Why do I still owe more money than expected for a car loan?

Question

Had a car accident. Car insurance paid off a portion of the total loss. Gap ins.paid a smaller portion than expected. I think it stems from the car dealership . I brought an extended warranty that was wrapped into the financing agreement. I decided to get a lesser warranty later that cost $1400. The finance manager simply deducted $1100 from the $2500 warranty and sent that to the bank as a payment. I then ended up cancelling that ext. warranty as well and the dealer sent ME a check for $1146.

Now I'm thinking at the end of the day after all payoffs to the bank that the balance I should owe is of course the $1146 that was given to ME and not the bank. Why is my loan still over $1800!?! I learned also that the finance manager was NOT supposed to just deducted money from an already existing finance agreement in order to suffice the new extended warranty. They were to in fact tell me to either pay the $1400 warranty up front, or to I guess create a new finance agreement to suffic

Answer 1

It seems like you warranty was prorated on a daily basis.  Within the time frame that you've purchased the extended warranty to the time you canceled it, you were charged for that time period.  All car dealerships add the warranty costs onto the loan when you buy the car.  This is a given face that ALL of them do that.  You could of stated that you wanted it paid differently, but you didn't.  Plus, I don't think they can even separate the costs.  Whatever packages you've purchased belonged to the same car.  On the other hand, the dealer sent you the check for $1,146 because the car is under your name after the fact that you've already applied for a car loan.  They can't credit you that amount on YOUR loan, so they sent the check to you.  At that time, you could of used the check to pay off the car.  I believe the reason why you still owe $1,800 is because of interest.  Interest is calculated on a daily basis.  Pay off the debt now because it accrues more interest.

Answer 2

It's probably add'l interest on the loan. It's called per-diem which simply means every day past the due date, you are charged more interest.

Answer 3

The answer may vary by person.It would be a good idea to hear some of them and try to choose the best one.Here is a good one.http://car-insurance.online-helpers.info...

Answer 4

It can really save you time to just get a car loan price online to verify what the going rates are.  You might be pleasantly happy.  Also if your credit is not so great, a lot of them are more able to work with people.



What I usually tell folks is that an online quote at http://auto.lowratetoday.com is what I would do.