The total was $9000. i dropped $3000 for a down payment. My monthly payments were 125 for about 4 years. Now it is 159. I have never missed a payment. My interest rate is pretty high. It's 22%. My balance has been under 5000 since the first year i purchased it. Should i still be paying for my bike 6 years later? If not what kind of legal actions or anything can i do? Thank you
2007-05-29 09:53:04 · 4 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
Lemme guess, Yamaha????? Did you get sucked into that promotion where the payments are stupid low for two years? Maybe Yamaha wasn't the only one to offer that but they were very successful at it. A 22% interest rate isn't pretty high, it's rediculous. The whole idea of that promotion was to get you in to buy, but you were supposed to trade into a bigger new bike after 2 years. With decent credit you should go to your bank or credit union and get a loan to pay off your current loan. If your credit is something better than garbage you will get an APR of no more than 14%. Do it now!
2007-05-29 10:35:14 · answer #1 · answered by Dogbettor 5 · 0⤊ 0⤋
No, you shouldn't be paying on your bike 6 years later, unfortunatly you signed up for just that when you purchased it.
You made a good size down payment, but your monthly payments are small and the interest is very high. Do you know how much of that 159 is going towards interest and how much is going towards the balance of the loan?
If it is at all possible, pay larger monthly payments. Otherwise you will be paying for many more years, on a bike that isn't worth anything close to what you have paid.
I had a credit card one time with a high rate, out of the 75 dollar monthly payment (minimum) like 60 was going to interest. You can see how it would take years to pay it off, only 15 a month is going towards the balance, yet I was paying 75.
As far as I can see, there are no legal actions you can take. There is no one to go after legally. You signed the contract, you knew the deal, although you did not think it out very well.
You can try to refinance it, but honestly your best bet would be to double up on payments, or whatever extra you could pay a month towards it.
2007-05-29 10:16:33 · answer #2 · answered by starwings20 5 · 0⤊ 0⤋
Hi, I did a quick check with an auto loan calculator.
Yes, six years for that loan is about right.
If you financed $6000 at 22% for 6 years your monthly payment should have been $151 and the loan would be paid off 6 years after it started .
A lower monthly payment means a longer term and more interest paid in total. You would pay about $4800 in interest on that loan.
You need to check with the finance company and find out what the current balance is , it should be very close to 0. If its not you may want to talk to your bank manager and see what options you might have .
Many credit cards would be a lower rate than you are paying.
2007-05-29 10:14:24 · answer #3 · answered by mark 6 · 0⤊ 0⤋
Yuu should simply look at your contract and look at the term of the loan. It should be very clearly defined in terms of number of payments and value of each payment. If you don't have the contract, call the bank and ask them. This does not sounds too far out of whack at first glance. But your first mistake was signing a contract for 22%. You're going to wind up paying more in interest than you are for the bike.
2007-05-29 10:00:57 · answer #4 · answered by Jay P 7 · 1⤊ 0⤋