 Dear Terry,
Last year I took out an auto loan of $32,900.49 with APR of 4.99 percent for 60 months. My credit union calculated my monthly payment (also written on the contract) to be $465.11 and gave me 60 payment coupons to be accompanied with the check each month. But I just realized that this monthly payment amount is substantially smaller than what I should have been paying -- $620.72 per month, according to
Bankrate's auto loan calculator. Does this mean that my legal obligation is to only pay the amount based on the coupons or $32,900.49 + 4.99 percent?
--
Alan
 Dear Alan,
Even financial institutions make mistakes, though this one seems to be a whopper, since your total payments of $465.11 for 60 months will equal only $27,906.60, far short of the $37,243.20 for a loan of $32,900.49 for 60 months at 4.99 percent. The calculated payment amount of $465.11 would have been for a loan of $24,652.49 over the same 60 months at the same 4.99 percent. Considering that the 49 cents appears in both loan amounts, it strikes me as perhaps more than a coincidence. Are you sure you didn't trade in a car on this deal and get the difference of $8,248 knocked off?
Assuming it wasn't a trade or a combination of trade and rebates, I'd say you have two choices: Point out the error to the credit union and see what you can work out, or consult a lawyer about whether you can be held liable for the shortfall once the loan is paid off. I'd recommend consulting a lawyer first so you know where you stand before contacting the credit union.  | | This week | | | | • | 'New' Chrysler may mean more competitive pricing | | • | Does saving gas really save me money? | | • | How can I rescue my fugitive car? | | • | Did my lender make an $8,200 mistake? |
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