American Credit Acceptance – The worst car loan I had

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Hey what’s going on you two welcome to the credit channel where we talk about how to build credit how to establish relationships with banks and financial institutions and how to get you access to high limits if that’s something you’d like to hear about definitely make sure you subscribe to our channel for the latest notifications on all of our content we drop

Videos weekly so definitely tune in for all the good content and information for today’s video i’m going to be going over a particular financial institution and this is more so relating to auto loans so i’m actually going to share with you a personal experience you know utilizing this particular financial institution for an auto loan and what i wanted to cover

Today was american credit acceptance so just to give you sort of a little background just in my experience of purchasing vehicles the first time i ever bought a car was it was a hand-me-down car it was through a co-worker of a family member that i bought my first car and i actually didn’t buy my first car until i was about 22 years old prior to that i just went

Available you know drive my parents vehicle but anyways i bought this second you know hand-me-down car i had high mileage it was it was 2004 taurus and it had about a hundred and twenty thousand miles on it and i actually wound up spending more and repairs and what i actually paid for the car so it gave me a bunch of problems you know broke down all the time it

Had a like the gas gauge was off so it would always show fool so i never really knew how much gas was in the car and i actually let someone drive my car once before and they were driving around didn’t put any gas in it because they thought that it was on a full tank and wound up breaking down so i told myself you know next time i buy a car i’m getting something

Newer that i won’t have to about getting repaid you know spending a lot of money on repairs initially so i want to go into a dealership now at the time you know i didn’t have a very deep you know credit history so all i had at the time was you know student loans you know that that i wasn’t paying so i didn’t have i didn’t have very good credit when i did start

Looking for a car dealership but i did have a full-time job i just graduated school so i was making a little bit of money you know not a ton of money but i didn’t have as many expenses so all i would have to worry about his rent in a car know and food so at the time you know it was the payment you know the idea of having a car payment wasn’t that big of a deal

Because you know like i said i didn’t have nearly as many expenses as i do now so so anyways i went to i went around to a couple dealerships and then i wound up landing at carmack’s i had family members who had bought cars from them previously so you know i figured i’d go there and they were able to get me approved for car loan i did have to provide my most recent

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Pay stub so you know that was no milk issue but yeah my credit wasn’t you know that good but i was just i was just glad that they approved me just i did that knew that i would you know drive out with a new with a new vehicle i didn’t really read through the confines contract you know or pay attention to the fine print so little did i know this karnov had a 23%

Simple daily compounding interest so and that works a little bit different than you know simple interest but anyways american credit acceptance you know financed it and they’re there for mine like to application or whatever it didn’t allow you at least at that particular time i’m talking you know probably like seven years ago now but they they didn’t allow you

To see like your balance so the only way that i really knew what my balance was is when i call the 800 number and you know they have an option where they you know you can get your balance and of course the balance changes like every day because you know interest is accruing so you know you call it one day it may be different but anyways it was hard to see like

How much of the payment was being how much of the car payment was being applied to principle versus interest so i never really knew that right and i’m paying this car loan for roughly about four years maybe a little bit more and i realized you know i did the math so the car payment was four hundred fifty dollars a month and you know i realized that you know okay

For four years for fifty a month you know you do that for fifty a month it’s basically about you know fifty four hundred dollars a year times you know for you know that you know you’re looking close to twenty two thousand dollars twenty one thousand is a change right and so i’m thinking okay i’ve spent you know over twenty grand and my principal hasn’t gone down

As much as i thought it would have gone down you know i knew that all the 450 wasn’t just reducing my principal by that amount but you know over four years you know that just came to thinking like i’ve already paid you know over the course that for years i’ve paid more than what the car the original sticker price was which was about like fifteen thousand or so

And so of going then i got the gas hashanah it’s what i’ve made it maybe a little bit more but anyways there’s about $15,000 finance for i’ve already paid you know twenty-one thousand and some change but then i still owe a balance which to me was just kind of crazy so i called up credit one and i you know i kind of explained the situation to them and you know

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I just asked them that you know i wanted to just you know i didn’t want to continue to continue because i still had about i think it was a 66 month so i still had about maybe 16 or 17 months left so i was just like i’m not gonna wait and then at that point you know four years down the road you know the car the kelly book blue book value for that car was you know

Nothing close to what our i owed on it so in a sense i was upside down at that point in the car car loan so you know i got on the phone with them and i spoke to them and you know we came to a settlement you know agreement so i wound up you know settling you know the remainder of the balance just to get it paid off because i didn’t want to continue to do that at

That point you know four years later my credit had actually gone a lot more and you know i’ve never thought to like try to refinance or anything like that because like i said and i’m not even sure you know they they probably wouldn’t want you to refinance because they would lose money but it never crossed my mind i just wanted to get out of that just pay off the

Rest of that car loan cuz even if i refinanced i would still be paying you know i still have to pay that amount that’s more than what the cars worth so so yeah for this video i was just going to share that experience and i’ve held onto the receipt for the payoff amount that i finally did after you know four years of paying a twenty three percent interest rate so

And just to think back all that money they could have been invested and something else all going to tort interest because you know at the time i wasn’t as financially savvy you know as far as credit and you know i was looking at the payment you know the affordable payment you know i knew it’s nice you know because when you’re dropping a nicer car you don’t mind

Paying a little bit extra but then after the years i realized the value of the car you know i put you know i put a lot of miles on it too so you know after a while i realized that what i still always is worth more than what it’s more than what the cars worth so i just wanted to get out of that complete beat and luckily you know in that time you know i was able to

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You know reach higher levels in my career and you know increase my income but a lot more and use my credit by a lot more so after that after i paid that off you know the next cars that i bought have just been cash i don’t really believe now in you know getting car loans especially because you know i’m not hurt i don’t plan on purchasing you know very expensive

Cars if i do purchase a car it’s probably gonna be you know less than twenty thousand so it’s probably something that i’ll be able to pay for in cash but not to say you know if you get a good interest rate from a credit union or something like that then you know you definitely it’s much more manageable to get a car loan but yeah that’s just a cautionary tale that

I have definitely make sure you read the fine print and or you know don’t go with the dealer the in-house dealer financing because they have list of you know lenders they work with and they actually get the dealerships get kickbacks when they originate loans so even if you go to a dealership and you come with a pre-approval letter from your bank or credit union

There’s still they’ll still say to you let us just see if we even beat your rate which they know they can’t but you know they want you to go with their perfume their lender because they you know they have a financial interest in that so and then on top of that another reason why you don’t want to go with them is because like i said they work with some of these

Subprime lenders who you know no matter what they’ll get you and you know get you approved even if it’s a you know twenty three percent twenty nine percent i’ve even seen interest loan and then they’ll run your credit like you know eight nine ten times so just make sure you know our recommend if you are you know seeking to purchase a vehicle definitely go through

A credit union where you can get a little break and you know print that out and bring that to the dealership and you know just be from with them say listen i don’t want you know you don’t run my credit you know just i have my pre-approval letter here it is this is the approved amount and just go from there so so yeah that that’s all i want to go over in today’s

Video if you’re interested how to fill primary counts you can visit our website at credit plug com or if you have questions you can email me directly in 4.com until next time i’ll take it easy

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American Credit Acceptance – The worst car loan I had By Credit Plug