Not sure which company has done me more wrong. I purchased a car from carmax and was approved for a loan through Wachovia. The interest rate was 9.4 %. For $17,000. I specifically asked the sales person if I paid earlier will I still be required to pay the full amount of interest. He replied "no". Also there was a $3.95 per day charge which the sales rep Jay said "if you are late they charge $3.95 per day"
Come to find out, the interest is a simple fixed rate and regardless of how fast i pay off the loan i was still charged for the full interest amount. The $3.95 charge is a daily loan charge for as long as i have the loan.
So on this $17,000 loan I am being charged 9.4 fixed = $1598 (which was fine) plus $3.95 a day for the 6 year loan = $8650.50. So after all the fees $10,248.50 of additional charges for a $17,000 loan.
4 months later I called wachovia because I realized the balance was as reduced as expected and discovered all this, to get out of this nightmare agreement, i had to dig into the savings and pay them off in full. Thank god, i had the opportunity to do that. Wachovia said "i should have read the contract" and i agree with them, but when you purchase a home or car, you are signing so many documents, i would take a full day to read every line of every paper. The company selling you the vehicle should fill you in on important major points like that.
That is why no one trusts car dealers. So should I feel more taken advantage from Car Max for not telling me or from Wachovia for charging these outrageous rates.
0 comments