Payday Loan Fairy

The bank is financing my wife for 9606.00 at an interest rate of 7.5%. The Term is for 5 yrs (60 months) What should the monthly payments be?

I used to be able to do this, but I think I'm missing something.

Here is how I did my math:

I took $9606.00 and multiplied it times 7.5% and came up with $720.45. Then I added that $720.45 to the $9606.00 and came up with a total of $10,326.45. I then divided the $10,326.45 by 60 (months) and came up with a total of $172.10. Meaning that $172.10 would be my monthly payment.

I went to bankrate.com and used their auto loan calculator and they came up with $192.48

The bank came up with $205.00 (I think they added credit, life, and disability)

So what the HECK am I missing......Please help!

$192.48 is the correct payment.
Using the formula below --
P = principal = 9606.00
I = annual interest rate = 0.075
L = 5 years
Then:
J = monthly interest = 0.075/12 = 0.00625
N = number of months financed = 12 * 5 = 60
Plug all these values into the formula below and you will get the monthly payment. Any insurance, etc. will be added to this amount.

FYI -- How you were figuring the amount is incorrect on a couple of points. First, you only calculated interest for 1 year ($720.45) For 5 years, interest would be more like $3600! However, you don't owe that much interest over the life of the loan, because you keep making payments. Each payment reduces the amount you owe, thus reducing the interest burden on the outstanding principal.

Although the payment amount doesn't change over the life of the loan, how it gets divided up does. Early on, most of your payment goes to interest, while toward the end of the 5 years, most of your payment applies toward principal.

good luck!

2007-06-09 21:26:11 by Crazy Q

autoloans1.info Online Auto Loan,Auto Loan Refinance Calculator,Bad Credit Auto Loan,Auto Loan Insurance,Auto Car Loan,Auto Loan Refinancing,Used ...

According to an auto loan amortization calculator I should have had $126.00 towards interest for the 1st payment. My interest rate is 8.59%. Why so low for the 1st payment? Are they using a different amortization schedule?

Depends when your first car payment is. If you first car payment is due within 18 days of signing your contract all you owe could be less.

2008-01-31 15:35:34 by j r

i just got an auto loan for $8200 with 6.25% APR. sounds good right? well heres the problem. on the sales contract listing the financing details heres whats listed:

term is 60 months, 6.25% APR, $8200 financed. thats well and good.

but heres the swirly part. Finance charge is listed as $4280. this is supposed to be based off APR and amount financed and this value from what ive found is way to high.

this results in my payments being about 48 dollars higher,a nd as a result my total price payed at the end of the of the 5 years is $12480.

the auto loan calculators ive tried online show payments of $159

the contract shows $208 payments. the problem appears to be the finance charge as being calculated way to high. everything ive found
points to it being way to high.

this is supposed to be financed through a third party, a credit union. the dealer was supposed to set things up for me. seeing as the math is completely screwed, but im only getting $8200 financed at 6.25% apr through the credit union im curious as to how this is gonna work out. the dealers contract shows one things, but everything else shows another.

i have a separate sale contract showing the final price of $8200 after tax title and my down payment. so what i owe and the interest rate can't be disputed. but the financing numbers on the other contract are bogus.

of course this is the day after. go me i wait till now to research this crap. :(

This is because your payments are based on an APR of 16.25 and not 6.25. If it was meant to be 6.25 than you must dispute this immediately. However, if it is a high risk loan at 16.25 then you are fine.

2008-11-10 22:24:54 by darkwizard3533

I'm looking at getting an auto loan for maybe around 5 grand. I have a 500 dollar down payment and incredibly poor credit, but a very good credited co-signer.

What sort of interest rates would I expect to pay? The loan calculators I see put a set rate at either 6 or 10 percent, and that seems to be a pretty big difference.

Go to a credit union and get pre approved for a loan. You will receive a pre approval letter.
When you go to buy your car, do not show your pre approval letter to the dealer. Do not let them know how much car you can afford.
You do not want to say "I have 5 grand, help me find a car".
You will not get a discount on that car. Essentially with pre approval you are considered a cash buyer. A cash buyer can get more than 30% off the sticker price of the car.

Be ready to walk away even if you love the car, and got a nice discount. They will call you and offer you a better discount. I have bought many many cars, they always call you and make you a better offer.

If you go to the dealership, they will offer you 0% interest, but of course you will pay much, much more for the car.

Since you only have 10% down, you might have to pay the higher interest rate. Could you get up to 20% down?
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2008-12-06 12:04:03 by Megan S

Hello all

I have a current balance of $19,000 on my CapitalOne auto loan at 6.25% interest. The original balance was $23,578.34.
I am on my 47th month of the 60 month loan. I am currently paying $459.06 per month. My question.

Would I be better taking a 4 year loan from my Thrift Saving Plan (401k-type plan for federal employees) at 3.625% interest at $426.00.00 a month?

I did some estimates using the TSP calculator: http://www.tsp.gov/calc/loan/calculate.html


Loan amount: $19,000 Type: General purpose Term: 4 Year(s) Repayment frequency: Monthly Interest rate: 3.625 Payment amount: $426.00 Number of payments: 48 Total interest (finance charge): $1,448.00 Total loan cost (total payment): $20,448.00


and I don't see any upside to this. I thought I would be saving a lot more money.

shawnj985, Try getting an online auto loan quote. http://www.autoadviceonline.com/Auto-Loans.html The automated questionaire will let you know if you can be approved. It's free and you can get an answer in minutes.

2008-10-05 14:04:41 by shawnj985

I'll be a first time car buyer.
As a kid, I received my first credit cards and got a little carried away, tallying up 4k+ in debt, on top of school loans which tally about 7.5k right now.

I'm in good standing with the school loans, but because I've neglected the 2 credit cards that totaled 4k in debt, my credit score is currently at 600 points.

Well, now that I'm older, 23 in fact, and have a better job, I will be paying off these debts. I started a 3 month payment plan with 1 which will end on the 27th of this month, and on the second credit card, I'll be paying off in two payments. One scheduled for tomorrow, the other scheduled for the 30th of this month.

Now, my car was recently wrecked by a drunk driver (It was parked). It was a hit and run and I only had liability, so I'm out of luck there. I have no down-payment for a new car.

I'm hoping that with a credit score of 600 points, will having proof (letters from the debt-collectors on the scheduled dates of payments), help me with an auto loan?


Also, a side note/question:
I figure my APR's going to be about 15%. Since the debt will be paid off this month, and I need a car ASAP (I need it for work), should I settle for a high APR and simply re-finance when (if) my credit score improves in the next two months?

I'm looking at a 485 dollar car payment with an APR of 15%, which is within my budget according to financial calculators online.

I also plan on sending off 1k dollar payments for the first 5 months. Will explaining this to the loan (Toyota) company help me? Or will they not consider this?
I appreciate the answer, but I would like to clarify the payment. the 485 dollar monthly payment for the car loan factors in the 15% interest rate already.

It's quite within my budget, about 15% of my monthly income, 20% of my take-home. I've taken in to consideration all of my bills.

It's a Scion TC, stripped down with no features. It's got an excellent trade-in value which I plan on doing after 3 years.

Yokimato, Try getting an online auto loan quote. http://www.goodinternetdeals.com/Auto-Loans.html The automated form will let you know if you can be approved. It's free and you can get an answer in minutes.

2008-10-09 22:59:15 by Yokimato