Guys and girls,

My friend just went to purchase a car yesterday - asking price on the car was $8000, after all the papers were signed interest added, plus tax, license and fees.....it came out to $16000.

This is what I think it should have totalled out to:
Asking price = $8K
Tax = ~$800
Advertising fees = $200F
for a high 21.5% apr = ~$1800

I'm thinking the total should have been around $12000 with everything, right?


Is this price even possible with the worst credit and highest apr? Seems like my friend got screwed - What do you guys think?

Please send me all your feedback ASAP........Please for their sake!

Any possibility they can take the car back?

 

The rate is the killer. Remember the its 21.5% per year, not just 21.5%

So its more like $1800 for the first year, then 1600 on the second year, and so on. $16000 sounds about right with that high of a rate.

How long was it financed for?

 

options + warranties + perma plate + etc?

 

damn that sucks

 

yeah it could be right if he got a 5+ year loan @ 21%...

http://www.unclecu.com/autoLoansCal.html

 

omfg, 21% ?????

 

Hope the credit is soo bad that he can't get the loan, that's the only way he can get out I think. But who would deny a 21% loan

 

I was told that they are set-up to make payments at $260 per month. According the the calculations from the site the above link takes me to, the total financing should only come out to ~$9100.

I used
$8000 as the Loan Amount
21.5% as the Interest Rate


Try it with the above numbers I used and see what you get.......

Now you see why it seem so outrageosly high!!!! I think they should get the BBB involved on this one!

 

I was only using 21% as the extreme to why the total would have shot up so high!!

 

Does your friend have good credit?? cause dealership can charge more then 21.5% I think it's up to almost 30% now

 

He certainly got screwed, and the suspect is the 21.5% apr. No car is worth that interest.

EDIT: just did the math, and from that it shows $12k using that calculator. Was perhaps the loan higher then that? Did you factor in registration or anything else like that?

They probably figured anyone who's willing to pay such an outrageous financing fee probably will sign anything to get the car. I don't doubt they took advantage of him, and tacked on an extra couple grand.

 

I think he's got a nice court case.

 

court case? heck no, it's the guys own fault for not knowing terms of the contract...21.5% is horseshiz though

 

This is why you pay cash.

 

Yeah, I wouldn't sign anything I didn't agree with but they'll lower it if he threatens with huge publicity. That is so damn low down to do that to someone.