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I just met someone suckered in to an auto loan. Gotta see these numbers.

Senior Contributor

I just met someone suckered in to an auto loan. Gotta see these numbers.

This loan was done through a Consumer Finance Company. It works like a credit card.

New vehicle loan, $13,981.26 financed.
Interest rate 16.99%
Minimum payments $200 monthly.

This person has been making a $200 payment for 2 years. Smiley Sad The balance is still over $13,000.

I just broke the bad news to them. Aren't auto dealers great at confusing people.

Message Edited by ilovepizza on 07-21-2007 05:13 PM
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Message 1 of 6
5 REPLIES
Moderator Emeritus

Re: I just met someone suckered in to an auto loan. Gotta see these numbers.

OMG.. sad.
Message 2 of 6
Frequent Contributor

Re: I just met someone suckered in to an auto loan. Gotta see these numbers.

Has your friend checked his FICO credit score? Has he missed any payments? What does the rest of his profile look like? If he has not missed any payments on the loan, he may have a good chance at re-financing the loan with a more reputable company at a better rate. Have him look into a credit union account.




ilovepizza wrote:
This loan was done through a Consumer Finance Company. It works like a credit card.

New vehicle loan, $13,981.26 financed.
Interest rate 16.99%
Minimum payments $200 monthly.

This person has been making a $200 payment for 2 years. Smiley Sad The balance is still over $13,000.

I just broke the bad news to them. Aren't auto dealers great at confusing people.

Message Edited by ilovepizza on 07-21-2007 05:13 PM


Message 3 of 6
Highlighted
Established Contributor

Re: I just met someone suckered in to an auto loan. Gotta see these numbers.



ilovepizza wrote:
This loan was done through a Consumer Finance Company. It works like a credit card.

New vehicle loan, $13,981.26 financed.
Interest rate 16.99%
Minimum payments $200 monthly.

This person has been making a $200 payment for 2 years. Smiley Sad The balance is still over $13,000.

I just broke the bad news to them. Aren't auto dealers great at confusing people.

Message Edited by ilovepizza on 07-21-2007 05:13 PM

Bummer...
 
Rob
Message 4 of 6
Valued Member

Re: I just met someone suckered in to an auto loan. Gotta see these numbers.

Holy Cow,  that is a HORRIBLE amortization schedule.  I also was in a bad car loan. I know what its like.
 
$14000 borrowed
16.99% interest
$200 payments  (About $2.05 of the first payment went towards principal
 
It would take 27 years to pay off and the total of all payments would be approx  $64,816.47
 
This person needs to refinance with a lower payment and kick up his payments a notch.
 
Sounds like a mission for Pizza to help this person.
 
Diamond Dave
Message 5 of 6
Regular Contributor

Re: I just met someone suckered in to an auto loan. Gotta see these numbers.

I need a car loan... Got a phone number for that bank?
Message 6 of 6