original786

iTrader: (12)

So i got a loan for my Z.. through a 3rd party, beside the dealer ship...since i bought my car from a private owner
so i got approved for a loan for 6.24%...so i made my monthly payment and so on...but i didnt realize every car loan charges interest rate per day...so basically is 6.24% of what my monthly payemnt is. and they charge that every day. for 30days..
so basicaly h alf my payment is going to interest

i asked the customer service, and they say thats how all car loans are??

do yall have any ideas what i should doo...??

hope you all understand?

Swiffer

iTrader: (8)

Thats not right. Using the following numbers:
Car cost: 25,000
Int rate: 6.24
Term: 60 months

The total cost of the car would be 29,166. Your monthly payment would be 486.11. Your financing charges would only be 4,166. This is about 1/6 of the cost of the car.

original786

iTrader: (12)

they said i was on a simple rate,

not fixed rate

does it matter if i got it finance through a 3rd party, (e-loan)?

or is it becuase its a used car, and its an individual owner

Swiffer

iTrader: (8)

Explanation of simple interest:

When money is borrowed, interest is charged for the use of that money for a certain period of time. When the money is paid back, the principal (amount of money that was borrowed) and the interest is paid back. The amount to interest depends on the interest rate, the amount of money borrowed (principal) and the length of time that the money is borrowed.

The formula for finding simple interest is: Interest = Principal * Rate * Time. If $100 was borrowed for 2 years at a 10% interest rate, the interest would be $100*10/100*2 = $20. The total amount that would be due would be $100+$20=$120.

Simple interest is generally charged for borrowing money for short periods of time. Compound interest is similar but the total amount due at the end of each period is calculated and further interest is charged against both the original principal but also the interest that was earned during that period.

A. Hubbard

Refinance as soon as possible!

trackmjt

+1

davidv

iTrader: (2)

I think you are confusing how interest rates are stated. You are paying 6.24 percent APR or 0.52 percent/month or 0.017 percent/day. It doesn't matter how the interest is stated, APR is APR.