I bought a 99 honda accord V^ last year in Novermber froma dealer. I feel like they screwed me over becuase it already had 127,000 miles on it and got it for $9,500 plust tad plus interes. Befroe i even came to this dealer i went to several others. Because my credit score was really bad nobody would qualify me but the creditor i got. So- theygave it to me with 23% interest. According to tehm- my balance is $8,000 since last year it has barely gone down cuz interest is so high. If i decide to send a $3,000 payment in JAN and $2,0000 in April- what would happen next?? obviously the balace is gonna go down but- if i decide to pay it off before the year is over will i still have to pay the interest? is there a early payment penalty?
2006-10-12 08:53:28 · 13 answers · asked by Ms.Budonkadonk 4 in Cars & Transportation ➔ Buying & Selling
The only way to know if there is an early payment penalty is to read the paperwork they gave your when you bought the car... If you pay it off early, and there is no penalties, you won't owe the interest. Make sure though, if you send in lump sum payments that you write on the check or payment slip that it is for the PRINCIPAL only. Otherwise they'll just apply the extra money to the interest.
2006-10-12 08:57:06 · answer #1 · answered by jamieinreno 3 · 1⤊ 0⤋
It might be a penalty you have to talk to the dealer. When you are paying off a loan the bulk of the loan interest gets paid off up front. That is just how its set up. I hope you understand this. If don't you should go to a bank and ask them because I didn't understand when I was first told. If you pay early you have to make sure that its being paid on what you borrowed and not the interest. If you just go in there and pay extra they will put it towards both. As for the interestbeing so high that is the price you have to pay for bad credit. Take it as a lesson learned it pays to pay your bills or you pay more. Hope everything goes well with you.
2006-10-12 16:07:49 · answer #2 · answered by Smooch 2 · 1⤊ 0⤋
You didn't screwed, you got the interest rate that you qualified for based off YOUR credit choices, nobody else's.
Call the finance company that owns the car and ask what the payoff is, and if there are any prepay penalites. If you have a simple interest loan, you should be fine, and any money you pay them above the minimum due goes to the principal.
If there are penalties for prepay, or early pay off, then figure out what the best route is for you. Sometimes it's best to take those lumps and move on, it just depends. Figure out how much each decision would cost you, and take the least costly option which doesn't hurt you financially.
2006-10-12 16:04:26 · answer #3 · answered by Manny 6 · 1⤊ 0⤋
Dude, you got boned. Paying 23% is way too high.
But If you need a car then you need a car.
Check your contract, see if there is a penalty for paying the contract off early. Ask the dealer if there is a penalty for paying it off early. Ask them to show it to you in the contract.
You might want to join a credit union and refinance if possible.
2006-10-12 16:04:57 · answer #4 · answered by Anonymous · 1⤊ 0⤋
You paid a lot of money of such an old car with too many miles. Next time go to www.autotrader.com and start looking for cars in your budget.
Check with a friend or a relative and review your paperwork, it is better to pay off early, and you can improve your credit.
2006-10-12 19:51:26 · answer #5 · answered by wazup1971 6 · 0⤊ 0⤋
i hate to be the one to say this,but this is something you should have check on before signing on the dotted line.read you contract and see what it says that paper is legally binding in any court room.if it does not state that there is a penalty for early payment of balance due then your all set they can not charge you .check it out good luck
2006-10-12 16:00:32 · answer #6 · answered by Anonymous · 1⤊ 0⤋
No early payment penalty and no payments on interest if you pay the car in full. You can call the bank and get the payoff, which would be what you would have to pay prior to interest.
2006-10-12 15:55:54 · answer #7 · answered by Anonymous · 2⤊ 1⤋
read your contract. it may have a prepayment penalty if paid off too early. They did not screw you over. no one forced you to buy the car at that price. you did it to your self sorry to say it but in all cases you are always responsible for what happens to you.
good luck
2006-10-12 15:58:19 · answer #8 · answered by Anonymous · 1⤊ 0⤋
Well less owed, less they can tax toward your interest. Its a good idea to own your own car, and now that you will, perhaps that will also repair your credit. Never borrow from that kind of creditor.
2006-10-12 15:57:09 · answer #9 · answered by Anonymous · 0⤊ 0⤋
they sure did-------make a complaint with better business-----try opening an account with a credit union--any one--they can help you get a high risk loan with less restrictions then a reg bank----you could threaten a lawsuit--i think the interest rates are sort of loan sharkish*------renegotiate the loan with the loan comp----good luck
2006-10-12 15:58:00 · answer #10 · answered by darkangel1111 5 · 1⤊ 1⤋