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Americredit We got taken 4 yrs ago and are still paying for it!!! Arlington Texas
Okay, so here is what happened. About 4 yrs. ago my husband and I went to Linnahan's to look for a newer car. We traded in our older jeep for a 2002 Jeep Cherokee. We were accepted by Americredit and took the jeep home.
We made our first 3 or 4 payments. I always got the payment statement in the mail, but never really looked close at it. We just payed it every month.
When I looked closly on day I noticed the intrest was $350.00 and the principal was about $44.00, I almost fainted!!! After that we continued to pay because we had no other option, we had been taken. When we signed for the jeep this was never presented to us!!! We would of walked in the blink of an eye!!
So about 2 yrs. later, the 4 wheel drive in the jeep was not working and a couple other big repairs needed to be done. At this time we had had our 3rd. child and I was not working. Only my husband was working and his hours were cut back due to the winter months. We were behind 1 1/2 payments and getting calls from Americredit all the time. We came to the conclusion we could not afford the jeep, so we volunteerly turned it in to Americredit. We should of kept it!!!!
Americredit sold the jeep for $6,100.00 at an auction. After they sold the car and deducted it from the blance, we still owed just about as much as we did the day we signed the papers at the car dealership!!! Pretty sad uh?
We are still continuing to pay of the jeep. It is a huge headache. I wish that all of this would of been presented to us at the time of the sale. To us this seems like loan sharking!!!
We are pretty certain Americredit will get away with screwing us over. My wish is that anyone thinking about buying a car, get every piece of info you can and read every single line of the fine print. If you do not understand something, ask! Demand to know the intrest rate and what the payment will be. Most importantly research the lender!!!! I have read so many rip off reports about Americredit it is so sad!!! We were stupid to sign the papers and we are still living with that mistake. Thanks for listening.
Chrissy
plymouth, Maine
U.S.A.
5 Updates & Rebuttals
John
Califon,New Jersey,
U.S.A.
Why are you having more kids that you clearly can't afford?
#6Consumer Comment
Tue, March 24, 2009
How did Americredit cause you to get pregnant and cause you not to work? How did they break the 4 wheel drive? How did they get your husband's hours cut back? It is not anyone else's fault you chose to live beyond your means.
John
Califon,New Jersey,
U.S.A.
Why are you having more kids that you clearly can't afford?
#6Consumer Comment
Tue, March 24, 2009
How did Americredit cause you to get pregnant and cause you not to work? How did they break the 4 wheel drive? How did they get your husband's hours cut back? It is not anyone else's fault you chose to live beyond your means.
John
Califon,New Jersey,
U.S.A.
Why are you having more kids that you clearly can't afford?
#6Consumer Comment
Tue, March 24, 2009
How did Americredit cause you to get pregnant and cause you not to work? How did they break the 4 wheel drive? How did they get your husband's hours cut back? It is not anyone else's fault you chose to live beyond your means.
Nikki
Coconut Creek,Florida,
U.S.A.
Look up an amortization calculator.
#6Consumer Suggestion
Tue, March 24, 2009
If you want to see how most loans work, cars, homes, etc., look up an amortization calculator online. Plug in the terms of your loan. Then request it show you the monthly breakdown. You will see how much goes to principal and interest each month.
I know, it's a shock when it's your first time. That's the way these loans work.
Robert
Irvine,California,
U.S.A.
Sorry...
#6Consumer Comment
Mon, March 23, 2009
But this is how all car loans work. Americredit is a Sub-Prime lender, this means you had credit issues in the past. Nothing you wrote here is any different than any other lender would be. Remember they are allowing you to borrow several thousand dollars with your legal promise that you will repay them in a timely manner. This means the amount agreed to EVERY month.
During the first portion of your loan a majority of your payment will be going to interest. Just as at the end of the loan you would have found that it was the exact opposite where a majority of your payment was going to the principal(why does no one complain when this happens?). No reason to faint about this as there is nothing wrong or a RipOff in this. There is one thing that can cause "additional" interest, that is not paying your bill on-time. If your bill is due on the 1st, it is late on the 2nd. So you will be charged additional interest, as there is no grace period on payments. There is a penalty date that is generally 5-10 days after the due date, but that has to do with the assessing of late payment fees and not interest. So if you are late by a few days every month, especially in the beginning you can be hit with a bit of extra interest.
You then got behind 1.5 months so you had the car reposessed, and NO it does not matter if you turn it in or they pick it up, a Repo is a repo and is treated exactly the same. Per your contract they will sell the car at auction, and auction value will be about 1/3 of Blue Book. YOU are still responsible for the loan balance. Again, this is NO different than any other bank would treat you. Because YOU made a LEGAL obligation to pay back the amount you borrowed plus interest at a specific amount each and every month.
"..My wish is that anyone thinking about buying a car, get every piece of info you can and read every single line of the fine print. If you do not understand something, ask! Demand to know the intrest rate and what the payment will be. Most importantly research the lender!!!!"
- Yes you are correct about this. You should NEVER sign anything unless you fully understand it. But from experience I can tell you that while they are a Sub-Prime lender they appear to be one of the better ones. Where if you actually do make your payments on-time your balance does go down, your credit will improve, and you can refiance.