the Cost of Auto Loans

I bought a used car from a local used car dealer ship. The total cost of the loan was $10,000. I did not put any money down. I got a 9% interest rate.

This was my first time buying a vehicle without my parents there and I basically feel like I was bullied. I went in just to take a look and wanted to spend around $6,000. The dealer talked me into test driving a much more expensive car. I did like it but it was out of my budget and told him so. He said we should check on what kind of financing I could get, just for fun. I got approved for a $10,000 loan. He did not tell me what the interest rate was! I didn't think to ask, which was a huge mistake on my part. He told me what the monthly payments would be and said that I wouldn't have to put any money down. I thought it was a great deal and ended up signing right then and there. It only took me about 5 minutes to realize I'd made a huge mistake. I looked at the contract and realized it was for 9%. I have decent credit and definitely could have gotten a significantly lower interest rate.

Shop around, shop around, shop around! Do not let a seller talk you into anything. Always leave and think about what you've been offered for a few days. If it really is a good deal the seller will have no problem with this.