It’s the first time that I buy a brand new car from a dealer. It’s a Honda Civic LX. I would like to know if I got a fair deal, an average financing, or if I got charged more than I should be.
The deal is done. But at least, I want to know if this is the average burden faced for every new car owner, to face it as a man.
Here are the details: Mi credit 650. Sticker price: 335 Down Payment: 00 Interest rate: 9.4%
and then in the truth-in lending disclosures reads:
Finance charge: 09.21 Amount financed: 299.11
Total of Pymts. $ 32008.32 Total Sale Price: 35008.32
72 Payments of 4.56
Let me know if you think this is an average loan, or not, and the possible options if any, that I may have. (I was thinking paying 6 months like this, wait for my credit to go up, and then try to finance with the bank since there’s no penalty for paying early. I’ll appreciate your opinion.
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{ 2 comments… read them below or add one }
Auto finance is what I do for a living and this makes no sense.
If the sales price was $18,335.00 and you had a down payment of $3,000.00 that leaves a balance of $15,335.00. So how in the world was your amount to finance $24,299.11?
This is a increase of of $8,964.11. Every thing else adds up as far as the payments and total amount paid if you make all of the payments, but where in the world did the additional $8,964.11 come from. Even if you purchased a service contract, gap insurance and credit life this should have amounted to no more than about $5,600.00.
As far as options, since the deal is already done your options are none. If you make about 12-payments you should be able to refinance but your LTV (loan to value) is going to be sky high due to the additional $8,964.11 added to the amount financed.
Your interest rate of 9.4% is high.
Interest rates depend not just on your credit score, but also on other factors like the lender and regional competition. However, I think that your rate is still quite high. (Sorry to be the bearer of bad news.)
To compare, I bought a new comparably priced car in April with a slightly lower credit score than you with an interest rate of 5.25%.