thrill350z

iTrader: (1)

if i have $11,000 left to pay of the car and say my finance rate is 15% (high ballpark bc i have little credit and a job off the books) what would that come to a month, over 60months?my math was
Car= $11,000
multiply 15% = $1,650
total amount to pay (11,000+ 1,650)= 12,650
divide $12,650 by 60months = $210/month
is this correct? i dont want these finance guys to screw me bc he said he will try his best to keep my payments below $300
Is this even how you do finance math? i am just using what i learned from highschool

yobri

iTrader: (2)

Try this:

http://autos.yahoo.com/finance/loan-calc/

Looks like $262 based upon your supplied info.

stevem

$262 per month-$11,000 at 15% for 5 years.

ZBoater

It is a bit more involved than that. Finance charges are calculated on a monthly basis, so they figure 1/12 of 15% of what you owe, and thats what you pay in interest charges the first month. The rest of your payment gets applied to the loan amount (principal). Next month you owe a little bit less, so the 1/12 of 15% of what you owe is a little bit less, and what gets applied to your principal is a little bit more. That is why your first few payments are mostly interest and your balance goes down a little, and your last few payments are mostly principal and almost no interest, since at that point you owe very little. You can see this relationship clearly using an amortization table.

tnkrstoyco

Pretty close, loan calculator shows $261.69
http://www.chambersbnk.com/Calculato...Calculate+Loan

FairladyZ

yep 261

njsho

iTrader: (2)

www.bankrate.com

tnkrstoyco

I use the Chambers bank schedule on a lot of stuff, since the average person at most banks don't know how to run it anymore.

thrill350z

iTrader: (1)

thanks guys, good stuff

sprmario

$261.69 w/ a 15% rate
$244.69 w/ a 12% rate
$233.72 w/ a 10% rate
$217.81 w/ a 7% rate

You need to shop around for a better rate... 15% would be ridiculous in this market.

retrainthechimp

roger that, most credit unions offer pretty good rates if you live near any military bases

ZBoater

He said he had little credit and a job off the books. Its a miracle he is getting a loan at all.

MADDOG`

Yeah, I can understand the reason for the high rate. However, he doesn't have to live with it for the full term of the loan.

If the "off-the-books" job situation changes and he becomes someone's full time, hourly or salary, slave and has 12 months or more on-time payments against the loan, he can refinance at a much better rate at a credit union. It may not be the lowest rate they offer but it will be a significant reduction in rate and payment. It is also smart not to extend the term back to 60 months when refinancing unless you absolutely have to in order to make the payments. If 12 months has passed, make it 48. If 24 months has passed, make it 36, ad nauseum.

Good info posted here, folks. You are always so helpful!

thrill350z

iTrader: (1)

thanx guys, i mis calculated the price of the car, the car comes to almost $25,000 after taxes and fees then i got the 5yr/100,000 mile war. for about $5,100. So after putting $13,000 down i am paying $302/month with 8.9% interest on the financing

ZBoater

$5,100 for the warranty? That was a typo, right?

thrill350z

iTrader: (1)

lol ya sorry, the warranty was $2,100

ZBoater

Whew, that's what I thought. Thats what I paid for the 7yr, 100K mile Gold Plan.

davidv

iTrader: (2)

How is the purchase coming along?