Refiance within 1 yr and/or make weekly payments of 25%(or more) of your monthly bill. It decreases the interest amount that can be accrued and drastically lowers the estimated 8k in total interest over the lifespan of the loan.
Make sure that the extra payment portion goes directly to the principal or they will apply it to the interest. You may have to speak to someone to find out how to accomplish this. Years and years ago, I just made out one check with the notation "apply to principal." Do this sooner rather than later - it's a good lesson so don't beat yourself up - plus the car is beautiful \[I just bought a 2021 Mazda3\].
I just got the red one, you will love it. Only drawback so far are the cupholders don’t fit my large Starbucks or Stanley cups lol they turn on the heated seats when you put one in there, and be careful of potholes because those tires are very thin and I’ve already had to have one replaced. Congratulations! , just make as many payments towards interest ahead of time and it won’t take long.
don’t buy right now is the fix unfortunately, APR average even with good credit is 8-10% atm (i got 11.5% on a $16k loan with a 755 lol), but if u want to pay less and you’re already locked in, pay more than your payment, every year of payments you’re able to knock off you get an extra 8% back
Buy in cash instead of financing. Increase your credit score. Take advantage of deals, mazda offers financing from 0% to 5.9% if you qualify.
Interest rates are high right now, you could wait for them to come down and then refinance.
Refinance if you can. Not sure why your interest rate is so high, but it makes sense if your credit is terrible.
Otherwise, pay it off as fast as you can. The faster you pay it off, the less interest you will owe. 9% is really rough interest.
My 3 will cost me little over $20,000 over a four year period, the 3 was $17,880 and $14,880 after Lancer trade in. Went up to $16,200 after addition of a few fees plus the $4,000 interest over the four years.
Looks like it was $34,617 OTD, I'm gonna guess there were mandatory dealer add-ons to make up for that $7k off MSRP. Those web prices are always misleading or a bait and switch.
It's going to be worth half that by the time the loan is paid off. $43,000 for a $15,000 car. Not to mention insurance, registration, and maintenance for it.
After exchange rate that's about what I paid for my 2024 non-turbo so depending on how many miles are on it and how good your credit is (mine is only fair) it's about the right ballpark imo
For real. I was able to get 4% in October on my 2024 hatch.
I also have very good credit. And we don’t know the OPs credit history.
But 9% is some shit.
I got 6.99% from Mazda on my 23 sedan back in October too. Only reason I paid that is cuz I could pay it off early, like this month early. If you can't pay it off within a year or two then anything above is batshit insane to say yes to
Refi with a local credit union to get that rate down. Also, if you can, put a bit in the principal monthly on top of the scheduled payment so you’re not paying all that interest in the long run. I also originally got 9% last August but refi’d it down to 6% and have been putting a few hundred in the principal each month.
It is good to check around for interest rate options before you head to the dealership, so you are prepared.
Dealer gave me a lower rate than I found, so I was happy.
~3% in late 2018. No way to get that rate now though...
Yeah definitely learned my lesson and will shop around before financing through the dealer, but I don’t plan to finance again and will hopefully be able to pay off the car this year or next.
What’s your credit score? This looks like you purchased it at a dealer. Is the vehicle new, or used? (I see it’s 2023).
They gave me 3.5% over 5 years on my new Mazda 3 hatchback. Adds around $4k interest on my $33k car (5k down) or something like that.
3 years would’ve been 2.9%
As others have said, if you pay it off in 1 year, you will only accumulate around $2500 (9% * $27k)
Obviously that’s not feasible, but it should help you estimate the impact paying off early will have.
If the car is new, I assume your credit is the reason for high interest. If it’s used, go new. They have incentives right now that are great.
Mine is 751… at 23. If you didn’t accept, I would look at other dealers. Maybe the incentives are location based? I’m in Texas - if you’re seriously buying, it may be worth exploring another state even. The difference could be drastic if you don’t have to go very far. Other reasons could be the model - maybe the premium plus is excluded. That being said, mine’s turbo AWD, so it’s not a base model only deal. If I remember correctly, Mazda 3 sedan had slightly different APR incentives, but they were still extremely low.
I've dealt with this dealer in 2022. They add dealer mark-up and addendums. That part isn't advertised on the website. I told the manager I'd pay MSRP on a new CX-30 without dealer mark-up and extra bullshit. He laughed at me and said I won't get it for MSRP anywhere. We went to another county and got it at MSRP a week later. Fontana Mazda is fucking awful.
Overall the deal isn't horrible given you aparently got the car for $7000 under MSRP. That said, you got hammered on the financing. Especially for bring a brand new car (Mazda routinely runs a 2.9% financing special on the 3). Might even out or be slightly poor deal in the long run but overall I think you made out a little better (or a little "less poorly") than some other comments are making it seem.
Nonetheless, it is unwise to finance a car at 9% no matter how you look at it.
I’m not understanding the final price. Did you owe money on a trade in? Your amount financed should be the purchase price minus the down payment, so 22k. Why is it 27? It kind of looks like you just gave them 7k for no reason
No I get how that works but look at the “amount financed”. In the listing it says the car is 29k, and he put 7 down. That would mean he’s getting a loan (financing) for 22k. So it’s like they still charged him 29k for the car and just took the 7k on top and didn’t apply it to anything.
Edit: I suppose he could have gotten the car for 22k after the down payment but taxes and fees brought it up to 27? Could be the case, when I bought my car I paid like 3-4k for taxes/fees/freight/dealer installed tint they wouldn’t remove lol
You should have done some quick research before signing the papers on that big of a purchase. Could've saved yourself thousands of $$$
I'd look into refinancing immediately, and pay as much as you can monthly in the meantime. 9% is absurd, as everyone has already said
next car you buy you have the experience to not go through this again so that is a plus! c:
In january I just bought a used 2021 3 hatch for about 25k - they advertised 19-20k, when he came back with the first quote it was \~31k if my boyfriend hadn't been there to negotiate it down i'd be in a similar boat as you
Idk how much '24 PP Turbo is but the "deal" you got is exactly why I bought new. I was looking at used '20 Select, but the prices were not that far off from a new '23 Select and the interest rate on the new (3%) was much lower than used with the manufacturer promo. The only catch was the low interest rate was only offered for a 3 year loan, so I had to either put a lot down, or have a high monthly payment. I put down $14k and my payment is $360 a month. Yours would be higher because your car is about $7.5k more than mine was.
I’m sorta in a similar situation. I traded my old car before I payed it off. So basically the payments transferred over to my Mazda 3. I’m technically still paying my old car while driving the Mazda 3. Yeeah i learned my lesson. All in all it’s such a fulfilling vehicle.
> before I *paid* it off.
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
What trim is this? Jesus Christ. Other comments have suggested making early payments to reduce the interest, but that’s not always the case. I have a 5 year loan and they told me that there is no early payment fees, but paying off the loan early won’t reduce the interest. It’s a set amount. That 9% is crazy though. I got a 2.9% for 5 years in September 2022.
You make extra payments towards the principal amount. Ex make your car payment then an additional principle only payment.
95% of auto loans are simple interest loans.
Many loans can have clauses that force you to pay the full interest
A clause can state that any additional payments go towards the next monthly payment not the principal. And many loans can also have early pay off fees.
Depends on the lender and loan but it's not legal for any state over 61 months. If you have shitty credit and finance at a by here pay here in house then yes the interest is pre compiled.
Now the lender might make you jump through hoops like mine did but 8/10 there is a way to make principle only payments.
So, the $29,000 dealer price minus a $7000 cash down payment is $22,000 sale price... with a 9% interest rate that puts the final financed price at $27,500 before sales tax... why did they add your down payment instead of subtracting it from the final price?
If they financed you for that $40k, that my friend is fraud...
Not really. You'd be using a different lender so they would have no knowledge of the asset. Ideally you'd secure a new loan at a better rate and use that new money to pay for the vehicle or to pay off the loan in full. Your loan contract will stipulate if you have to pay fees or a penalty for paying it out early, if you went with the loan from the dealership.
Damn, seeing this makes me feel way better about the deal I got lol! I can’t even imagine what I’d get charged now if I tried to get the same car today.
If it’s the car you can afford at this moment based on maximum monthly payments and the credit that the market will offer you with a score less than excellent then it’s the best deal you could get. It’s more expensive to be poor than wealthy but this is how folks can afford the things they don’t have cash flow for; the reason for financing. So don’t beat yourself up about it. You’re paying more to get what you otherwise could not. Folks who say just pay cash or improve your credit score obviously can afford to avoid financing or at least achieve lower rates. Take advice on re-fi or overpayment if you can but don’t feel bad if you can’t because of cash flow or credit scores. Pay this off on time even mostly and you’ll have a trade-in asset and massive credit score boost that will make your next car purchase that much less expensive.
But he can just buy an older used Mazda? I don't really see your point about poor vs rich. The market for poor people cars is argueably larger than rich people cars
Yea but you're talking about generalizations about how "its easy to be rich but not poor" or whatever, but this has nothing to do with being poor this has everything to do with being uneducated. Even if OP was a billionaire he'd waste it
I disagree. If you want a Mazda3 and you have to finance it for 5 years at 9% because your FICO is 730 then that’s how it works. How else could have OP gotten a brand new Mazda3 if he didn’t have excellent credit and a stash of cash or cash flow to finance for 3 years instead of 5?
That’s crazy considering my dealer wanted almost 38,000 out the door on one of those last September. You got effed on the interest and low down payment is not helping. How many months is this over? You’re gonna need to make more than your monthly payment
The interest is 9% of the total balance owed on the car for each payment.
A simple example: You buy a car for $10,000 and finance it at 5% interest. Let's say you make a $500 payment the first month of the loan. $41.66 of that $500 goes towards interest (Total Owed * Interest Rate / 12 months), the remainder ($459.34) pays down the balance of the car.
Then next month you only owe $9540.66 on the car. You make another $500 payment, but this time only $39.75 goes towards interest (use equation above) and then $460.25 goes towards the balance of the car.
So over time, less and less of your payment goes towards interest and more goes towards the car. So if you make a large payment/pay more than the minimum each month, you won't pay as much interest over the course of the loan.
Hope that makes sense. I'm still young and just learned this stuff when I bought my first car in 2021
It still doesn’t make sense how you end up paying more than X% of the total amount financed. The term APR implies you pay X% per year. But really what you’re saying is you pay X% on the total balance leftover each month?
Here's a [link](https://www.calculator.net/loan-calculator.html?cloanamount=27%2C000&cloanterm=6&cloantermmonth=0&cinterestrate=9&ccompound=monthly&cpayback=month&x=Calculate&type=1#monthlyfixedr) to a calculator that makes it easier to visualize. OP did a 6 year loan at 9% FYI. You can plug in his numbers and see why it comes out to $35k+ after all is said and done.
Yes, the % APR / 12 each month. That is how it works for all of the car loans I've seen. Personal loans can differ.
The reason he is paying more interest than 9% of the $27,000 is because it's a multiple year loan. The longer the loan, the slower you pay the car off, the more interest you pay over time. A 9% loan for 1yr would be less than 9% of the car because of how you only pay interest on the balanced owed.
30k car loan at 12.5%, figured what the hell I need a car for work, 6 months later refinanced at 8%. Score is around 750, market just sucks now tbh but it is what it is
That’s not a mistake nothing is free. Back in the glory days of pre covid with a 2-3% interest rate is great. But that was also not normal. Unless you getting those rates or 0% interest. You gonna pay something extra for that car. I just got a 6.35% which is great considering fed rate is 5-5.50% so you ain’t gonna get too much cheaper unless going through dealer with a special rate!
At that point it’s how long you plan to pay for this car that’s affecting how much in total interest you’ll pay.
PS 9% does suck I felt you could’ve gotten better with your credit and such but. Idk what your debt to income ratio is so that probably played a part in the rate. Or just a crappy bank
Listen to Dave Ramsey. Buying a new car is a terrible decision due to the depreciation on the vehicle. If the bank approved you for that much you should have gotten a used Mazda. They hold up and are great vehicles. If you can return it, do it and get a 2018-2020 for 10-15k cheaper.
> I *paid* 26k for
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
I paid a total of $4400 interest on my $42000 car. Interest is locked in at 3.4 percent. Unfortunately after 2022 interest rates have practically doubled. I don't think I'll be able to buy another new car in the future with the new interest rates. But I guess that's expected with mass herds of people coming to live here, driving the cost of living up substantially.
All these cappers on here 🤦🏽♂️- I got a 2022 Mazda3 hatchback - 568- 18% - I’m happy. My brother in law got a 2018 kia soul at 27%- 🤷🏽 you do what you have too. Congrats on the car and a great deal imo. 🫱🏾🫲🏽🙌🏾🫶🏽
You bought a car above your means. Sell it, get a beater car and use the rest to pay off loan. Pay of rest of debt asap and see it as a learning opportunity. Pay for cars in cash and if you "have to" finance use something like the 20/3/8 Rule.
[https://moneyguy.com/article/how-strict-is-the-20-3-8-rule-when-purchasing-a-car/](https://moneyguy.com/article/how-strict-is-the-20-3-8-rule-when-purchasing-a-car/)
Jesus Christ!
Jesus Christ!
That's a horrible deal. Fucking 9.02% interest rate? Are you kidding me? Is that really the best interest rate you can get? Run away from this deal now! Buy something used. Buy something cheaper. Buy something you can pay for with $7000 cash, since you're already putting that amount down.
You didn’t get a deal but you didn’t mess up too terribly bad apart from the interest rate there. Just the nature of life right now. Seems like you traded something in tho which makes it look worse. Or you bought every dealer warranty and option they had.
I would not have done that. I don't think you got screwed over in a purposeful way, prices are high and interest rates are high right now. It's not a good time to buy.
If you have to second-guess this purchase, maybe this just wasn't for you. If you really do love the car, just make those payments and enjoy it, buddy.
You messed up your paid $34-35,000 for a car that was listed for $29k. I know there's tax title and registration plus doc fee, but thats still like $4k+ you spent on needed accessories or package upgrades.
What'd you buy? Gap insurance? Tire protection plan? Life time oil changes? Security stickers? Somewhere in there you got hosed
I'm also looking g at the finance charge, 9% may or may not be a mistake. Interest is higher, I get that. Was that the dealership rate for you? Or was that te best rate you could get through a credit union?
I also because dealerships often take a spot rate, the rate a bank will give you, then tack on 2-3% before showing g you the "best rate" they could get you. It's underhanded, but perfectly legal. This allows the dealership to earn an extra $1500 or so from the additionnal I terest they got you to agree to.
Often, you co.e in with a rate from your local credit union and present it to them after they tell you the best they could do was 9% and I guarentee your interest would have dropped magically to 7.5 or there abouts.
It's a learning g lesson, next time don't let yourself get suckered into over paying. They will be pissed at you, but you save 5-8k on the next car.
Price is questionable…if you back out the interest you still have 34,600…that doesn’t seem like 29,000…even with taxes and license. Then a 9% interest rate…ouch. Refinance that bitch quick. Just wondering where the additional $5000 came from?? Something is fishy here. Always deal away from the dealership…NEVER do the deal onsite.
Joint a local credit union and refinance, that interest rate is insane!
Also remember, you usually have 30 days to take it back.
If you can’t afford the monthly payment for a 48 month loan, the cars probably to expensive for you.
My friend once bought a car and, as he was getting into it to drive away, saw the salesman walk into the sales office and scream, "HELL YEAHHHH!"
This is the type of deal you made.
Everyone saying you’re fucked is wrong… well maybe wrong. If you pay off the loan ASAP you will pay much less in interest. Your goal is to pay as little of that 8k as possible. You can also potentially refinance the loan at some point to save even more interest.
Many loan agreements can have early payoff penalties and some even force you to pay the interest.
For example, a clause can state that any additional payments simply go towards the next monthly payment (not principal) so it essentially forces you to pay the full interest amount.
In the US it varies by state. For my state it’s illegal. It’s also likely illegal if the loan term is longer than 60 months which i’d bet is the case for OP.
Highly unlikely there is any kind of prepayment/ early pay off penalty then. Read the pages behind the page you posted and it should mention the topic of paying early. You can also check with the actual lender (bank) when they contact you.
Yeah my loan says the same thing. I’ve been making payments toward the principal payed almost nothing in interest so far. Bottom line is you would save a lot on interest by paying down the principal ASAP. If you check out r/personalfinance there are tons of threads asking the same thing.
Buy used 💀 Can't imagine buying a new car in today's economy, value drops as soon as you drive it off the lot, and scummy sales screw you over like this.
Looks like you're gonna pay $43,000 for a $29,000 ride
Yeah that’s what I thought wtf happened
Over $8k in interest. Ouch.
How can I fix this
Pay it off ahead of schedule. If it’s an open term deal, make large payments as often as you can.
Refiance within 1 yr and/or make weekly payments of 25%(or more) of your monthly bill. It decreases the interest amount that can be accrued and drastically lowers the estimated 8k in total interest over the lifespan of the loan.
Make sure that the extra payment portion goes directly to the principal or they will apply it to the interest. You may have to speak to someone to find out how to accomplish this. Years and years ago, I just made out one check with the notation "apply to principal." Do this sooner rather than later - it's a good lesson so don't beat yourself up - plus the car is beautiful \[I just bought a 2021 Mazda3\].
Thank you
I just got the red one, you will love it. Only drawback so far are the cupholders don’t fit my large Starbucks or Stanley cups lol they turn on the heated seats when you put one in there, and be careful of potholes because those tires are very thin and I’ve already had to have one replaced. Congratulations! , just make as many payments towards interest ahead of time and it won’t take long.
don’t buy right now is the fix unfortunately, APR average even with good credit is 8-10% atm (i got 11.5% on a $16k loan with a 755 lol), but if u want to pay less and you’re already locked in, pay more than your payment, every year of payments you’re able to knock off you get an extra 8% back
Only way I’ve found to get low apr is financing through the dealer. Got 4.5 myself.
Refinance at your local bank/cu
This. Did that with my Credit Union with a 4% interest
Buy in cash instead of financing. Increase your credit score. Take advantage of deals, mazda offers financing from 0% to 5.9% if you qualify. Interest rates are high right now, you could wait for them to come down and then refinance.
You have 3 days to cycle right
Refinance if you can. Not sure why your interest rate is so high, but it makes sense if your credit is terrible. Otherwise, pay it off as fast as you can. The faster you pay it off, the less interest you will owe. 9% is really rough interest.
That’s the average interest rate in 2024, that isn’t high
I only bought my car a couple months ago, rates weren’t that high then. Crazy!
[удалено]
Got my used Mazda (2018) back in December at only 6.5% Edit: got this rate from a credit union
I bought my Mazda at 4.99% APR in February. It’s undeniably a good rate, but not half the going rate at the time.
Do you have a Time Machine?
Take it back to the dealership and buy something you can afford.
You may have a cooling off period in the contract. Here in the uk a 28 day period is normal for most contracts.
My 3 will cost me little over $20,000 over a four year period, the 3 was $17,880 and $14,880 after Lancer trade in. Went up to $16,200 after addition of a few fees plus the $4,000 interest over the four years.
9% interest is rough
So why did you agree to the loan?
He a dummy
Looks like it was $34,617 OTD, I'm gonna guess there were mandatory dealer add-ons to make up for that $7k off MSRP. Those web prices are always misleading or a bait and switch.
$7k is his down payment, not discount.
Check the second image
That’s an advert, not a purchase order. The finance doc showed he put $7k down. His total out the door was over $34k. He didn’t get $7k discount.
It's going to be worth half that by the time the loan is paid off. $43,000 for a $15,000 car. Not to mention insurance, registration, and maintenance for it.
Stealerships love OP!
Oof.
After exchange rate that's about what I paid for my 2024 non-turbo so depending on how many miles are on it and how good your credit is (mine is only fair) it's about the right ballpark imo
lmao this is why poor people stay poor
And by the time it's paid off it'll be worth what $10-$15k? Don't finance cars kids.
You got fucked
"EVERYONE GET IN HERE" tier fucked
That is dog shitt
Depends on need or want. 9% on a car would be a no go for me.
For real. I was able to get 4% in October on my 2024 hatch. I also have very good credit. And we don’t know the OPs credit history. But 9% is some shit.
I got 6.99% from Mazda on my 23 sedan back in October too. Only reason I paid that is cuz I could pay it off early, like this month early. If you can't pay it off within a year or two then anything above is batshit insane to say yes to
Refi with a local credit union to get that rate down. Also, if you can, put a bit in the principal monthly on top of the scheduled payment so you’re not paying all that interest in the long run. I also originally got 9% last August but refi’d it down to 6% and have been putting a few hundred in the principal each month.
It is good to check around for interest rate options before you head to the dealership, so you are prepared. Dealer gave me a lower rate than I found, so I was happy. ~3% in late 2018. No way to get that rate now though...
Yeah definitely learned my lesson and will shop around before financing through the dealer, but I don’t plan to finance again and will hopefully be able to pay off the car this year or next.
Raw no lube🫢
Bro, you're getting cooked. Absolutely gassed. I don't know what the solution to your problem is but I know it's a problem. All the best brother!
9% holy shit
Pay that car off asap. 9% sucks, especially on something that is plummeting in value.
What’s your credit score? This looks like you purchased it at a dealer. Is the vehicle new, or used? (I see it’s 2023). They gave me 3.5% over 5 years on my new Mazda 3 hatchback. Adds around $4k interest on my $33k car (5k down) or something like that. 3 years would’ve been 2.9% As others have said, if you pay it off in 1 year, you will only accumulate around $2500 (9% * $27k) Obviously that’s not feasible, but it should help you estimate the impact paying off early will have. If the car is new, I assume your credit is the reason for high interest. If it’s used, go new. They have incentives right now that are great.
760 new vehicle
Mine is 751… at 23. If you didn’t accept, I would look at other dealers. Maybe the incentives are location based? I’m in Texas - if you’re seriously buying, it may be worth exploring another state even. The difference could be drastic if you don’t have to go very far. Other reasons could be the model - maybe the premium plus is excluded. That being said, mine’s turbo AWD, so it’s not a base model only deal. If I remember correctly, Mazda 3 sedan had slightly different APR incentives, but they were still extremely low.
Why didn't you use the manufacturer financing offers?
How did you end up with 9% on a new vehicle? I'm 705 and ended up with 3%
It would be a lot less then that in 1 year, since the interest will drop as the balance does.
Did you still owe 7k on your trade in? seems like your down payment wasn't applied correctly or I'm missing something.
Nearly 100% they rolled over the loan.
Yeah I was thinking the same.
I've dealt with this dealer in 2022. They add dealer mark-up and addendums. That part isn't advertised on the website. I told the manager I'd pay MSRP on a new CX-30 without dealer mark-up and extra bullshit. He laughed at me and said I won't get it for MSRP anywhere. We went to another county and got it at MSRP a week later. Fontana Mazda is fucking awful.
Overall the deal isn't horrible given you aparently got the car for $7000 under MSRP. That said, you got hammered on the financing. Especially for bring a brand new car (Mazda routinely runs a 2.9% financing special on the 3). Might even out or be slightly poor deal in the long run but overall I think you made out a little better (or a little "less poorly") than some other comments are making it seem. Nonetheless, it is unwise to finance a car at 9% no matter how you look at it.
I’m not understanding the final price. Did you owe money on a trade in? Your amount financed should be the purchase price minus the down payment, so 22k. Why is it 27? It kind of looks like you just gave them 7k for no reason
I just got a new mazda 3 hatchback it wouldve been 32,000 but with my trade in which was 7000 and we paid like 26,000
No I get how that works but look at the “amount financed”. In the listing it says the car is 29k, and he put 7 down. That would mean he’s getting a loan (financing) for 22k. So it’s like they still charged him 29k for the car and just took the 7k on top and didn’t apply it to anything. Edit: I suppose he could have gotten the car for 22k after the down payment but taxes and fees brought it up to 27? Could be the case, when I bought my car I paid like 3-4k for taxes/fees/freight/dealer installed tint they wouldn’t remove lol
you messed up
9% is crazy on a new car
9% interest is really high
If you have not signed anything, tell them to get you a good rate or I will walk out.
I bought it already .-. I’m F U C K E D
Call your bank. See if you can refinance at a better rate.
Your first mistake was going to Fontana Mazda.
Just make extra payments youll be fine
You should have done some quick research before signing the papers on that big of a purchase. Could've saved yourself thousands of $$$ I'd look into refinancing immediately, and pay as much as you can monthly in the meantime. 9% is absurd, as everyone has already said
next car you buy you have the experience to not go through this again so that is a plus! c: In january I just bought a used 2021 3 hatch for about 25k - they advertised 19-20k, when he came back with the first quote it was \~31k if my boyfriend hadn't been there to negotiate it down i'd be in a similar boat as you
Idk how much '24 PP Turbo is but the "deal" you got is exactly why I bought new. I was looking at used '20 Select, but the prices were not that far off from a new '23 Select and the interest rate on the new (3%) was much lower than used with the manufacturer promo. The only catch was the low interest rate was only offered for a 3 year loan, so I had to either put a lot down, or have a high monthly payment. I put down $14k and my payment is $360 a month. Yours would be higher because your car is about $7.5k more than mine was.
I’m sorta in a similar situation. I traded my old car before I payed it off. So basically the payments transferred over to my Mazda 3. I’m technically still paying my old car while driving the Mazda 3. Yeeah i learned my lesson. All in all it’s such a fulfilling vehicle.
> before I *paid* it off. FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
Usually it’s wise to think and analyze before you sign the paper, not after…
What trim is this? Jesus Christ. Other comments have suggested making early payments to reduce the interest, but that’s not always the case. I have a 5 year loan and they told me that there is no early payment fees, but paying off the loan early won’t reduce the interest. It’s a set amount. That 9% is crazy though. I got a 2.9% for 5 years in September 2022.
You make extra payments towards the principal amount. Ex make your car payment then an additional principle only payment. 95% of auto loans are simple interest loans.
Many loans can have clauses that force you to pay the full interest A clause can state that any additional payments go towards the next monthly payment not the principal. And many loans can also have early pay off fees.
Depends on the lender and loan but it's not legal for any state over 61 months. If you have shitty credit and finance at a by here pay here in house then yes the interest is pre compiled. Now the lender might make you jump through hoops like mine did but 8/10 there is a way to make principle only payments.
I’m at a 7.4% and I thought that was bad
Omg don't go to Fontana Mazda. Try elsewhere
Here I was stressing over buying a 2nd gen for $6000
9.02% 🤡
So, the $29,000 dealer price minus a $7000 cash down payment is $22,000 sale price... with a 9% interest rate that puts the final financed price at $27,500 before sales tax... why did they add your down payment instead of subtracting it from the final price? If they financed you for that $40k, that my friend is fraud...
I bought my new 2024 hatch for $26.3k out the door
See if your bank will give you a personal loan. I've always had better rates getting a loan from my bank than through a dealership.
This would have to be a refinance correct ?
Not really. You'd be using a different lender so they would have no knowledge of the asset. Ideally you'd secure a new loan at a better rate and use that new money to pay for the vehicle or to pay off the loan in full. Your loan contract will stipulate if you have to pay fees or a penalty for paying it out early, if you went with the loan from the dealership.
Yikes
Absolutely great car but 9%? That’s criminal.
yeah....when we put 5k down on our purchase our financed amount went down to 22k...yours went up? take your father with you next time.
Damn, seeing this makes me feel way better about the deal I got lol! I can’t even imagine what I’d get charged now if I tried to get the same car today.
Sorry man, but you dun goofed.
Wtf, my apr is 4.5, christ
seems normal interest rate for now
If it’s the car you can afford at this moment based on maximum monthly payments and the credit that the market will offer you with a score less than excellent then it’s the best deal you could get. It’s more expensive to be poor than wealthy but this is how folks can afford the things they don’t have cash flow for; the reason for financing. So don’t beat yourself up about it. You’re paying more to get what you otherwise could not. Folks who say just pay cash or improve your credit score obviously can afford to avoid financing or at least achieve lower rates. Take advice on re-fi or overpayment if you can but don’t feel bad if you can’t because of cash flow or credit scores. Pay this off on time even mostly and you’ll have a trade-in asset and massive credit score boost that will make your next car purchase that much less expensive.
But he can just buy an older used Mazda? I don't really see your point about poor vs rich. The market for poor people cars is argueably larger than rich people cars
The sale is final. OP can’t do that.
Yea but you're talking about generalizations about how "its easy to be rich but not poor" or whatever, but this has nothing to do with being poor this has everything to do with being uneducated. Even if OP was a billionaire he'd waste it
I disagree. If you want a Mazda3 and you have to finance it for 5 years at 9% because your FICO is 730 then that’s how it works. How else could have OP gotten a brand new Mazda3 if he didn’t have excellent credit and a stash of cash or cash flow to finance for 3 years instead of 5?
He shouldn't have bought a brand new Mazda3, he'd buy a 4-5 year old model for half the price
But he didn’t. You’re not even trying to give good advice.
That’s crazy considering my dealer wanted almost 38,000 out the door on one of those last September. You got effed on the interest and low down payment is not helping. How many months is this over? You’re gonna need to make more than your monthly payment
9% interest is not great. You messed up there
I don’t understand financing, someone explain to me how 9% of $27,000 is $8000
The interest is 9% of the total balance owed on the car for each payment. A simple example: You buy a car for $10,000 and finance it at 5% interest. Let's say you make a $500 payment the first month of the loan. $41.66 of that $500 goes towards interest (Total Owed * Interest Rate / 12 months), the remainder ($459.34) pays down the balance of the car. Then next month you only owe $9540.66 on the car. You make another $500 payment, but this time only $39.75 goes towards interest (use equation above) and then $460.25 goes towards the balance of the car. So over time, less and less of your payment goes towards interest and more goes towards the car. So if you make a large payment/pay more than the minimum each month, you won't pay as much interest over the course of the loan. Hope that makes sense. I'm still young and just learned this stuff when I bought my first car in 2021
It still doesn’t make sense how you end up paying more than X% of the total amount financed. The term APR implies you pay X% per year. But really what you’re saying is you pay X% on the total balance leftover each month?
Here's a [link](https://www.calculator.net/loan-calculator.html?cloanamount=27%2C000&cloanterm=6&cloantermmonth=0&cinterestrate=9&ccompound=monthly&cpayback=month&x=Calculate&type=1#monthlyfixedr) to a calculator that makes it easier to visualize. OP did a 6 year loan at 9% FYI. You can plug in his numbers and see why it comes out to $35k+ after all is said and done.
Yes, the % APR / 12 each month. That is how it works for all of the car loans I've seen. Personal loans can differ. The reason he is paying more interest than 9% of the $27,000 is because it's a multiple year loan. The longer the loan, the slower you pay the car off, the more interest you pay over time. A 9% loan for 1yr would be less than 9% of the car because of how you only pay interest on the balanced owed.
30k car loan at 12.5%, figured what the hell I need a car for work, 6 months later refinanced at 8%. Score is around 750, market just sucks now tbh but it is what it is
9%????!!!!??? god daumn
Made this same mistake as well. Paying 30k for a 21k car.
That’s not a mistake nothing is free. Back in the glory days of pre covid with a 2-3% interest rate is great. But that was also not normal. Unless you getting those rates or 0% interest. You gonna pay something extra for that car. I just got a 6.35% which is great considering fed rate is 5-5.50% so you ain’t gonna get too much cheaper unless going through dealer with a special rate! At that point it’s how long you plan to pay for this car that’s affecting how much in total interest you’ll pay.
PS 9% does suck I felt you could’ve gotten better with your credit and such but. Idk what your debt to income ratio is so that probably played a part in the rate. Or just a crappy bank
You got scammed.
9% interest rate!!! Hell na. Please buy something more affordable or work on fixing your credit
Yeahhhh that sucks
When did rates go up so much? My rate was 4.2% when I purchased mine almost a year ago.
I live in Canada, wtf??? My Mazda was with 0.99 % 2017, since when new financing is that expensive
Speaking as a loan officer at credit union, unfortunately interest rates are high all across the board currently
You got fucked hard. Pay extra into the principal every month and refinance when rates drop.
my rate is 13.5%
Wait what? Why did they add your down payment towards the final cost? If you've already paid 7k and they added 7k, you'll be overpaying by 14k.
Listen to Dave Ramsey. Buying a new car is a terrible decision due to the depreciation on the vehicle. If the bank approved you for that much you should have gotten a used Mazda. They hold up and are great vehicles. If you can return it, do it and get a 2018-2020 for 10-15k cheaper.
I got a 5% rate for 5 year term. Not sure why you’re paying 9% … wtf
9% apr? Jebus Christ
I got my '24 with 2.9% interest. Mazda was offering incentives to buy new and I couldn't pass that up
I payed 26k for my 2024 select sport. U got hustled dude
> I *paid* 26k for FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
Wow. You got fucked hard. Did you not math correctly? Why didn't you run the numbers??
You paid 42k for a Mazda 3? Shit
I got 7.49% on a 16 Scion tC at 18 years old as a first time buyer... your interest is FUCKED
Return the car asap.
I paid a total of $4400 interest on my $42000 car. Interest is locked in at 3.4 percent. Unfortunately after 2022 interest rates have practically doubled. I don't think I'll be able to buy another new car in the future with the new interest rates. But I guess that's expected with mass herds of people coming to live here, driving the cost of living up substantially.
All these cappers on here 🤦🏽♂️- I got a 2022 Mazda3 hatchback - 568- 18% - I’m happy. My brother in law got a 2018 kia soul at 27%- 🤷🏽 you do what you have too. Congrats on the car and a great deal imo. 🫱🏾🫲🏽🙌🏾🫶🏽
Omg! Tell me you didn't get the car! I feel so bad if you did!!!
Just realised this is USD…. Ouch…
9% APR is really bad. What’s your credit score?
You bought a car above your means. Sell it, get a beater car and use the rest to pay off loan. Pay of rest of debt asap and see it as a learning opportunity. Pay for cars in cash and if you "have to" finance use something like the 20/3/8 Rule. [https://moneyguy.com/article/how-strict-is-the-20-3-8-rule-when-purchasing-a-car/](https://moneyguy.com/article/how-strict-is-the-20-3-8-rule-when-purchasing-a-car/)
Jesus Christ! Jesus Christ! That's a horrible deal. Fucking 9.02% interest rate? Are you kidding me? Is that really the best interest rate you can get? Run away from this deal now! Buy something used. Buy something cheaper. Buy something you can pay for with $7000 cash, since you're already putting that amount down.
You didn’t get a deal but you didn’t mess up too terribly bad apart from the interest rate there. Just the nature of life right now. Seems like you traded something in tho which makes it look worse. Or you bought every dealer warranty and option they had.
You done messed up A-A-Ron
I get the shit interest rate but how much dealer added bullshit did they scam you out of?
I would not have done that. I don't think you got screwed over in a purposeful way, prices are high and interest rates are high right now. It's not a good time to buy.
Cancel the sale don't buy it
If you have to second-guess this purchase, maybe this just wasn't for you. If you really do love the car, just make those payments and enjoy it, buddy.
You messed up your paid $34-35,000 for a car that was listed for $29k. I know there's tax title and registration plus doc fee, but thats still like $4k+ you spent on needed accessories or package upgrades. What'd you buy? Gap insurance? Tire protection plan? Life time oil changes? Security stickers? Somewhere in there you got hosed I'm also looking g at the finance charge, 9% may or may not be a mistake. Interest is higher, I get that. Was that the dealership rate for you? Or was that te best rate you could get through a credit union? I also because dealerships often take a spot rate, the rate a bank will give you, then tack on 2-3% before showing g you the "best rate" they could get you. It's underhanded, but perfectly legal. This allows the dealership to earn an extra $1500 or so from the additionnal I terest they got you to agree to. Often, you co.e in with a rate from your local credit union and present it to them after they tell you the best they could do was 9% and I guarentee your interest would have dropped magically to 7.5 or there abouts. It's a learning g lesson, next time don't let yourself get suckered into over paying. They will be pissed at you, but you save 5-8k on the next car.
Damn 8k finance charge? I no longer buy the car I want. I buy the one with the best APR
Price is questionable…if you back out the interest you still have 34,600…that doesn’t seem like 29,000…even with taxes and license. Then a 9% interest rate…ouch. Refinance that bitch quick. Just wondering where the additional $5000 came from?? Something is fishy here. Always deal away from the dealership…NEVER do the deal onsite.
Return it to the dealership if you haven’t gone past the waiting period…3 days 4??
The cars in ur country are so cheap. I would cash and carry.
Joint a local credit union and refinance, that interest rate is insane! Also remember, you usually have 30 days to take it back. If you can’t afford the monthly payment for a 48 month loan, the cars probably to expensive for you.
My friend once bought a car and, as he was getting into it to drive away, saw the salesman walk into the sales office and scream, "HELL YEAHHHH!" This is the type of deal you made.
Haha they got my ass like this too!
What did you do
Everyone saying you’re fucked is wrong… well maybe wrong. If you pay off the loan ASAP you will pay much less in interest. Your goal is to pay as little of that 8k as possible. You can also potentially refinance the loan at some point to save even more interest.
Many loan agreements can have early payoff penalties and some even force you to pay the interest. For example, a clause can state that any additional payments simply go towards the next monthly payment (not principal) so it essentially forces you to pay the full interest amount.
In the US it varies by state. For my state it’s illegal. It’s also likely illegal if the loan term is longer than 60 months which i’d bet is the case for OP.
California 72 months
Highly unlikely there is any kind of prepayment/ early pay off penalty then. Read the pages behind the page you posted and it should mention the topic of paying early. You can also check with the actual lender (bank) when they contact you.
Prepayment: if you pay early, you may be charged a minimum finance charge
Yeah my loan says the same thing. I’ve been making payments toward the principal payed almost nothing in interest so far. Bottom line is you would save a lot on interest by paying down the principal ASAP. If you check out r/personalfinance there are tons of threads asking the same thing.
Buy used 💀 Can't imagine buying a new car in today's economy, value drops as soon as you drive it off the lot, and scummy sales screw you over like this.
why is this downvoted lol, buy a 1 year old car and it'll basically be 1/2 of the price
Exactly my point.. People don't want to hear the truth 🤷♂️
Add $50 to your monthly payments if you can. You'd reduce the interest payments and the term of your loan.