I bought a truck a year and 1/2 ago with somewhat bad credit. I was duped by the dealer because I was told how I needed this and that before they would finance me because of my credit. I got financed with Primus financial for 21% on a 14000.00 truck. My payments are 404.00 monthly. I call for the pay off and it is 13,700.00 I figure I have paid over 7000.00 on this vehicle and my principle has only gone down 300.00 What gives? Im now trying to get rid of it because Im injured and cannot work. I called the primus people and they said that the interest was taken daily. BTW I financed for 4 years. Im having trouble getting rid of this truck, I have good credit now on experian and trans union. Any recomendations? Is there any laws that would prohibit this type of lending? I just need to understand what the hell happened. I know 21% is high, but this is silly... Please help...
Uh I would look for your original contract.....this is what I figured.... After 1 year of payments you should have paid about $2316 in Principal and $2707 in Interest, making your monthly payments on a $14K loan (with nothing down) and a four year loan (48 mos.) $433.52 a month. Find the original document!
Was it 14k plus tax title and license? That might explain why you're still so high. Find the original loan document. You might find that you also purchased some F%I products like gap insurance etc... that might have jacked up your total.
Quigs, Unfortunately I don't think their taking advantage of your situation was illegal. @ $404/month for 48 months, you'll end up paying $5392 in interest, which really constitutes a whopping 38.5% of the purchase price. If the car is not too old, rrates are still low enough that you could refinance & extend your repayment period.
Hi I had a very similiar situation where I bought a car From Primus @ 14% for $14,000 and when I tried entering it into the Quicken program it kept showing lower numbers - I called Quicken technical support and they said something is seriously wrong with their contract. I took the contract to 5 different bank managers in Alaska 4 of them couldn't figure out how Primus got such high figures & then finally one figured it out. They issue what's called a "rule of 78" loan (illegal in Alaska) - they violated the truth in lending laws and I went to the JAGS office (I was in the military)... I was able to give the car back and have them cancel the loan- there was some sort of class action suit I heard but am not sure.
I am no longer in Alaska. Here's more info at: http://www.bankrate.com/brm/news/auto/20010827a.asp Eventhough Alaska is not listed as a state that loan is illegal in (maybe I lucked out) here are the states the site lists and hopefully you live there: Arizona, Michigan, Delaware, Minnesota, Idaho, Nebraska, Iowa, Nevada, Kansas, New Hampshire, Maine, New York, Maryland, Oregon, Massachusetts, South Dakota, Vermont or maybe try a truth in lending loop-hole
