I therefore purchased a car in July for $10,000 with finance. Please explain why I noticed today that I am paying $23,000 in total. I really cannot accomplish this. In less than two years, I intend to leave the United States. How am I going to escape this? I need suggestions, please. I’m in serious need. Should I just let them repossess the car or sell it for the payoff quote? Guys, please provide options. And since I’ve accepted, please save the mistakes I made. Just please, gentlemen, assist me.
What is your interest rate, then?
What conditions apply to your loan? Is it possible to refinance? The majority of large financial institutions will offer you a higher rate than many credit unions.
We need more details. Are you referring to the total amount of payments added up? For a $10K loan to total $23K, the interest rate would have to be around 21-22%. Did they give you a full breakdown before you signed?
This is the third post like this in a week it seems car loans are becoming the new financial trap out there.
For anyone reading this, never, ever take a car loan with an interest rate higher than the prime rate. Cars depreciate so quickly. Even with an 8% interest rate, a $10K car loan can end up costing you $16K, while the value of the car drops by half. You’re better off buying a cheap used car until you can rebuild your credit and qualify for a fair loan.
Don’t feel pressured to accept whatever rate the dealership offers you. You can absolutely walk away, get pre-approved elsewhere, and come back. They might say they can’t hold the car or guarantee the price, but remember they are experts at making you think you need them more than they need you. In reality, it’s the opposite they’re feeling the pressure too.
Yes, you are entirely correct.
You are unaware of the loan’s duration and frequency of payments. It is not possible to invent numbers like that.
Yes, I certainly can. I estimated the rate using a loan calculator and am using a standard 60-month term. I made it very clear before that that this was a hypothetical situation and that we needed additional information.
In relation to its valuation, what do you owe on it?
Is it possible to sell it and cover the remaining amount without having to spend money yourself? or without needing to spend more than the bare minimum of money out of pocket?
With all loans, the amount you pay back will be many times the asset’s initial value. Examine the final cost of a home after financing.
I understand how upsetting this might be. I also struggled with a car loan, feeling trapped with hefty payments. One way to keep the car out of repossession might be to sell it. Simply clarify with the vendor how much you want to pay down. Even if it can be intimidating, making the kind of progress described here is unquestionably a positive step.