I have been making payments to SeaWest for almost two years. My opening balance was almost $12000. I was in dire need of a vehicle when I made the purchase and never inquired on the interest rate, at the dealership I was only told that it would fluctuate, but would start high and get lower as I paid the note.
In February of this year I sent for a payment report on my account. It showed payments made, money applied to principle, and money applied to interest. I was shocked to find that after two years I still owed nearly $8500 for two more years. The most money ever applied to the principle was about $300 (of $400 payments) twice. I've made over 12 payments where interest deducted was $200 or more.
As I read through the rest of the computer printout I saw my interest rate... 22.9%. Now, I know that compounded interest works differently than figuring the interest of a lump sum. But shouldn't I have payed more than $3500 on principle by now? At this rate, I'll never pay it off!!! 23% of $12000 is $2760.
At $400 for 4 years, I will have payed $19,200 for my truck. Someone please explain this to me!!!
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