Car payment question ?

FIGURE IT OUT for YOURSELF! YES it is a VERY VERY bad deal! By the time you pay it OFF you will have spent nearly FOUR TIMES what the car REALLY worth! DEALERSHIPS that do this should get SUED! seen it OVER and OVER again! 300 MORE than $22,000 will be spent! LOOK INTO different payment plans from UNONS or other car financing institutions! They CAN refinance at a MUCH lower rate! You will be paying ALSO the INTEREST rate Within these payments! That shoots it up to more than $26,000! JEEZ! Go to CARS.com and see how THEY finance things! You should be paying FAR LESS! it's the last way and EASIEST to ROB people BLIND! taking SEVEN YEARS to pay it off?!?!?!? WOW! I would say that is a VERY VERY BAD DEAL! Look into CARGURUS!  And EACH passing year the thing will DEPRECIATE as well and its VALUE will DECREASE! YOu got SNOOKERED here! 

Assuming the price was 12000 and you’re paying 300 a month (no down payment?),

that’s roughly 25%APR, which is high but not as outrageous as some loans. 

However you probably could have got a bank loan for under 10% if you have a good credit rating.

It just shows how interest can drastically increase what you owe.

I am a very simple minded person, at the beginning. 

You said $300 per month for 72 months. 

Let's do some multiplication. 

300 × 72 = $21,600 

Did you say you paid $12,000? 

$21,600 - 12,000 = $9,600 

So you are paying just under $10,000 for the use of someone else's money. 

Have you learned anything? 

You are paying to much thats a long payment plan 72 months wow overpaying

Yes you way overpaid. Those cars are junk my uncle had one and the head gasket blew. Should have done you research before you bought the car. I would pay it off quickly and trade it for a toyota or honda.

That's roughly a 22% interest rate - so yes, that's a terrible deal.  Over the term of the loan you will end up paying nearly $22,000 for the car (almost $10K in interest)

BUT

If you had bad credit (or worse - no credit), you may have not had much of a choice - and depending on the mileage and condition of the vehicle, you may have not gotten completely screwed - and you will be building your credit rating by paying that high interest (assuming you make every payment on time).

You also have the option of paying more than the minimum payment - pay it off early, and you will have paid less interest - but keep in mind that since you have a loan, you will also have to have full-coverage insurance, and you will need to make sure to do routine maintenance on it to keep it running at least through the term of the loan.

You will eventually have to buy tires (hopefully they put new ones on it before you bought it), and god willing you won't run into any major mechanical problems.  Subaru tends to make pretty good cars, but this one is already 9 years old, and it can be difficult (if not impossible) to tell how rough the previous owner(s) were on it, or how well it was maintained unless they kept records.

Good luck - and use this as a learning experience.  Most people get mowed down by car salesmen their first few times (and some never stop).  In the future talk to your bank about financing a car instead of letting the dealership arrange financing for you.  When you discuss the price of a car, talk about the purchase price, and not the monthly payment.

Your interest rate must be very high if it's going to take 6 years to pay it off.  I just bought a 2015 Subaru Forester for about the same price, financed it for 4 years and my payments are less than yours. You're paying $21,600 for a $12,000 car that may not last as long as the payments.  See if you can refinance it for a shorter term through a credit union.

That’s 21,600 in payments alone — not counting your initial 12k down payment.

A brand new Outback costs about 26,000 dollars.  That would have been cheaper.