My husband and I bought a 2003 neon back in 2003 and have paid faithfully for three years. We have enough money to pay it off right now and have gone to the finance company to ask what our payoff is. They are telling us that it is still 6600 now we did the math and that is what we would pay if we finished the five years. They are telling us that they won't take off some of the interest. We are at our whits end with this and do not know where else to go.

Go to their office, request printout and what would be the pay off as of that day. If a loan is paid early, they cannot charge unearn interest. Tell them to show it to you in black and white.

Just a suggestion.

HI,
As another said, please get a copy of the contract or agreement you signed to pay off the car.
If it states that there is no early pay-off, and the interest stands regardless, you will have to pay it. If it has a clause about paying off sooner, with interested only to that point, then you have a case.
It's sometimes the same as a "personal loan" from a bank. Early payoff can result in reduced interest, other times not. It depends on the agreement.
Car agreements to pay differ. I do wish you the best of luck.

I would hope this is not the case, but there are some loans, done most often for people with poor credit that does not allow for early payoff without full interest paid.

It is almost like buying at a buy here/ pay here type of car dealer.

The contract requires all interest paid, even if paid early. There are not a lot of these, I think ( no sure) but that they are even illegal in a few states.

But you need to get your finace contract out and see all the terms of the loan.

And as the last person said, you need to send them a certified letter, so you have proof, that requests them to provide to you a complete payment history and current pay off amount.

( just like you were buying another car and trading this one in)

Another device used by auto loan companies to shaft the consumer is the rule of 78's. They add 12+11+10... +3+2+1= 78. The first month they charge 12/78 of the yearly interest; the second month 11/78, an so on. This means that if you pay a 12 month loan off after only 4 months, you have paid 42/78 of the year's interest (54%). Many states have outlawed this practice. Perhaps your state has not.

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Originally Posted by Dr D

Another device used by auto loan companies to shaft the consumer is the rule of 78's. They add 12+11+10...+3+2+1= 78. The first month they charge 12/78 of the yearly interest; the second month 11/78, an so on. This means that if you pay a 12 month loan off after only 4 months, you have paid 42/78 of the year's interest (54%). Many states have outlawed this practice. Perhaps your state has not.

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Yes I had forgotten all about that they often collect all the interest up front leaving the balance.

And also some dealers may be doing it and breaking the law, since most people don't know they get by with it.