They sold me the car for almost 14,000 w/ the fees its 16,000. i put 2,000 down payment. I looked at the prices and by the time i pay it in 6 yrs it would end up about 25,000 i would end up paying total. I'm supposed to pay $332 a month. If I was to pay more than $332 a month will I still end up paying up to $25,000 in 6 yrs? I spoke w/ the salesman and he said the more I send every month the less I would end up paying in 6 yrs so it wouldnt be $25,000. I feel like they ripped me off. What do you think? This is my first time purchasing a car which I need to pay monthly. Any comments/suggestions?
2007-02-23 10:43:59 · 6 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
Never, ever finance your car through the dealership. Always go to a bank or credit union and get a pre-approved loan. When you do it this way, the fees and interest are all explained in advance, very clearly and in common language. When you finance through a dealership, the fees and interest are not explained in plain language and they are extremely pushy to get you to sign. Did you get ripped off? No. You just did not do your homework prior to going out to make a large purchase. Never sign anything until you get the "bottom line" explanation. Paying $332 for six years sounds like you are paying a higher interest rate than you should, but that is where the dealership makes thier extra profit. Make sure you are reading the contract correctly, because the numbers do not add up.
2007-02-23 10:52:08 · answer #1 · answered by rex_rrracefab 6 · 0⤊ 0⤋
Yes you got ripped off.
Used cars usually have much higher interest rates than do new ones. (can be as much as 6 to 8% more)
Most likely you could have gotten a new car in the $20,000 range for a similar payment with a full warranty.
Any extra money you can pay will go towards principle which in the long run will mean less interest paid. That assumes of course that you do not have any kind of early payment penalty on your car.
The sooner you can make extra payments the less you will pay n the long run. Even an extra $25 or $50 a month would make a huge difference.
2007-02-23 10:55:10 · answer #2 · answered by fkd1015 4 · 0⤊ 0⤋
The extra money you would be paying is the interest. 25,000 is alot after interest is though. Are you sure this is right? Find out how much interest you are being charged just to make sure. And yes, if you pay more each month, you wil be paying less in the long run. Interest is calculated from the balance left on the car. so if you have 16,000 unpaid, the interest calcualted will be based off of 16,000. Say you paid ing 10,000. Then the interest calculated will be based off of 10,000.
At least that's what I think.
2007-02-23 10:49:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋
$332 x 72 mo. = $23,904, not $25,000
$332/month at 72 months for a $14,000 loan (16,000 - 2000 down) equates to a 19.60% interest rate!!!
That's a SUPER HIGH interest rate. Do you have really bad credit? There is almost no way an auto loan should be that high of a rate.
2007-02-23 14:21:34 · answer #4 · answered by Kyle H 4 · 0⤊ 0⤋
Well you should had figured that out before you signed the paperwork. They sure pulled one over on you. It's seven years old most places are not going to give you a loan,but you might try getting one with better payments. I got one from Capital One on an 82 Vette.The interest is only costing me about $2100.
2007-02-23 10:50:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You should have asked prior to signing then we could have told you not to do it.
It's too late now, the car is yours and you will end up paying $9k in interest.
2007-02-23 13:00:58 · answer #6 · answered by Anonymous · 0⤊ 0⤋