First Investors Financial Services, IncThey take your money, but don't apply towards your accouct. Christina Vasquez Houston Texas
Frist Investors Financial Services took they payment out of my checking account every month since Nov, 2012. At $418.00 eachmonth. They took out $5852.00. Yet when we called for a payoff,I was told it was it was only $2000.00 from my original loan. Thinking it was just an error. I called these folks, I was told itwasn't an error. They just pull their interest payment frist. Very, very little goes to principle. They do this to keep us from trading in our cars. What is worse is that because of their bussiness practices I am forced to go out and buy another car and it get it financed by a reputable financial institute. I am afraid that after paying off the loan with 1st Investors, that they will do us like they did so many other customers that they have had.
Sincerly your,
Mary Snow
1 Updates & Rebuttals
FloridaNative
Palm Beach Gardens,Florida,
Yes, the interest is paid first when you borrow money
#2Consumer Comment
Mon, February 10, 2014
I have nothing to do with the company you have complained about in your post. I am answering your post because you are confused on how loans work.
When you borrow money, interest is charged. If you borrow money at a high interest rate, then the payment will be higher. You can check your note to see exactly how much you will be charged. The note specifies the interest rate and the terms of the loan. If you didn't get an amortization schedule with the note, then you can run your own by looking up one of the many free amortization calculators and inserting the correct info. For example, bankrate(dot)com has a free auto loan calculator you can use.
You don't have to buy another vehicle to reduce your payment. You can go to your local bank or credit union and refinance if you qualify for the loan.
In the future, don't use the financing at the dealership to purchase. Do some research online and you will see that if you have your financing lined up before you ever shop for a vehicle you will be in a much better position to negotiate a better deal. If the dealership tells you they don't accept outside financing, then that is your cue to walk away because you know they are going to rip you off.
Protect yourself. Don't jump from the pan into the fire by going to another dealer and getting another vehicle. Fix this problem first so you don't end up with a repo on your credit. Do some research on vehicle purchasing and vehicle financing so you aren't taken advantage of again.