Is it common for the interest rate on an auto loan to go up when the balance is close to being paid off?
I am under $2,000.00 and I am paying more in interest now then in the beginning of the loan.
Just wondering if it has to do with the balance remaining. Seems like they are trying to get as much money out of me before I pay it off.
2007-07-03 06:18:12 · 3 answers · asked by ♠♣♥Rogue♣♥♠ 5 in Business & Finance ➔ Credit
Auto finance is what I do for a living and this is not common at all.
As a matter of fact car loans are simple interest and the interest you pay should never change.
I would call your lender and demand a explanation, then review your loan papers and see what they say about your monthly payments. They should all be the same except the very last one.
2007-07-03 06:42:33 · answer #1 · answered by ? 7 · 2⤊ 0⤋
1
2016-09-26 08:47:07 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Is it a loan from CapitalOne? They are notorious for doing stuff like that. It’s not really all that common as auto loans usually have a fixed rate but if yours had a variable rate (most common in real estate) then it will fluctuate with the market.
2007-07-03 06:29:34 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No it's not common at all. Call them and ask for an explanation.
2007-07-03 06:26:59 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Here you can get rates: CREDIT-AND-FINANCE.COM
2014-05-15 07:04:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋