I am buying my first car but did i handle this situation properly?

Question

okay i have no experience with buying cars so my parents took me to look for one and i found one that i liked. yesterday i went to get the paper work done and the car salesman told me to come with him while my parents looked for cars and my parents said fine. i went back with him and we started filling out our basic information for the legal work. my dad came in to check on me and it was fine. when it come to signing papers the manager came and took me to another room and soon after my parents joined me. while he discussed the financing for the car which was a 7900 dollar vehicle. with financing it came up to 10 thousand dollars. i knew something was wrong but i was unsure so i didnt say anything. the manager was speaking to my father mostly and i knew something was up with the numbers and so did my mom. when we left to have my aunt cosign my mom yelled at me for not speaking up and going into the room without them. did i do anything wrong worth getting yelled at?

Answer 1

that is the stupid thing about financing.. depending on how long you finance it, it can greatly affect the actual cost of what you finance overall.

sounds like your Interest Rate is extremely high, you should of waited and saved more for the down payment which will lower your monthly payments and your total cost after financing

Answer 2

its gona be a tough life if you dont stand up for yourself...if things don't feel right its usually because they and NOT right....i don't know about the yelling but u should never be alone with those sharks...my wife fought for 2 hours with the salesman...they insisted she pay for dealer options she didnt want and fees she didnt agree to that were on the contract...she won but was exausted...its better to walk out and go back the next day...they usually realize you arnt taking c**p and don't want to lose the sale.

Answer 3

Sounds like you did just fine!

10,000 sounds about right.  Was the sales tax and license fees included in the car loan?

8% sales tax would have added $632 to the 7900.

  The rest is interest.

How long was the financing for? The longer the financing, the more you will pay overall.

7900+632= 8532 at 6% interest would be roughly $500 a year interest.  This interest amount would decline every year.

A 72 month loan would be over $10,000 total cost.  A 60 month loan, depending on the interest rate, could be over $10,000 total also.

In the future:

If you are unsure of something, and you are signing your name to it, you should always ask.  The salesperson, is there to work for you, let them earn their money.  If you have any questions, no matter how silly or trivial it may seem always ask.  If they can't explain what they are doing to your satisfaction then don't sign.

Answer 4

Dont feel bad, Buying a your first vehicle can be overwhelming for anyone, and for some people it doesnt change. If the paperwork has not been finalized then ask for a full disclosure agreement. This is a break down of what you are spending mony on, for example,

Car- $7900

Doc Fee.  $ X amount

Reg. Fee- $ X amount

Int. Rate-   X% yearly

Total Financed- $X amount.

Hoefully it will be more detailed but thats the short form of it. The 7900 dollers for the car is probably before taxes and applicable fee's ,and before interest is put on to it, its not fun realizing that your $7900 car just turned into 10 grand but really if  $1100 is all that got added on, your honestly doing pretty good when you factor taxes and everything. Ask for that full disclosure agreement, have the sales man or finance office go over the contract with you and your parents VERY CLEARLY before you sign, and if you have a question ask it, and then ask another one if his answer isnt good enough. If he is reputable he will have no problem takeing the time to explain everything in detail and make sure you understand, If he is a slime ball, and yes even I will state they are out there, he will try to rush things on you and get you out the door before you can rethink things. Good Luck, if you have anymore questions dont hesitate to ask.

Answer 5

When you finance a $7900 car, the total amount you'll end up paying by the end of the loan will be much more than $7900. That's how financing works. The convenience of having a bank or loan company lend you money for the time you need it will cost you extra money. Also consider any taxes and fees that might have been added. Here's a calculator that you can plug your numbers into and find out if the dealer cheated you or not:

http://www.autoloancalculatoronline.com

My guess is that you were not cheated and that you will find the numbers actually work out correctly.

Good luck.