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- Jan 1, 2009
So here's the situation...
Last weekend I was out looking for a new/used car... I ended up finding a car with the sticker price of $12,500. I really liked the car so I started the process of getting financed and here's the payment plan they were trying to put me on.
$4,500 down and $300/month for 60 months which ends up being $22,500. Being that my credit isn't good they told me I was being financed @ 25%. But after hearing that total amount I chuckled and walked away with the ill stone face.
So my question is this... Am I getting took here or is this really how banks get down?
I thought that if I was getting financed for a car @ 25% it would only be 25% more of total cost... Example $10,000 + 25% interest = $12,500(isn't that what it should be or is there another formula banks work off)
For the record they never said anything about annual interest rate, just that I was being financed at 25%.
Any help would be appreciated... Thanks NT.
Last weekend I was out looking for a new/used car... I ended up finding a car with the sticker price of $12,500. I really liked the car so I started the process of getting financed and here's the payment plan they were trying to put me on.
$4,500 down and $300/month for 60 months which ends up being $22,500. Being that my credit isn't good they told me I was being financed @ 25%. But after hearing that total amount I chuckled and walked away with the ill stone face.
So my question is this... Am I getting took here or is this really how banks get down?
I thought that if I was getting financed for a car @ 25% it would only be 25% more of total cost... Example $10,000 + 25% interest = $12,500(isn't that what it should be or is there another formula banks work off)
For the record they never said anything about annual interest rate, just that I was being financed at 25%.
Any help would be appreciated... Thanks NT.