I recently purchased a new car (Toyota Yaris). The sticker price is around $14k, but after the sales tax, finance charge, and some extras were factored in, that number jumped to over $22k. Ugh. The finance charge alone comes to almost $6k, and the loan terms are 11% interest over 6 years. My question is, if I pay off the car faster than the agreed terms, will the finance charge decrease? It seems like an obvious "yes," as interest is a function of time... and that is how every other loan seems to work. However, on my bill it appears that Toyota has charged all 6 years of interest up front, so I owe them the $22k no matter how fast I pay off the loan. That`s impossible, right?
2006-09-01
18:59:18
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6 answers
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asked by
Bad-Bird
2