I didn't realize our financing can be so complicated of viewers sent this question dear sounded what the pickup by a dealer I thought that when it is only one monthly amortization would be lower but he turned out to be paid in interest the agent did not explain to us property the details of the sale and want to get rid of this high interest do you have any advice June June said the unit price of the pickup is 1.334 million passes he paid a down payment of 189,000 based on long-term he needs to be 26,600 per month for 60 months under the terms of his loan will reach 1.596 passes in the car cost him an additional 451,000 vessels because of the low June also told me that he just realized the numbers when he documents the bank gave him when he was about to be the first monthly installment June and his wife are considering prepaying the loan with the banks that they are not allowed to prepare broken at 7000 or so want instead the advice my wife that after one year of being a monthly amortization 26,000 they will give us a lower interest rate if we have enough money to pay the remaining amount he said to go straight to the heart of the matter June I will have to tell you an awful truth you are stuck the only way to get out of this would be to pay off the loan amount in full after your monthly installments asked the banker suggested getting another bat to take out the snow will add to your cost and would be cheating by this time it would be considered a secondhand car and will have to ask the other best place the car for example and that means you have to be a priest of peace among other things I know how painful it will be to swallow this truth I spoke with authoring financial adviser Efrain Cruz and he said the effective interest rate this deal was 40% this much higher than the industry standard 10% if you go straight to that know if that's you simple interest rate they should have been only 7.8% said some bankers said with additional processing fees and charges gimmick you could be paying as much as 80% effective interest rate if you go card leaders re-validated that's when went around five or dealership and crunched the numbers sources explain what card you normally do the so-called packages just scary effective interest rate of around 17% to 18% then dealer gets you to sign the deed of assignment which gives them the right to sell more to the back let's say 12% effective interest rate the dealer by this time raked off profits from the car, insurance says processing from higher than usual effective interest rate this might be the reason you were asked to prepay only after a year that we would need effective interest rate was higher than you thought was lessons or if you need a car loan stay away from in-house financing the air can put a lot more expensive this issue is fast becoming a common applications for car loans arising because of the grab car phenomena its convenience really that will wreak havoc on your finances crew set alert computer effective interest rate as well that is the only way to cut through the marketing gimmicks and compare deals this gets easy with many websites and apps that provide loan calculators Efrain Cruz develop llama and out the computer effective interest rate quickly and effectively so that you don't even have to know the equation just input data and hit compete in one instance crew said he knew what card leaders charging them as much a 17% effective interest rate on the loan even though it was not disclosed to him when faced with any kind of financial transaction never sign on the dotted line if you don't understand the terms be careful when the car dealer starts talking about I'd only be so deceptive and can make interest rates will really be aware as well that there are many hidden charges for car loan proposals like processing mortgage these can get as high as 2000 vessels and increase your interest rate on contentious issue is the prepayment clause was financing companies do not allow prepayment even after the unity that consumers should be allowed prepaying time and any amounts article 137 of the public at 7394 states that the person credited to me prepay only part time and without any penalties the unpaid balance of any consumer transaction today I know only one batch that allows rebates for payment by contrast most banks charge penalties because it makes sense for Levine savings bank senior vice president just installed you explain the emerging niche market for this feature workers W's overpaid I think 500,000 guests to the battle for the car loan in one go and effectively puts the money in escrow and that's the money earned around 5% as rebate this is then used to reduce the monthly amortization the borrower this solves a lot of the problems of absentee breadwinners was budget for amortization left with their spouses in the wisdom for other things the studio said the bath notice that there is an increasing number of consumers would like to reduce the known exposures as their income improves this feature addresses that to June and all consumer loan borrowers out there know the law and know your rights insists to be allowed to prepay without any penalty before the year is over if you have the extra cash you may not be allowed to beeping small amounts like 7000 vessels monthly because that messes with a finding course of the bat but the bank should tell you your appeal from our end that should defend on the princely father less what you have beta for know also that most banks or scripting should by calling prepayment penalties and other needs like processing or service so choose your back like car dealers and back please stop with the smokes and errors in this day and age of networks and social media customer brings you more, than a customer you were able to hit with a raw deal.
