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Harold
Beyond doubt, you have a terrible finance rate and I think you paid too much for the car. My guess would be about 9500 was all it was worth when you bought it 22 months ago.
What can you do about it? I would check with legal aid and see if the contract is legit.
Erin
You shouldn’t take a loan (for future reference), Car, House, Credit card, unless you understand how interest works.
First, your payments are $300. You have made payments for 10 month, that is $3000. How do you get $6600?
Here is how it works. You borrowed $11000 ($13000-$2000)
Lets say your interest is 12% for simplicity. That means you are paying 1% per month (12% divided by 12 months) or $110 interest the first month (1% of 11000). Your payment is $300, so $300-$110 is $190 paid on your loan’s principle. Your loan would now be $11000-$190=$10810.
Month 2 interest would be 108.10, So you payment to the loan is 191.9 leaving your balance at 10618.10
Month Balance___ Interest__ Payed (on Principle)
Nov__ $11000.00__$110.00_ $190.00
Dec__$10810.00__$108.10__$191.90
Jan__$10618.10__$106.18__$193.82
Feb__$10424.28__$104.24__$195.76
Mar__$10228.52__$102.29__$197.71
Apr__$10030.81__$100.31__$199.69
May__$9831.12___$98.31__$201.69
Jun___$9629.43___$96.29__$203.71
Jul___$9425.72___$94.26__$205.74
Aug__$9219.98___$92.20__$207.80
Sep___$9012.18
So basically,
1) you take your interest rate and divide it by 12.
2) Divide it by 100
3) Multiply your balance times that number (that is the interest payment for that month (the amount you pay them for lending you the money)).
4) Subtract that from your monthly payment (that is what is paid on your loan).
5) Take that amount and subtract from your principle. (This is you balance for the next month.
6) For the next month, go back to step 3 and repeat.
Additional information…
Use your numbers and you can see you are probably ok, but you have a high interest rate. The interest rate is what you are telling the lender you are willing to pay to borrow money. If you take the loan, you are not being ripped off. You need to know what you are buying. There are jerks that will take advantage of you, so you need to be educated.
In the link below, you can calculate you loan.
Helen
The car dealer and loan co. both prob. ripped you by adding hidden charges.. Get a copy of all the final documents.Both sale and finance.–look them over carefully to see whats up.–but the only option you may have is to refinance..I’m sorry this happened to you..Now you know these type co`,s are in general regarded dishonest…You need to get all the numbers together. Then come back if you want some real advice.