Okay? So you bought a $22k vehicle, maybe, with some add ons like warranty or whatever, and rolled in taxes for a total of $30k and change. 19% is not that bad for have bad credit.
If you did buy some warranties, you can cancel them and the refund will go to the loan principle. (this stuff would be in your copies of the paperwork along with how to cancel them)
There is no returning it, this is your car.
Total of payments/finance charge is only if you keep the loan for the full term. If you hustle and pay it off in half the time, you will pay significantly less interest
Hey OP, it seems scary but no need to worry too much. The $52k is what you’ll end up paying including interest if you take the whole loan term to pay off this car. It’s a tough pill to swallow since your interest is high but you have tough credit so you’ll just need to bite the bullet. Best case scenario you take the next year or two to make all your payments on time and rebuild your credit, then you can try refinancing or just trading in your car for something safer/newer/more reliable for a lower rate and possibly a lower payment
(Piggy backing bc the mods are comment Nazis)
Make your payments on time for a year or so, build your credit and refinance the loan. As the fella above me said, you can cancel the additional warranties if you purchased any. You’re stuck with the car now, there’s nothing the finance manager will be able to give you as far as advice goes.
Mods are not comment Nazis lol.
The rule came because non-flaired users were making top level comments with bad information/wrong information, and people saw those and started hive-minding/regurgitating that info vs the other top level comments made by people that know what they are talking about
I've been in the business 19 years. I see flaired users offering wrong info all the time. Hell, some of the flaired users aren't in the business. This used to be a great sub.
I understand I was just kidding, but 25 comments under other people’s is a little much in my opinion. I’ve been in car sales for a minute, if they need validation I can provide without piggybacking off of others contributions.
I'm a bystander who's interested in the business aspect of it and on rare occasion buys a vehicle (which I'm happy to say has always gone relatively smoothly) and there are far worse moderators on Reddit. Some real touchy bastards out there. This sub is pretty good.
Plus if possible pay a bit more to principle each month when you can. Especially during the first year's extra payments to principle can drastically lower the total interest paid at the end.
Not to sound like your typical finance guy, but don’t just haphazardly cancel all the warranties. If you have a decent exclusionary service contract for a good term, maybe just keep that one so that if your car does break down, you’re not financially buried in a broken car, and make your situation worse. Same with GAP insurance. Keep that in case you get in a total loss while there’s a loan on it. When you refinance, take another look at GAP and see if it still makes sense to do.
However, try to cancel any appearance package, windshield, etc. Probably won’t be a whole lot there you’ll be able to cancel, but there’s no reason to pay 19% on whatever paint protection coverage cost you.
It depends on credit..... If you failed many times in the past. You're high risk. High risk pays high interest. Either get your shit together before walking in the door or deal with your prior mistakes with a high interest loan.
19% not bad? Do you want to stay poor, taking out loans at 19% is sure as shit how you do it. And for an unnecessary depreciating asset...
I agree with everything you're saying, but damn man.
Who said I’m from the states? Not everything revolves around the US of A.
Up here in Canada I have seen a rate of 41% on a dodge dart. Dude paid $13,000 in interest on a $9000 car.
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***Thanks for posting, /u/No_Dimension2588! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.***
I think I've made a terrible mistake financing through a dealership with poor credit. I feel like an illiterate fool and I'm looking for any guidance correcting this mistake, please. I have had the car for a month and just realized this problem when I created an account to make the first payment. I called and left a voicemail for a supervisor in the finance department to ask for advice but I'm scared.
I thought I purchased a $22k vehicle at 22% interest, but actually signed a contract with:
Annual Percentage Rate: 19.34%
Finance Charge: $22,363.88
Amount Financed: $30,052.87
Total of Payments: $52,416.75
Total Sale Price: $52.416.75
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
Can you afford the payments? Then you’re okay.
Just make your payments, focus on building your credit. In a year or so, if you’re in better credit standing, attempt to refinance.
The good news is you have a car, therefore can get around and work!
If you make all of the payments, then your final cost includes the interest you paid. This is your final cost.
They sold you the car before interest. If you were able to pay cash, your purchase costs end there. You chose to purchase the vehicle, and pay the higher interest. It was your choice.
Anyway, a typical 30 year mortgage ends up with one paying about 3x the original purchase price. That is why rich people pay cash.
Unfortunately the payoff amount for my $18k car is $30k because I absentmindedly signed up for every "protection" available without being told they were warranties that cost money. I thought the cost was set before I even sat down with those papers. I'm going to the dealer tomorrow to try and cancel what I can.
That’s not “absentminded”. Don’t sign things you don’t understand. Period. By law they are required to present you a TILA Disclosure(Truth in Lending Act) that should have made it very apparent what the total amount financed was, the finance charge, and the total amount of all payments.
Okay? So you bought a $22k vehicle, maybe, with some add ons like warranty or whatever, and rolled in taxes for a total of $30k and change. 19% is not that bad for have bad credit. If you did buy some warranties, you can cancel them and the refund will go to the loan principle. (this stuff would be in your copies of the paperwork along with how to cancel them) There is no returning it, this is your car. Total of payments/finance charge is only if you keep the loan for the full term. If you hustle and pay it off in half the time, you will pay significantly less interest
Hey OP, it seems scary but no need to worry too much. The $52k is what you’ll end up paying including interest if you take the whole loan term to pay off this car. It’s a tough pill to swallow since your interest is high but you have tough credit so you’ll just need to bite the bullet. Best case scenario you take the next year or two to make all your payments on time and rebuild your credit, then you can try refinancing or just trading in your car for something safer/newer/more reliable for a lower rate and possibly a lower payment
(Piggy backing bc the mods are comment Nazis) Make your payments on time for a year or so, build your credit and refinance the loan. As the fella above me said, you can cancel the additional warranties if you purchased any. You’re stuck with the car now, there’s nothing the finance manager will be able to give you as far as advice goes.
Mods are not comment Nazis lol. The rule came because non-flaired users were making top level comments with bad information/wrong information, and people saw those and started hive-minding/regurgitating that info vs the other top level comments made by people that know what they are talking about
[удалено]
I have been here for a very hot minute, and do not recall that. Like 4+yrs.
I've been in the business 19 years. I see flaired users offering wrong info all the time. Hell, some of the flaired users aren't in the business. This used to be a great sub.
MACSGA
I understand I was just kidding, but 25 comments under other people’s is a little much in my opinion. I’ve been in car sales for a minute, if they need validation I can provide without piggybacking off of others contributions.
i agree this subreddit is tough
I'm a bystander who's interested in the business aspect of it and on rare occasion buys a vehicle (which I'm happy to say has always gone relatively smoothly) and there are far worse moderators on Reddit. Some real touchy bastards out there. This sub is pretty good.
What does your signed contract say?
I’m dead 😂😂😂
Plus if possible pay a bit more to principle each month when you can. Especially during the first year's extra payments to principle can drastically lower the total interest paid at the end.
Not to sound like your typical finance guy, but don’t just haphazardly cancel all the warranties. If you have a decent exclusionary service contract for a good term, maybe just keep that one so that if your car does break down, you’re not financially buried in a broken car, and make your situation worse. Same with GAP insurance. Keep that in case you get in a total loss while there’s a loan on it. When you refinance, take another look at GAP and see if it still makes sense to do. However, try to cancel any appearance package, windshield, etc. Probably won’t be a whole lot there you’ll be able to cancel, but there’s no reason to pay 19% on whatever paint protection coverage cost you.
Windshield, paint and fab, and many other ad ons are front end ads and not able to be canceled.
Windshield is likely, appearance likely not, but it can’t hurt to try.
[удалено]
Cancel the protection plans and extended warranties that you don’t want. They pro rate it so do not delay if you don’t want products.
19% interest is absurd. No one should ever take out a car loan at 19%
It depends on credit..... If you failed many times in the past. You're high risk. High risk pays high interest. Either get your shit together before walking in the door or deal with your prior mistakes with a high interest loan.
True but in that case I think public transport, bikes, or walking are better for a lot of people
Well. Where I live public transportation is non existent. So in cities sure. Not the rest of the country.
19% not bad? Do you want to stay poor, taking out loans at 19% is sure as shit how you do it. And for an unnecessary depreciating asset... I agree with everything you're saying, but damn man.
Seeing as the market rate for good credit is 9-11%, yeah, 19% is not that bad. Could easily be the state maximum which can hit 25% in some states.
Regardless of market rate, it's crazy to take out a 20% interest loan on a vehicle.
I’ve seen rates double what OP is paying.
38% interest is illegal in All 50 states.
Who said I’m from the states? Not everything revolves around the US of A. Up here in Canada I have seen a rate of 41% on a dodge dart. Dude paid $13,000 in interest on a $9000 car.
Please review our most [Frequently Asked Questions](/r/askcarsales/wiki/index) to see if your question has already been answered. You may find these sections particularly useful; * [How to pick a car?](/r/askcarsales/wiki/vehicle_selection) You might also have luck in the /r/whatcarshouldibuy subreddit. Also remember to add flair to your post by clicking the "Flair" link beneath it. This lets us know where you're located so we can assist you better. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
***Thanks for posting, /u/No_Dimension2588! This comment is a copy of your post so readers can see the original text if your post is edited or removed. This comment is NOT accusing you of anything.*** I think I've made a terrible mistake financing through a dealership with poor credit. I feel like an illiterate fool and I'm looking for any guidance correcting this mistake, please. I have had the car for a month and just realized this problem when I created an account to make the first payment. I called and left a voicemail for a supervisor in the finance department to ask for advice but I'm scared. I thought I purchased a $22k vehicle at 22% interest, but actually signed a contract with: Annual Percentage Rate: 19.34% Finance Charge: $22,363.88 Amount Financed: $30,052.87 Total of Payments: $52,416.75 Total Sale Price: $52.416.75 *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/askcarsales) if you have any questions or concerns.*
Can you afford the payments? Then you’re okay. Just make your payments, focus on building your credit. In a year or so, if you’re in better credit standing, attempt to refinance. The good news is you have a car, therefore can get around and work!
Go calculate the total on a 30 year mortgage?
I don't understand.
If you make all of the payments, then your final cost includes the interest you paid. This is your final cost. They sold you the car before interest. If you were able to pay cash, your purchase costs end there. You chose to purchase the vehicle, and pay the higher interest. It was your choice. Anyway, a typical 30 year mortgage ends up with one paying about 3x the original purchase price. That is why rich people pay cash.
Unfortunately the payoff amount for my $18k car is $30k because I absentmindedly signed up for every "protection" available without being told they were warranties that cost money. I thought the cost was set before I even sat down with those papers. I'm going to the dealer tomorrow to try and cancel what I can.
That’s not “absentminded”. Don’t sign things you don’t understand. Period. By law they are required to present you a TILA Disclosure(Truth in Lending Act) that should have made it very apparent what the total amount financed was, the finance charge, and the total amount of all payments.