Question

Question.
Got a 2017 Focus ST In November. I got financed with an interest rate of 8.99%
Now I made my first payment earlier this month and I noticed that more than HALF of the payment went to Interest and the rest of the Principal. I called the Bank and they told me they are charging me 8.99 a day?? The lady didn't really explain it to me all that well but she said it will go down a bit next month. I did the math and ill still be paying more than half for interest. What gives?? Any advice??

you got fucked.

How the fuck do you expect anyone to be able to tell you anything if you don't give us all of the numbers? Interest rate alone doesn't mean shit.
>Total amount of loan
>term of loan
>payment frequency
>interest rate
>interest compounding frequency
>number of 'interest free' months, if any
>amount of first payment
Also, this: Should have read the fine print.

>ford dealers
Not even once

Shit.
Alright so Total amount of loan came out to 24,575
72 months
Payment due on the 2nd of each month
Annual Percentage Rate is 8.99%
The first payment was 444.51 but gave an extra 56 to go into principal.

I mean look at this.. I just need to make sense of this really.

Wait, so you didn’t make a payment in December?

wew lad

Nope. First payment due 45 days from purchase date. Came out to the 2nd of this month.

heh
GOTCHA BITCH!

someone please workout how much this cunt is going to pay for his car so i can kek about it.

>this motherfucker is paying $50,000 for a fucking Focus ST
holy shit my sides are gone

8.99% is really shitty, even with no credit. Make some principal only payments when you can in between regular payments. Call the bank in 6 to 9 months to see if you can refinance.

But really at that rate you should pay off the loan as quickly as you can or else you'll have negative equity in the car in a year.

>not knowing how interest amortization works.
OP, this is completely normal. You're going to pay about 32k for this car over 6 years because of the shit interest rate you got. Google an amortization calculator and it will tell you exactly how much you'll be paying per month in interest. As the loan matures, you'll pay less and less each month in interest.

...

I don't get how people spend tens of thousands of dollars without fully understanding how it works

Makes a lot more sense now. Thanks, user.
Planning on refinancing as soon as I can but for now ill just keep doing what I'm doing.

There is no prerequisite of intelligence to have or acquire money.

>car has been in production since 2010
>facelift in 2015
>lots of used cars around
>still insist on ordering a brand new car despite not being able to afford it
>or actually understanding how loans work

burgers gonna burger

Have you been to a dealership before? There's a reason they make a living selling cars. They're typically very good at what they do, sales. They're also very good at controlling and directing the conversation and sale to be about monthly payments and nothing else. I truly feel bad for the young and/or ignorant. Sometimes I'll even get caught off guard by the really good salesmen. I never buy, but still it frightens me how good some of them are at turning "i'm just looking" into a sale that day.

>9% interest
Kys faggot.

>8.99%
I refuse to believe this isn't bait. You can't have credit that bad, I got an ST for 0%

>buying a new car

>interest rate of 8.99%
How bad is your fucking credit?

My ST's financing is at like 2 or something and i could have gotten 0 if i didn't take the 1k bonus cash or whatever

Are all amerishart this retarded or is just Veeky Forums that has all of them?
When you finance anything the interest are pre-evaluated onto the total you've to pay. You pay the interest first then you start paying for the principal.
Also
>9% interest rate

Christ, why not buy a used one and save ten grand?

Surely you've heard the stories of people getting interest rates as high as 23.99%, right? 8.99% doesn't surprise me. That said, I would never accept anything above 3%. It isn't worth it at that point.

>leasing a car

plenty of evidence here that Veeky Forums has never been to a car dealer and probably hasn't even established credit..

I've got a coworker financing a '11 honda @ 33% because they had zero credit

The dealer I bought my bmw from wanted to finance me at 27%, I got a bank loan @ 4% instead.

Read it again, pretty sure he bought it, not leased.

>I got financed

lmao

The bank wants to make sure it gets its interest first. so the longer you make your payments the less you pay towards interest. like your last payment will probably have like $13 of your payment go to interest and the rest to principal and then you're done.

9% interest holy fuck thats credit card tier

work in sales and finance at a dealership can confirm

>4,575
total would be 31ish actually

depending on your credit not sure why you got slapped with 8.99 but the actual rate was probably lower but the dealer can sell you a higher rate and get a kickback from the bank

>not getting a loan through a credit union
You dun goofed son

yeah you aren't fucked man. 8.99 is an okay interest rate. what I would do, is I would pay ON TIME for 6 months, then I would refinance for a shorter term. Your payments will probably go up a bit, but in the long run you'll save money. Read what that other user posted about how loan payments are structured. Everyone in this thread is either stupid or trying to fuck with you. But now you know in the future, 72 months is too long. how does a whole thread of car "enthusiasts" know so little about car loans? ya'll really do drive rust bucket shitboxes lmao. if you dont default you'll end up better off for having this car, it will help you build credit and in the future when you go to buy another vehicle or a home you'll have a better chance at paying less interest.

Financing through a credit union is so much better.
They usually base their interest flatly on credit score. Then term on age of car.

I didnt use the pluses of buying a new car with that. I went and got a 99 cobra with a 12 month term for 3.14% apr.
After 11 months I only regret not getting the cobra with the bigger cupholders.

calling an interest rate bad is not dumb as many have stated anything over 5% is not worth it. Those who have shit credit have themselves to blame it on

a lot of credit unions wont even touch a car over 10 years old, if they do they will "finance" it through a personal loan with much higher interest rates and stricter rules than a regular auto loan.

Damn thats a shame. The lender dude did say the 2010 mustang gt was gonna be a better buy.
But that wouldve been obvious from his perspective.

After I bought the car I went up and shook his hand after I got back into town. He seemed like a cool guy and he liked the car. I even took him for a ride in it.
Its cozy over here in small town america. I feel bad for all you guys getting jewed.

For someone without great credit, a smaller loan with 7-9 percent isn't too bad. Something like 10k could be paid off relatively quickly and build credit history. I wouldn't finance a 25k new car for that though.

You're retarded if you think that shit you posted is normal. 27% is the realm of grocery store credit cards, 33% is fucking absurd.

4% is even really high for a used, you should be able to get 3 or 3.5 easily from a bank

You're arguing fractions of percents as high or low.
While some guys are having 3z or 10x your entire apr.
Oh I'm laffin. Some people really should understand the jewish tricks.

well I'm not gonna whip some multithousand dollar amount of money from my account to pay for a car. Thats not financially wise

8.99 is not okay

its pretty bad