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#2428 of 2451 Re: Auto Loan [sibsoner]
Jul 17, 2012 (8:05 am)
Hmmm... well, maybe I'm wrong here, but I think what she may be referring to is the fact that your daily interest is increased when you don't pay on time. So, for instance, 1 day after your payment is due, you'll gain, let's say, $2.50 interest rather than the $2.45 interest you'd gain if you had paid on time.
In any case, $480 sounds REALLY excessive for 2 late payments if that is in fact what she is referring to.
#2429 of 2451 Re: Auto Loan [qbrozen]
Jul 17, 2012 (8:09 am)
Yes! that is somewhat what she said. She said it like if I paid early or something. but she said i put on $8 a day and that was $240 a month. This is insane to me.
#2430 of 2451 Re: Auto Loan [qbrozen]
Jul 17, 2012 (8:17 am)
I don't understand how this happen to me Am I that dumb? I can't get caught up and now I ad on $240 a month paying 30 days late each month I will never pay this off. Ford credit loan I took was not at all like this. I don't know what to do!
#2431 of 2451 Re: Auto Loan [sibsoner]
by kirstie_h HOST
Jul 17, 2012 (8:36 am)
If you are near the beginning of your car loan, then the balance of the loan is high, and the interest is based on the balance of your loan. A higher interest rate could also contribute to the higher per-day charge.
In any case, the finance company does NOT want to repo your car. That is the last thing they want, just as it's the last thing you want. Try calling them back and talking to them about a payment plan to pay off the extra. If you don't get a satisfactory answer, ask to speak to a supervisor. Tell them you want to work with them. That's a good place to start.
#2432 of 2451 Re: Auto Loan [sibsoner]
Jul 17, 2012 (9:22 am)
I'm sure your Ford loan worked that way, too. They just never told you.
I still don't think its quite right, though. How big is your payment?
My guess is she recited the total interest charge to you, not just the difference between the interest if you paid on time and the interest when you pay late.
#2433 of 2451 Re: Auto Loan [qbrozen]
Jul 17, 2012 (9:56 am)
No it was not the total she is saying I am adding another $240 a month plus the interest I was originally occurring. This is why it did not make any sense to me. My loan was 14K I now owe 14,700 6 payments later.
#2434 of 2451 Re: Auto Loan [qbrozen]
Jul 17, 2012 (9:58 am)
my loan is for 14,000 19% rate 1,700 down. 60 months
#2435 of 2451 Re: Auto Loan [sibsoner]
Jul 17, 2012 (1:27 pm)
yup.... that will kill ya.
#2436 of 2451 Re: Auto Loan [sibsoner]
by kirstie_h HOST
Jul 17, 2012 (2:34 pm)
As qbrozen pointed out, it's the 19% interest that is causing the interest to pile up at a greater rate than you are paying off the loan. This will continue to happen if you continue to pay late on this loan. You will want to review the terms of your contract carefully, because there may be a provision, if you get a certain amount behind or are X number of days late a certain number of times, for them to "call" the note - this means that they would have the option to require you to pay the entire balance immediately, or face repossession. I can't tell you without reading your specific contract.
You are in a hole right now, but it isn't insurmountably deep. The way out is to pay on time, EVERY month, from here on out.
#2437 of 2451 Are dealers obliged to offer manufacture financing incentive?
Sep 09, 2012 (11:50 am)
I have just purchased a new 2012 Subaru Forester. But the dealer did not offer me the manufacture 0.9% APR financing special offer. Instead, the dealer had a bank financed the car with a higher APR. Is the dealer obliged to offer manufacture financing incentive? Is there any way I can ask the dealer to fix this? Thanks!