toyotanation website, more members many whom financed their cars via Toyota.

Check with your states Attorney Generals office to find out if the dealer can force you to buy life insurance to complete the deal. This may be illegal in your state.

Might call your State Farm agent, they must deal a lot with car finance issues via claims on cars they insure.

 

We are looking at buying a new car soon. Anyone else had this problem? I find it hard to believe.


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