13 ms·

You took a loan and "the draconian interest rate" was a surprise?! I would've thought that was the most important factor.

• Spivak 5y ago
  You're missing the "car dealership game" that has to be played sometimes. Lots of places will offer you a cash discount and/or 0% interest if you finance with them. They get cash kickbacks and sometimes a cut of the interest. Now you, the savvy customer, see an opportunity here. You were going to buy the car in cash and so there's an obvious play; buy the car, take the financing, and then immediately pay off the loan (or when the 0% interest expires). It's a win-win right? Not for the bank unfortunately which is why nowadays there are early payoff fees and dealerships will try to make it annoying to pay them. Terrible terrible incentives but the discount can be worth the headache -- the discount is almost always more than the early payoff fee.