Not sure if this is really the right place but I don't know where else this question would go. I recently purchased (financed) a pre-owned 2019 Mazda CX5 with 22k miles, about a week ago. This was my first time buying a car from a dealership rather than a friend or a family member. Despite my best intentions and all my research, I think I ended up getting suckered into buying way more protection from my car than I really need. I was offered a powertrain/bumper to bumper 7-yr contract with a company called Portfolio Protection (very mixed reviews) for $2,400, a 5-yr prepaid maintenance program for $1,800, and a $400 surface protection (dents/dings) package for a total of $4,600 in protection. In exchange, I received a lower APR from 3.39% down to $2.69%. The guy was nice enough but talked in circles and I got lost in the math, but I finally agreed. When I got home I read the fine print and crunched the numbers, and calculated that I would actually be charged pretty much the total cost of the warranty and maintenance plans over the course of the 5 year loan so the lower APR doesn't make a difference. I called the local Mazda dealer and he said he would just get rid of all this stuff since they're pretty reliable cars and I would have to get a lot of service to just break even.
I emailed him three times this week to cancel the programs and received no response, and finally yesterday I emailed the general manager of the dealership and copied three other managers. Today he called me (guess I got someone's attention and they told him to take care of this) and he tried to walk me through how supposedly the bank picks up some of the cost and I'm actually only paying $2,200 for the programs, not $4,600. It didn't make sense, but the way he explained it is that my original payment was going to be $460, but is now $497 ($37*60 = $2,220). I asked him to break down how my payment was going to be $460, since my math gives me a monthly payment of $422. He said he couldn't do it and didn't have the numbers in front of him, but will call me tomorrow so we can go through it. I'm more likely to keep all this stuff if it's actually $2,220 but I am hoping someone may be able to shed insight into this stuff since I'm not savvy at all about car buying and this is my first loan. I broke down the math below. Sorry for the long elaborate post but any help would be greatly appreciated.
Total with Protection Plans - with Fees, Tax: $30,384.63
Minus $2,500 Down Payment: $27,884.63
Interest Charges (2.69%): $1,981.57
Total Cost of Loan (with interest): $29,866.20
Monthly Payment: $497
Total WITHOUT Protection Plans - with Fees, Tax: $25,784.63
Minus $2,500 Down Payment: $23,284.63
Interest Charges (3.39%): $2,062.37
Total Cost of Loan (with interest): $25,347
Monthly Payment: $422
I emailed him three times this week to cancel the programs and received no response, and finally yesterday I emailed the general manager of the dealership and copied three other managers. Today he called me (guess I got someone's attention and they told him to take care of this) and he tried to walk me through how supposedly the bank picks up some of the cost and I'm actually only paying $2,200 for the programs, not $4,600. It didn't make sense, but the way he explained it is that my original payment was going to be $460, but is now $497 ($37*60 = $2,220). I asked him to break down how my payment was going to be $460, since my math gives me a monthly payment of $422. He said he couldn't do it and didn't have the numbers in front of him, but will call me tomorrow so we can go through it. I'm more likely to keep all this stuff if it's actually $2,220 but I am hoping someone may be able to shed insight into this stuff since I'm not savvy at all about car buying and this is my first loan. I broke down the math below. Sorry for the long elaborate post but any help would be greatly appreciated.
Total with Protection Plans - with Fees, Tax: $30,384.63
Minus $2,500 Down Payment: $27,884.63
Interest Charges (2.69%): $1,981.57
Total Cost of Loan (with interest): $29,866.20
Monthly Payment: $497
Total WITHOUT Protection Plans - with Fees, Tax: $25,784.63
Minus $2,500 Down Payment: $23,284.63
Interest Charges (3.39%): $2,062.37
Total Cost of Loan (with interest): $25,347
Monthly Payment: $422
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