Drive Financial Services Made first 5 payments totaling $2450.00 - Account balance only decreased $315.00 Dallas Texas

You have high intrest because your credit sucks. I can't believe you didnt know this before you signed a contract with drive financial.

It was the dealer....if you bought that thing this year and paid that much they got you. Given the current market for those things you likely got taken. Also....unless u needed something that big why wouldnt you look for something a bit older or less expensive or with that much cash that you could pay off. There are tons of vehicles with that much cash could have been paid off but I dont want to know your business that was just a observation. After you have been paying for a year and with that much equity you might try to refi...although with that much cash into it I'm surprised u ended up at Drive anyway.

While the rates you are being charged by Drive border on insanity they charged them for a reason....you were a risk as was I. I think the rip off here came from the leeches at the stealership. I had same issue made a bunch of paymebnts and when I refied the payoff was the same as when I bought it 6months earlier. I just bit the bullet and ran as fast as I could to get away from them. Hopefully you can look into doibngthe same.

Based on the balance going up $273 when you skipped the month, it looks as though your payments are being charged $9.10 per day in interest (at this early stage in the game). I'm not really sure if that amount is correct without knowing your interest rate and exact loan amount. Here's how your payments probably worked (based on a simple interest loan):

Payment 1 - Your balance should have decreased by around $220 if it was posted on the exact due date.

Payment 2 - Your balance should have decreased by around $220 if it was posted exactly 30 days since payment 1.

Payment 3 - Your balance should have decreased by around $220 if it was posted exactly 30 days since payment 2.

Now, here's where it gets tricky. Since you were overpaying, they were reducing each month's payment by the overpayments. Because you opted to skip a payment when you thought you were ahead, here's what happened:

Payment 4 - Skipped

Payment 5 was charged for 60 days interest rather than 30 days (because it was 60 days since your last payment). That is around $560 to interest. Since you only made a $500 payment, you were behind $60 in interest. This figure only works if your payment posted exactly 60 days from the last payment

Payment 6 was charged for 40 days interest (because you were 10 days late and only if they posted it exactly 40 days after the previous payment). That is around $370 to interest plus the $60 you were behind last month (plus a little more for being the $60 behind, but I cannot figure that one out) = $430. Out of your $450 payment, around $20 may have gone to principal.

Technically your loan should be reduced by around $650 rather than the $315. Were you charged a late payment fee when you were 10 days late?

You can probably figure this out on your own since you know the exact post dates of each payment. Go to an amortization spreadsheet online to see how much interest your payments are being charged each day (take the first month of interest and divide by 30 days to see approximate daily interest).

Hope this helps you to understand the wonderful world of auto loans. Read up on simple interest loans.