Funky payments on truck, seller now wants to add 7% interest!?

its 157 dollars on the total amount but she should only charge interest on the after deposit amount,you are using her money to carry the time payments you have to decide if you really want the truck

after the deposit amount the 7% would be 115.50 dollars

She's allowed to do so if you're making payments. She can write up any type of contract she wants.

However, it's not like you're paying $100 a month for years. At the rate you'll pay, you'd have that truck paid-off fairly quickly compared to a conventional loan. If I were in her shoes, I don't think interest would be necessary.

There should be a contract in place, but you do not have to agree to it. Make sure you have a figure from her as to how much interest is paid out on the life of the loan. Ask her if interest will be paid if you pay off the note early. If she still wants to charge interest on the vehicle, you can step away from the deal. Your call.

Reasonable, fair, good deal or bad . . . if she can alter the plan at the last minute - so can YOU.

Agree to the interest consideration IF it is matched by a price reduction. After all, you agreed to a budgeted amount and that is all YOU are willing to spend for the used truck in a market loaded with old trucks such that she WANTS/NEEDS to sell.

Walk away power will make the deal that leaves everyone happy.

She cant charge you interest on a private sale! What the h*ll is that? If she does, she might be trying to rip you guys off, because if the interest rate is a variable rate, she can adjust the interest percentage monthly as she wishes, and you guys could end up paying like 40% interest! Read the documents carefully for any hidden small print, but it still doesnt sound right to me...just do what you said you were going to do...ask her to add the extra "interest" to the down payment instead. She also might have just said she was going to charge you interest so you guys would offer to pay her the extra amount now, therefore she is making more off of the sale...sounds like a schyster to me...be careful and good luck

7% is not bad. If you are paying as you say then the total accrued intrest will be ~$17 as 7% on$1000 for a year is $70.

$2250 for a $2350 truck is no bargain.

One of you is not good at math. You're only borrowing 1200 for 4 months. 4 months is ONE THIRD OF A YEAR. So 7% interest on 1200 dollars for a third of a year is going to be about $20. Not worth haggling over.

Oh, look you asked a question: "$400 more - Does that sound remotely close to correct?"

The answer is NNNNNNOOOOOOOOOOOOO!

Yeah, I don't see her point is adding interest. It's not like she's loaning you cash that she could be investing somewhere else for the same or better interest rate. You are not paying for the use of her money, unless her logic is that she could sell the vehicle to someone else for hard cash, and she's losing the use of that money since you are paying it off over time. To you, it's the cost of her giving you the privilege of making payments instead of paying cash. It's not unreasonable, just a little strange.

Interest is the cost of borrowing money. You're using her money, she's entitled to something for that. 7% is reasonable.