Auto Loan Bank Fees? - Is Roadloans Better?

[MakeItThru]

I am in the process of purchasing a used car to replace a car with lease expiring. Active Chapter 13 with 1 year completed and 4 to go.

I was expecting to pay a high interest rate, up to 20%. When I use a loan calculator, I get that $10K loan for 48 months is a little over $300/mo, with $1,000 down. However, the dealer indicates that a $10K at $300/mo with 22% interest takes 66 months (should be $265). I tell him that it does not add up. He said there are other bank fees that the bank needs to make money. I thought interest was how banks make money on loans. He also said, "you are in an open 13, that is what you have to deal with". What are these fees?

I also have approval from Roadloans at 19.75%. Do they also find a way to jack up the fees, or I am right to expect that a 48 month term with $1,000 down will get me a car priced about $10K?

I feel the dealer is trying to rip me off. Should I expect the same with Roadloans?

[NoTomatoCan]

We did roadloans - pre filing. Higher interest rate, but no crazy fees like that dealer is trying to pull. The rate was the rate, and the payment was simply the price of the vehicle and the corresponding interest.

Pretty straight forward.

[StartingOver08]

Stay away from that dealer. He is obviously trying to rip you off. It is one of the classic tricks of many dealerships. He is adding to the montly payment and the term so that the dealer can earn more on the back end of the deal. You did the right thing by running the amortization before you went shopping. There must be other places you can shop for your next vehicle.

[MakeItThru]

Thanks for the feedback. I was 99% sure the dealer was ripping me off, but I wanted to confirm my expectations were accurate before finding an honest one. My need for a car is not immediate, so I can take my time to find the right business to deal with.