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Discussion Starter · #1 ·
so i was fileing my taxes online and a deduction i could shoot for was new car purchase. so i pulled out my paper work from last year to look up that information .


i found a huge error.....


on my paper work it says 15.99 apr

on my auto loan statement i'm paying 22% apr


there is a huge error. thats almost 10% more i'm paying.

what are my options?
 

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1. why in the hell would you take a 16% loan out on a car...on a 22K car thats over 10k in financing...at 22% thats 14.5k in financing...

2. points aside. Are you sure this is not an apy vs apr confusion? they are very different.
 

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1. why in the hell would you take a 16% loan out on a car...on a 22K car thats over 10k in financing...at 22% thats 14.5k in financing...

2. points aside. Are you sure this is not an apy vs apr confusion? they are very different.
Glad I wasn't the first to say this! Angry women scare me.
 

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seriously... also, figure out state laws, I used to sell cars in CT and our legal limit was 18%... which is astronomical. You need to talk to a banker, (credit union idea may be GREAT), and fix this....

I got 2.65% through my credit union over 4 years
 

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Discussion Starter · #6 · (Edited)
1. why in the hell would you take a 16% loan out on a car...on a 22K car thats over 10k in financing...at 22% thats 14.5k in financing...

2. points aside. Are you sure this is not an apy vs apr confusion? they are very different.
1. my credit wasnt to great, and i wanted out of my lease. i had a scion XD that i was leasing, i jumped into the scion XD in 2008 when i was having a very hard time paying such high gas prices. i setteled with a lease.
2010 was a good year so i dropped the scion for the mazda 3. my credit was only 635. and i only bring home 11,000 a year since i am disabled. i got what ever i could to get into the car.

2. yep im positive.


right now i'm in a hard spot. i've tried refinancing but i keep getting denied. my debt to income ratio is not ideal for refinancing. ironically.... since i am on a limited income its very hard to really improve anything. though i have no late payments. i have 750$ credit card that is maxed out and a 1500$ loan that i owe 250$.

i'm going in on monday to sit down with chase, and then mazda. to figure out what can be done.
 

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Discussion Starter · #7 ·
Refinance. Do you belong to a credit union?
yep! i belong to a credit union, been with them 7 years. they were my first bank.

i've had 2 auto loans with them before so i just have to fuss a little bit and appeal if they deny me once again.

i'm going in on monday. i have perfect payment history all they way back to 2005 (first car loan)
 

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I got 2.65% through my credit union over 4 years
damn thats low... I got 3.56 on my mazda.. and I thought that was low.


yep! i belong to a credit union, been with them 7 years. they were my first bank.

i've had 2 auto loans with them before so i just have to fuss a little bit and appeal if they deny me once again.

i'm going in on monday. i have perfect payment history all they way back to 2005 (first car loan)

good luck...
 

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I can't imagine paying either of those, I hope you get it worked out...

I only bought the MZ3 for the 0%, the Mazda/Chase guy rejected me at first without a co-signor or cash down so I told them I was going to shop somewhere else. 10 minutes later he called me back, don;t be afraid to make some demands to your bank
 

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be happy you're not in VA...there are no limits for loans. i've heard guys getting 30% and higher.
 

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These friggen vultures that take advantage of people when they are down are nothing better than loan sharks in a different business.
Loan rates that high should be illegal.

Pat.
 

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These friggen vultures that take advantage of people when they are down are nothing better than loan sharks in a different business.
Loan rates that high should be illegal.

Pat.
Why should rates that high be illegal? Companies are lending people money whose history isn't the best.

If you can't afford something, save for a year, and then jump into it.
 

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Banks take risks on any and every loan they give out. For those with bad credit, it only fair to charge them a higher rate because they are a higher risk. For with good credit (like me, score of 813) should be allowed to borrow at a lower rate. I don’t know what the OP’s credit score is so it would be impossible to say if the dealership screwed them over with a high rate. I remember back in 2002 when I was buying another car, the dealership came back with paperwork stating a 5.99% APR. I laughed at them and told them to try again. Final paperwork had 1.9%.

OP: Where you ever late on any payments? It could be that you started out at 15.99% and the rate was increased because you were late on a payment. This type of rate hike is completely legal and usually within the terms and conditions.
 
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