My husband applied for a $14,000 auto loan from B of A and he was approved for 4.09 % on a 36 month loan. Over all, the loan will be $16,000. We are buying from a private seller and we’re about half way through the transaction.
I’m just wondering about the $2,000 extra we’re paying. Does that sound right? I’m just a little confused as to why it’s coming out to be $2,000 more. What about interest? is that what we’re paying with that money or are we paying a monthly interests on top of the $2,000?
I am aware that the bank charges transaction fees ($200 for the tittle transfer) but still, $1,800 seems like a little too much just for transaction fees.
PooPooLaTrash and Cave,
Thank you so much for your response.
PooPooLaTrash, No, my husband did not purchase any extras.
He’s going to call the bank today after work to ask for a breakdown on the $2,000. We should also be receiving the loan agreement forms either today or tomorrow.
Thank you again for your response. =)
The loan documentation fee is usually $200, taxes, title and registration are extra but $2000 sounds steep for all of that. Ask BofA to fax you a copy of your loan agreement or ask them directly for a breakdown of the $2000.
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To the person below me, no way would $2000 be the cost of a $14000 loan at that interest rate and loan term. In fact, it should be less than $1000. Something is wrong somewhere. Did your husband purchase gap insurance or some other type of “extra”?
If $14000 is the amount financed at 4% over 3 years, then $16000 may be the total of all 36 monthly payments including interest. Your loan disclosure forms will tell you.
I can’t follow you. What is the selling price? That’s the amount you’re paying the third party, that’s the number you need to cover.