HSBC Watch News Release Forum Index
Forum Name: - Opinions
Topic Title: Dealer Price $6200 Really $12,000
Mon Feb 07, 2005 11:38 pm
In september of 2004, purchased a motorcycle which was financed through HSBC retail services. When i purchased the motorcycle i was quoted a price of 6200.00 dollars after the bike, taxes, and intrest. However when i got my first bill from HSBC the price on the bill was 12000.00 dollars.
When i called HSBC to inquire about the bill i was told that i owed them 12000.00 and even if i paid the bike off all at one time i would only save about twenty percent of 12000.00 dollars. I am only 21 years old, i am in college, and work full time to pay for my rent, car, motorcylce, and school. I feel that I was lied to from HSBC, and they are trying to take advantage of me. I mean after all, what other choice do i have but to pay, or get it repoed and ruin my credit. I appreciate you listening to my complaint, and hope it helps you.
Tue Feb 08, 2005 1:25 pm
1. Did you get a sales contract stating the purchase price of the
motorcycle?
2. Were the terms of the financing disclosed to you on your credit
application and approval?
3. Interest rate, cost of financing, interest calculation method, payment
amount, term or payoff date?
4. What amount was sales tax based and what value was reported to your state for taxes and licensing?
You should still have the paperwork from the purchase, compare all of it
carefully with the "bill" you received from HSBC, if there is a discrepancy, or the information for my question 3 above, check for a local advocacy office in your city, (does your college have a legal office?), report it to the BBB, your state attorney general and banking regulators.
If the interest was pre-computed using rule of 78, then that may be true,
however are you paying interest on $12,000 ? Just because they say you owe $12,000, doesn't make it true. If the paperwork had mistakes, or if the disclosures not complete you may be entitled to an adjustment or correction.
JK, they, the dealer that sold you the motorcycle and HSBC are counting
on your age and experience in this matter. Often due to the excitement of a major purchase and the buyers inexperience, many of the questions don't get asked or answered. Too often, it is a case of don't ask, don't tell. But you, the buyer loses in this situation.
From my own experience, I bought a recreational vehicle a few years ago. When I went to sign the final documents, the rate and term did not match what the sales person had quoted and we had calculated. I hammered them, on the spot. The interest rate could not be adjusted because of lender terms, but the term and sales price were adjusted to meet the payment and term used in my calculations. I flat out told them I was not going to play their game and would not make the purchase under the terms they had written up for me to sign. They offered the adjustment to the price to meet all the calculations given by the sales staff. Only then would I make the purchase.
But that is the difference between me being 45 years old, and my reaction to what I perceived as deception. There are always other dealerships to shop from and I knew it was an impulse item that I could well live without.
To me, it is amazing that "they" would provide financing in a manner that
would not be fully disclosed and calculated prior to delivery of the
motorcycle. When the transaction is completed, you should know the amount financed, the term (or length) of the finance period, the amount of your payment, the way interest is calculated (simple, compound, rule of 78), and if there is a prepayment penalty.
Best wishes, Drew
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