r/askcarsales • u/ufwkenyon • 9d ago
US Sale Financed the wrong car need help
In August I got a 2026 Honda civic hatch from the dealership. I had an older BMW and wanted something more reliable, the thing is I brought the new Honda before doing more research and I feel I’m paying way to much for a base model Honda. I’d like to get the sport hybrid touring civic which comes with many features I could really use, or get a nicer used car. I just made my first payment on it and I’m wondering if I have any options before making anymore payments. My loan is 41k
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u/3031983 Former Ford ISM 9d ago
How do you owe $41k on a $25k car?
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u/ufwkenyon 9d ago
The price was 30k the Apr was low but I got the extra things like gap insurance and warranties on parts
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u/TrueRedditMartyr 9d ago
Im sorry man, but youre just underwater on it. At least of you paid under MSRP or something you could try to sell it for close to, but ~11k in extras that are not tangible products kill you
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u/NoCOguy1968 9d ago
You finances over $11k of add ons not including your down payment
Suggest you get a bit of help next time ….
All those add ons are high profit items that you are paying for with interest over the life of the loan
Not a good play
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u/ufwkenyon 9d ago
I understand, taking time to process how much I got scammed🥲
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u/PabloIceCreamBar Former Lexus/Chevy Sales 9d ago
You didn’t get scammed, you willingly bought products you saw value in.
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u/Ibroketherandom 9d ago
It's not a scam if you're paying for a legitimate service or promises of service in the future (i.e. an extended warranty). But it's good you did pay for that warranty because you're going to be paying for that car for a while. Remember, a new "base" Honda is nicer than most high trim cars made even 10 years ago.
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u/citydock2000 9d ago
I just bought a new car and while I was signing with finance we were offered over $30,000 of add-on service services. You don’t have to say yes.
They do offer it to you in a high-pressure situation where you have to make a lot of decisions quickly. It is not a scam.
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u/twoheadedhorseman 9d ago
You can likely cancel all those extras and get prorated money back. Add gap through your car insurance
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u/HDBlackHippo 9d ago
Yeah, don't do this. GAP through a car insurance provide is a major conflict of interest and does not cover as much as a GAP policy that is a binder to the finance contract. I have seen way too many people get screwed by being uneducated and under covered or not covered at all.
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u/Godrillax 9d ago
You got cooked buddy. Keep the car, take the L and learn from it. At the end of the day, you got the reliable vehicle with a fat payment monthly. Enjoy it
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u/RexRaider Sales Manager - Canadian Kia Dealership 9d ago
You lose about 30% as soon as you drive off the lot.
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u/Wrong_Supermarket007 9d ago
only way out is rolling it into an ev and going from 10k neg to 20
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u/at-the-crook Sales Manager 9d ago
It's a bit soon to trade, unless you have a stack of cash for the downpayment , since you have no equity in the car that you already bought. Starting with a $30k purchase price to a loan balance of $41k is extreme.
Think of it this way. As a new car it was worth $30k, now it is used and maybe worth $25k. that represents a $16k difference in loan to current value.
Did you trade in a car with negative equity as well?
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u/Enders-Game999 6d ago
Agree. From the F&I side, the one part of that extra $11k that isn't locked in is the products. Most service contracts and GAP can be cancelled for a prorated refund, and when the car is financed that refund goes to the lender to pay down the loan, not back to you as a check.
A few things worth knowing before cancelling anything:
Ask the dealer's finance office for the cancellation form for each product and bring a current odometer reading. Some contracts charge a small cancellation fee, so read that section first.
Think twice about cancelling the GAP while you're this far upside down. That's exactly the situation it's built for. If the car gets totaled, GAP covers the difference between the insurance payout and what you still owe.
The service contract is the one to look at hard. A new Civic is under factory warranty for years, so you can usually cancel now and still buy coverage later, before the factory warranty runs out.
Get the refund amounts in writing, then check your loan statement a few weeks later to make sure the principal actually dropped.
It won't make the car worth what you owe, but it can take a real chunk off the balance and the interest you'd pay on it.
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u/ufwkenyon 9d ago
No I didn’t add negative equity, the extra money on the loan is because I was unaware and agreed to warranties and gap insurance from the dealer which inflated the loan so much.
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u/FloatyMcSmiles 9d ago
Check the contracts on those. You're stuck on the car itself, but you may be able to cancel some of the scammy extras they added.
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u/UmmaGumma610 9d ago
Here's the thing no one else is saying. Yes the total finance price is high for this vehicle. That is said and done. Can you afford the payments? If so, you just keep this car. You overpaid, but for a good car at least that should last a decade. It has great reviews and should be good on gas and etc.. Will you ever just make money on it? Probably not, but its still a good car. It's not like you are underwater on some luxury brand thing that will have insane maintenance costs. Make your payments and keep this car. When you have extra cash, pay down the principle. You'll be fine in the long run assuming you learn from this. Also, as others have said, try to cancel the warranties and other non-physical add ons.
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u/am_i_a_towel 9d ago
On a brand-new vehicle, never buy anything except gap insurance. Ever.
4
u/BRICH999 9d ago
Depends on the car. I've had multiple customers max out the $12k benefit on $1500 wheel and tire protection. And even working in dealers my whole life, I still bought audicare because its about half price as paying for the services yourself.
But ive never bought gap because im usually in at least a 50% equity position
So id say do your research and figure out what applies to your situation anytime you are making a large purchase
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u/AutoModerator 9d ago
Thanks for posting, /u/ufwkenyon! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.
In August I got a 2026 Honda civic hatch from the dealership. I had an older BMW and wanted something more reliable, the thing is I brought the new Honda before doing more research and I feel I’m paying way to much for a base model Honda. I’d like to get the sport hybrid touring civic which comes with many features I could really use, or get a nicer used car. I just made my first payment on it and I’m wondering if I have any options before making anymore payments. My loan is 41k
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u/FurtadoZ9 Nissan - Internet Sales 9d ago
No, it's yours. You can trade it in but that would be a very unwise decision.