CitiFinancial Auto Complaint - Don't make my mistake - 2008 Dodge Charger

Posted by FlShopper on 2010-09-01:

Wow, you're really in a pickle with that car.
Auto dealers will continue to sell cars at ridiculous rates as long as there are people willing to buy cars at ridiculous rates.
What did they tell you when you said that they could either lower the payments or come to get the car? Are they coming to repo it?
I hope that this turns out ok for you...

Posted by skelly39 on 2010-09-01:

I've done what you've done so I know how you feel, but the payments should start going more to the principal than the interest at this point. I know you are upside down right now but don't ruin your credit over it. If you can keep up the payments, just pay it off. It will look better on your credit record, and the next time you buy a car, you can qualify for a low rate.

Posted by justcuz on 2010-09-01:

Have you looked into refinancing with the dealership where you bought the car? Or better yet, if you have a credit union talk to them. Obviously when you bought the car you either had poor credit or no credit, hence the high interest rate, but if you've had a good payment history and otherwise good credit since then, you shouldn't have a problem getting someone to refi you. Letting it go is only going to cause you more damage in the long run. Good luck!

Posted by Stew on 2010-09-01:

Something's really wrong with this picture. A 38,000 loan at 18% interest would only incur a max of $570 finance charge for any given month. Yet the OP states the payments are $900 and only $100 is going towards the principal. If was me I'd be all over CitiFinancial's math on this one.

From the information given, $38,000 loan at 18% with a $900 payment, I'm assuming the loan term was 66 or 72 months. I'm also assuming 30 payments have been made. If that's the case the current outstanding balance should be somewhere around $26,000. If it's not then again I'd be all over CityFinancial to explain why not.

You learned a valuable albeit expensive lesson. I wish you well.

Posted by rockfishing on 2010-09-01:

As Skelly said you've paid all the interest at this point so your principal should start increasing. Your best bet is to use every extra penny you have to pay it off. Get another job if you have to. Walking away will only mean more high interest rates for the long term. My daughter's tuition and dorm cost 38K for this year. Just look at this as an expensive learning experience.

Posted by aboggs on 2010-09-02:

Can't refi, because it is well over the 120% of the value that most places will finance. I'm looking into chap 13. I get to keep the car and still pay for it through the trustee. It still values for 26000, so that's what I'll be paying through the bankruptcy. Citifinancial is still making money on the loan, so I don't feel so bad. Definitely a lesson learned. I'm older now and realize material things do not define you. I guess have kids will do that to you.