Auto Finance Charge WAY HIGH

[karmapharmer]

I was just reviewing my auto loan from last year and trying to figure out why i still owed so much. I saw where it said i paid an auto finance charge, which i found out the average price is $1,000.00, and represents the amount they charge you just to finance you. Mine is a few dollars shy of $10,000.00. I'm sure they laughed all the way to the bank when i walked out the door. Is this legal? I guess so since i signed it without having any idea. A better question would be, is there any way i can get out of this???
Please help, this is insane.
Thanks for any advice on this...

 

[presutin]

Wow - that is way to excessive!!! What is the interest rate of your financing? I would contact the manager of the dealership and find out if this was a typo or not and demand correction. If he doesn't address the issue, tell him that you will elevate the case to the DA of your city as well as to the local dealers association. Hope this helps!

 

[karmapharmer]

Thank you for the quick response! My finance rate was 11.55%. I put $15,000.00 down on the car, and couldn't figure out why, after paying over $10,000.00 on the car in the last 21 months i still owe more than the car costs!

 

[TimStudiesLaw]

There are too many variables missing to comment yet.

How much was financed?
For how long?
APR - 11.55%
Was there a trade in?
If so, was a balance owed against it, and how much?
What was the price of the vehicle you purchased?
Downpayment amount?
Did you purchase additional warranties or insurance at closing?
If so, what are the charges for these items?

These pieces are required to determine if the finance charge is correct or not.

 

[karmapharmer]

car was $31K, i bought maybe $3K in accessories and warranties, there was no trade in, but i paid $15K down cash. Financed for 6 years (72months) at 11.55%.

 

[presutin]

Karma - the details provided still do not change the fact that the amount is excessively high. Investigate the facts and demand corrections if a mistake was made. Good luck to you!

 

[TimStudiesLaw]

car was $31K, i bought maybe $3K in accessories and warranties, there was no trade in, but i paid $15K down cash. Financed for 6 years (72months) at 11.55%.

Based on these numbers, I calculate your loan amount in the neighborhood of $21,000 - at 11.55% APR for 72 months, the interest charge (if you pay the loan to term) is in the neighborhood of $8,200.