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 10:45:00 · 6 answers · asked by Anonymous in Cars & Transportation ➔ Car Makes ➔ Chevrolet
Good for you. American muscle! Now, shop around and try to find a better interest rate. You can refinance this car from a bank. Never finance through the dealership, as they usually jack up the interest rate to make a profit. If you are going to pay extra each month, make damn sure you are paying on the principal. In all honesty, you should not have financed for 6 years.
2007-02-23 23:34:33 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Just like prepaying a mortgage, the sooner you get out from under paying the balance, the less you'll pay in interest. I'd suggest adding at least a couple of hundred dollars to each month's payment, if possible and clearly indicating that it is to be applied to the principal of the loan. In that manner you'll be paying the loan off in less than four years and you'll save a thousnd dollars or more in interest. Make sure there is no "prepayment penalty" clause in your purchase agreement before doing this, or the lender may end up charging the full amount of interest anyhow.
By the way, $ 332 per month for five years is $ 19,920 plus the $ 2,000 down payment makes the car's price 21,920, not $ 25,000.
2007-02-23 18:55:38 · answer #2 · answered by Kiffin # 1 6 · 0⤊ 0⤋
Alright, no more joke answers are needed here. Depending on your loan deal, you can pay it off early without any faults. It sounds like you have a pretty high interest, maybe 9 or 10%? I would try to pay it off as early as possible. Also, just for future reference, never do a 6 year loan unless you need to save up for a few months and then pay it all off at once. Overall, a 5 year plan is way better. If you feel you paid too much, which unless it is in showroom condition you may have done, next time you buy a car, bring a good negotiator and research all the discounts, i.e. recent college discount or military. Now that the deal is done, don't worry too much about the price. If you are happy with the car and the amount you paid, then it was a good deal.
2007-02-23 19:08:23 · answer #3 · answered by Anonymous · 1⤊ 0⤋
why would you buy a 7 year old used american car. this car will cost you alot more to fix and maintain than 25,000 in 6 years. return it and buy a new car. thats very expensive. you can get that car on ebay for 7-8,000 on ebay.
2007-02-23 18:48:43 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Do an insurance job. Have somebody steal it, strip it, and burn it. After that get your insurance company to cut you a check and by something new. Your insurance rates will go up, but you will no longer be a hostage to a finance company for a late model american car.
2007-02-23 18:56:20 · answer #5 · answered by BionicNahlege 5 · 0⤊ 1⤋
Sorry for your loss.It wont even last till the last payment.
2007-02-23 21:29:08 · answer #6 · answered by joystoy33 3 · 0⤊ 0⤋