I got Ripped off?

Question:

I bought a Civic LX 2006 for $15500, plus tax and plate, total $17600, i've paid $5000 as down payment, financed $12600 with 60 months to pay monthly. at first, it seems like a sweet deal, but when I got my loan payments, the payment is $325.40, when I calculate my payment on bankrate.com calculator, it doesn't seem right, I was offered 2 options, 1, interest rate 11% monthly and 2. 7% with complete auto insurance, meaning if the car is stolen, I'll be covered, which I never received anything about this. Now, even if I go with 11% interest, the most i should pay is $273.95 per month, with 7% i should've pay $249.60 per month,
what should I do now? The sale receipt of the car is listed $15500 as sale price, do I have any chance to win this in the courtroom?

Answer:
Same thing happened to me last week when I bought my 2004 Saturn Ion 3. And this was prior to them adding the "bumper-to-bumper" warranty (allegedly at no cost). They told me it was that high due to some way the interest is charged annually. Plus, they added nearly $1200 in "dealer fees" and other, unspecified, charges.

All it does is highly motivate me to pay it off as soon as possible -- which they discouraged, saying, "No, take your time."

The original contract that you signed at the point of sale has the figures near the top. Meaning, it should have the sale price, your down amount, the amount financed, your monthly payments and your total payment amount.
Depending who you are financed through, there are also charges for every$1000 borrowed. You need to go back and read the contract. They are long and drawn out, I know. But to purchase a car and only pay 11% is almost unheard of.

they charged you for insurance, you should have got your own :(

First of all, any advice you get here without someone seeing the contract as to the exact details of your loan is worthless. Did you sign for a warranty during the process? Gap insurance? In addition, different states have different laws in regards to disclosure, but before calling a lawyer, go see your F&I guy at the dealership and ask for an explanation. My guess is that the dealership (although you didn't say that you bought it at a dealership, I'm making that assumption) will gladly sit down and explain all the financials to you again. These days, most reputable dealers are not in the business of driving away potential repeat buyers. Go straight to the soucre and get the whole story before you start threatening litigation and such, because once you threaten a lawsuit, most dealers have a policy of stopping all discussions without having their own attorney present.

Your big questions should be as follows:

-what is the total ammount financed? (NOT sale price... meaning what else are you paying for besides the car.)

-how is the interest applied? (compunded how, ect... just make sure it's the same formula as what you are getting at bankrate.com)

-confirm the rate... sometimes dealers "spot" people at a rate that they think the bank will approve, but later the bank changes the rate based on credit and such.

Basically, make sure you have all the info, and save the attorney sturff until a later date if no one answers your questions or you find real proof of fraud or unfair business practices.

I got Ripped off?

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