Chase Manhattan Bank Complaint - Chase Auto Loan Interest Rip-off
In August of 2004, I puchased a new car. I put $5000.00 down, and financed 47,676.58 through Chase Bank for 84 months at 8.19% interest. I did this because I knew that my goal was to pay the loan off early. I paid my payments of $747.59 on time without a single late payment for 62 months. I paid the vehicle off on payment #63. after doing some calculations off of my payment history, I found that I was only $1500.00 away from paying the full contracted 84 months ammount of the loan with 21 months residual. I called Chase about this, and was told that was normal calcuation of interest. I paid off a auto loan for another vehicle 2 yrs earlier with substansial savings in interest payments because of paying it off early. Obviuosly the same rules don't apply to Chase Bank. Turns out that during the early payments of the loan, Chase applied $200-300.00 of the monthly payments to interest, not principal. This in my opinion is done to get their interest early in the life of the loan, rather that divided in equal parts for the 84 months. The total interest paid for this vehicle was $17,535.43. Add that to the amount financed and it comes to $65212.01. The total payments per contract was 62797.56. Which means not only was I not getting any savings for paying it off early, But that I also was overcharged another $2414.45. PLEASe, please, PLEASE, Do not Finance an auto loan with Chase Bank. Not only did they lose a future auto loan customer, they also lost a bank client. I'm banking elsewhere.