Car Loan Scam???? I hope I get some help

[FarFromPerfikt]

I bought a car today, well not completely as I am financing it through Capital One......I went through this dealership in a city close to mine.....everything seemed good to me....I guess I was excited I could get a car loan all myself being only 19. I was too excited. The car is a 2006 Pontiac G6 it was being sold for $12,900 with around $52,000 miles on it, I had a trade in which they marked off around $2,000 making the total owed (not including interest of course, I know that), 10,900.....well heres the BIG BIG problem....I was told that this would be for 5 years/60 months.....for 350$ a month......do the math....that is $21,000....that can't be right can it????? there is no such thing as a 50% interest rate....if there is am I stupid, it's okay because either way I am still stupid......because I have the car now....I am only guessing I was too excited and dumbfounded I didnt actually think about it....I had told the salesman it seemed like a lot to be paying for 5 years...thats probably the only thing smart I can say ....I dont know I have never really bought a car, it all just seems so wrong what the heck am I supposed to do????? am I an idiot....? not only that but somehow the salesman wants me to come bring in $500 for a post date down payment....I know there are many scams in the car selling business but what is this??????

[doyathink]

Did you get the loan paperwork? did you read the fine print?

Yes, there are loans out there that charge that much interest.

Go to your bank and see if you can get a loan through them. Then take that money to pay off the Capital One loan.

[Angel_baby]

Sounds like you got a high interest rate on your loan. Also, when you add it all up they will add the interest PER year. So you can't just say "the interest is 20% on $12,900 for the entire extent of the loan.

 

Example:

 

Car - $12,900

 

Interest - 20% rate - $2,580

 

5 year loan - 5 x $2,580 = $12,900

 

All together = $25,800

------------

 

Loans are expensive. Always better to try to pay off as much as possible.

 

I am buying a house. Selling price was 92,000. Add on the interest and it brought it to 185,000.

[AnxiousGirl]

I'm guessing you don't have any credit to begin with, right? Haven't you ever seen those dealership advertisements in the Sunday newspaper claiming "bad credit or no credit, no problem!"? Of course, it's not a problem because the interest rates are through the roof! They want people like you to come and buy their cars and use their loans.

 

Read the fine print. There is ALWAYS a catch. Congrats on your new car, but don't pay an arm and a leg for it!

[rose2summer]

I have always had this belief to own a car, not pay on super high interest rates.

 

You end up paying double for the car, it loses value, so either pay cash up front or buy a nice used car off a classifieds ad.

 

Try to avoid buying a used car from a dealer, SOME of them will find ways to make money off of you and NEVER ever pay sticker price.

 

You should check kelley blue to get the reasonable price range of that exact car and then bargain bargian bargain

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That way you don't get ripped off. Remember, sales people need to make an income, so they will charge lots extra to have some take home money, that doesn't mean you need to feed their pockets, buy from a nice elderly couple who drove the car on the freeway mostly, so the wear and tear is less.

 

Hugs, Rose

[RedSoxFan84]

My mother financed through Capital One and had absolutely no problems. Long story, but she had to get the loan and the car in a short amount of time, with no down payment, and everything worked out fine. Her credit sucks, though, so the interest rate was high (11%), but she would have been turned down if she went through the dealership. I would finance through them.

 

Who told you how much the monthly payment would be? Capital One or the dealership? Or was this dealership one associated with Capital One? You just bought the car, so I wouldn't panic. You'll be getting a statement soon through capital one, probably via e-mail, regarding your future payments. Just give them a call if something doesn't add up. What did they tell you the interest rate was going to be? When my mom went through them she filled out the online form, they called her and told her she was approved, what her interest rate was, and what the maximum amount she could write out the check was. They FedExed her the blank check, she went to one of the local dealerships, wrote out the check and drove away, not having to deal with the dealership's finance department.