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Irwin Law
Irwin Law, Attorney
Category: Legal
Satisfied Customers: 7092
Experience:  Lawyer & Real Estate Broker, 30+ years, foreclosure, land contracts, inheritance, probate.
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I bought a car that had a sell price of $21,000. Paid

Customer Question

I bought a car that had a sell price of $21,000. Paid $13,000 down. After reading the contract real good, I realized that the amount financed, was $14,000. My credit cost me 7.30%. I bought the car in March, of 2015 this year. The payments are scheduled up until 4/13/2021. Of course I'm paying double payments, and sometimes 5x the monthly payments. I'm up to May of 2016 according to my receipts. My question is, If I pay off the balance early, will I be given back the estimated total finance charges
Submitted: 1 year ago.
Category: Legal
Expert:  Irwin Law replied 1 year ago.

I don't understand how that contract could be correct. The amount financed should have been no more than the $8000 balance unless you financed something besides the car. did you pay off an old car? Financing that balance at the 7.3% for 6 years would be a monthly payment of under $140. The total finance charge for the entire 72 months should be around $2000. I'm using mortgage amortization tables. Making multiple payments in advance will pay off the contract early rather than get you a refund. You might visit a consumer law specialist and/or your bank to see if there would be a benefit to refinancing the loan and paying it off in full now.