Interest rates on truck payment...40%

I was thinking about that. I thought vehicle loans amortized like mortgages. If they do, I don't see how he can only be paying $17k in interest. Unless it's a very short-term loan.

 

What I got he is financing 45K, 17K interest. Lot less than 40% interest @ 1800/month payments. He just never mentioned the term of the loan.

 

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Yeah, I don't get it. I don't think he really knows. 40% of $45k is $18k. So this is close enough to the $17k he says he's paying. But that would be SIMPLE interest, no? If the loan is amortized like a mortgage, then the total interest paid should be more than $17k. Whatever. It's not my problem. But I feel for the guy. Is 40% even LEGAL?

 

Now THAT, is funny!

 

You know what, I think he is confusing the total finance charges over the course of the loan with the interest RATE. He is taking $17k and dividing by the loan amount to arrive at his 40% "interest rate". But that is not the actual rate.

 

Depends on type of loan. Iirc certain types of direct loan in ohio dont have a cap and can be as high as 99% legally. I vaugely remimber what me and my lawyer went over when i first was getting into o/o to avoid getting screwed by some legal tricks.

As for the math. Either he lied about 40%, is being charged a flat 40% of the loan as intrest which is posible. or he doesnt know how to caculate intrest and just assumes that 40% apr = 40% of the total loan value rather then the ongoing cost.

We could really use some clarification on this OP

 

I’am gona just tell you straight up…. You just took a huge hosing I mean huge 1st off you bought a truck from probably the worst truck sales place in the USA .. 2# with out even asking or knowing what you bought I would be willing to bet it is a shinny big POS . Their famous for throwing a avg at best paint job on wore out trucks and hoping guys like you come along and fall in love with the shiny paint and buy it at a over priced price. they then hook you up with a legal loan shark and give you vague info about the loan and keep romancing you until you sign the death certificate oops sorry I mean the finance contract .. Trust me you got F’ed their blow by test standards are next to none they simple told you what you want hear. You already wore out a set of steer tires in less than 30 days what’s that tell ya you ? . I would be willing to bet your gona need a lot more than a alignment. More than likely the truck has had front end damage. You might as well plan on rebuilding the motor soon also , but I bet you don’t have the funds to do it you already said you don’t have a place suitable to work on a truck and you seem to think you are fully capable of working on the truck …… I’am calling BS cause if you were you would of gone over that truck with a fine tooth comb before you bought the truck and most likely would of come up with a endless list of things wrong with it and realized it was a painted up POS that’s how mechanically inclined people do things. Ohio Truck Sales does NOT sell good quality used trucks.. How in the hell does anybody buy a truck without knowing exactly what your monthly payment is before you sign the papers .. Don’t answer that cause obviously you did !!! You dug a hole so deep you will never see daylight again .. I wish you the best of luck and look fwd to your numerous threads in the mechanics forum here might even see your thread in the Report a bad company forum

 

Now that's what I call "tough love".

 

He might as well hear the truth…lol he is the poster child for … what not to do when buying a truck