Me too. I was so pissed off when I did my own calculations and the bank told me I’d be paying like $50 more a month than I calculated. I still think it’s bullshit though.
I have a question what if you have a 72 month loan, but instead of paying the recommended amount, you pay twice the amount or more to pay the loan off faster, does that drop the interest rate as well?
Buying my first car and this is so confusing. I don’t wanna mess this up. Nor end up ruining my credit score nor end up on the collection. I haven’t brought it yet.
The 0% interest is interesting. I've read the fine print on advertisement where it says 0% interest and in small print it says an administration fee is charged of $15 per thousand borrowed. It might be best to put a nice down payment and/or pay the sales taxes separate so that you don't finance the taxes. I've seen loan calculators that give you the option to see the loan including the sales taxes or keeping them separate.
@@HonestFinance I think it's an adm fee. So for $10K borrowed it's $150 or 30K borrowed $450 total but the 30K would have 0% interest and just be divided by the months of loan.They probably made you pay it upfront along with the title, registration etc. I've only noticed it on Ford 0% Finance Programs in small very small print at bottom of the offer.
Thats the trick that places like Aarons uses. They don't charge "interest", they charge "lease fees" which is worse. The lump some is applied up front and the equivalent rates can be hundreds of percent. Shady and misleading.
Just found out that after my collision my car was deemed a total loss. I was devastated about it until I analyzed my monthly payment which was $409 a month for 6 years on a $16.5k car with a 21% apr so I was paying $348 towards interest and $61 towards the principal. $12.9k in interest in the life of the loan. Suddenly I’m not so upset about my car getting totaled 😳😂 I definitely got taken advantage of by the car salesman. I guess everything happens for a reason right? I love learning.
21% OMG. hahhaahha you dont have a husband do you lol, its ok be a strong independant women, you dont need no man. now you will learn in the future. (:
@@amandaburleson2035 good one 😂 no I don’t have a husband I went to the dealer with my boyfriend though which is almost as bad 🙈 We’re still young and learning though. It’s funny because if I were you I would’ve read my comment and assumed I was an independent woman who doesn’t need a man too lol
@@amandaburleson2035 I think my biggest regret was not going to the dealer with my dad and step dad because they tried to come with me multiple times but I was impatient and didn’t wanna go to multiple dealers trying to find the best deal when that’s exactly what I should’ve done
@@jasminecontreras7341 its ok, one time i let my gf get into a bad used car deal, but that was on her, because she said " i NEED A CAR NOW"!!!! and im like "its a bad deal but ok", when i was taking pictures of her singing the paperwork i felt so bad she was getting ripped off. she got 15% LOL this was years ago when the economy was good. and she got all the extras like warranty and car alarm etc. i told her i wouldnt do that but she did.. . i feel so bad i treated her so bad... but i told myself. well i cant control her... im not her spouse... we broke up 4 years later.
Thank you for very helpful info. So is it better to get a longer-term loan (72 mo @ 3%) and make extra payments to pay it off sooner or get shorter term loan (60mo @ 2%) and make exact scheduled monthly payments
Ya somewhat. Just take how much you currently owe, multiply it by your interest rate, then divide by that by 12. This gives you current interest that you pay monthly
Hi there, I have a question if you can please help me answer it, so I just purchased my vehicle after leasing it for 35 months, and decided to finance it for 60 months with a 4.60% interest rate. If I decided to pay my entire amount off, does that mean I will also be paying all that interest charges for the next 60 months that the vehicle is financed for?
He could have done better not dying and living forever, atleast we could make sure he is the true god. Religion is a precious and a private matter, stop humiliating your religion like radical muslins..
What if you have really bad credit or no credit at all & just starting to work on your credit? What would a monthly payment for a $25,000 vehicle look like?
I pay a car loan 781.98 a month they only apply 41 .40 to principle and 739 dollars in interest and when I called they told me they charge 19.90 a day interest between payments I was under the assumption it was 26.9 percent annually this is more then a loan shark
I have a question I got a car loan financed 90,293 at 5.74 Apr for 72 months and on my payments it tell me how much it goes into the principal and how much it goes to interest and about 400$ go on interest which according to my math and the loan calculator it should be around 230$ on interest every payment instead of the 400$ is there a reason why it’s so high or maybe I’m doing my math wrong
Something’s off. I’m seeing about $400 for the first year each month in interest. Plug in $90,293 at 5.74% , 6 years in the loan calculator and it’ll run correctly
You said for the life of the loan we will end up paying a little over $1900 in interest. Can you plz share the formula you used to calculate total interest for the life of the loan
Yeah, the math ain’t mathing. I tried plugging in the numbers myself and non of this made sense. I’m not sure that a bank would wait 5 years just to get a measly $2,000.
You said for the life of the loan we will end up paying a little over $1900 in interest. Can you plz share the formula you used to calculate total interest for the life of the loan
I have a question that most people might have! I noticed that my interest and principal amount always changes! Example out of $750 some times my interest would be up to $650 and it always changing
Would l pay less interest if I do biweekly payment instead of 1 payment a month? I just recently bought a car. First payment was full amount but now I’m planning biweekly payments.
My interest rate is 18.66% (I know really high, very poor credit). I've been paying a $615.13 car note every month for about 13 months. Looks like out of $7,996.69 I've only paid $2,580.49 in principle. Paid $5,416.20 in interest rates. How does the math even work. Will someone please help explain this to me because it makes no sense to me at all. Haven't missed a payment or be late on a payment.
I don't understand what you mean... I mean.... seems to me that you explained exactly what's going on. Ok, im no expert, but Since the interest is kinda high, every month you are paying more on interests than what goes to the car's actual payment. So technically every month you pay 416.63 in interest and the remaining 198.50 goes to the car. $416.63 + $198.50= $615.13 Edit: i believe you already get what I wrote up there. So i guess i didnt have to write it. But... they did finance your car for an X amount of years, right? So they already calculated how much you would be paying in interests for those X amount of years (or... X ammount of months), until you pay the car in full. Which is why they are charging you monthly that ammount in interest. If someone else is reading this and I got it wrong, please explain. This stuff is important.
He explained it in another comment. I'm gonna copy and paste it here so that you, or anyone else, can read it, just in case they never get the answer again. "[...] take how much you currently owe, multiply it by your interest rate, then divide that by 12. This gives you current interest that you pay monthly".
I have a question, actually I have a loan of around 8500 dollars and the interest of 14%, can I put like first payment a big amount of money like 5k so it will be less or no in the future? What you recommend
No. They will continue to charge you interest until you pay off the loan. If you pay more interest than what you pay for the actual car... by the end of it, it seems you would have paid more in interest than what you owed for the car. That's crazy.
i just got a Honda hr v and the price was $22,000 i completed everything already and i gave a down payment of $3,000 so it was supposed to bring it down to $19,000 but the principle balance still shows i have to pay $22,000 .. what happened? where did my $3,000 go? im having a hard time figuring this out.. does anyone have an idea? i’d appreciate the help!!
Jason, good video. I only have two questions: 1) Is the Fixed Annual Interest Rate the same as what is referred to as APR (Annual Percentage Rate) ??? 2) I ask the above question because I have an auto loan ($30,480 for 60 Months) where the only rate shown on the paperwork is the APR (7.94). I use that rate to plug into your formula and get $617.14 as the monthly payment. Yet the paperwork of the loan shows the amount as $619.18, which is $2.04 difference (greater). Do you or anyone seeing this comment-post, know why there is a difference? Thanks, John
Yes the Apr is fixed in your case because it’s a 60 month auto loan. Plug in the exact amount you started w and it should be close. There might be slight differences depending on when they started charging interest
Bro that all depends on ur credit and how long ur loan will be . Literally this video doesn’t even talk about that ?? Like u even read the title thats the easiest thing to find out the damn final price that the car will cost is whats hard
That’s why they have early repayment fee to recoup the losses if you would have paid as planned very wicked this should be taught to any person getting in loans
I’m still confused on how the math works out. If you finance a car and end up borrowing 25,000 with a 3% APR over the course of 60months…why aren’t you paying roughly $430 a month? 3% of 25,000 is $750. Why arent you paying off a total of 25,750 over 60 months? Where is your $1953 coming from? Like that’s not even close to 3%. If anything that’s 7.8%. What math entails this “3%” interest
In the beginning of the video he says Interest is applied annually. So from my understanding that means 3% interest of the balance is applied every year, not 3% of the total loan
So in my example is that $750 every year? I know the price of the car will slowly decline, so you won’t be paying as much but, are you paying 3% of the cars value in interest every year?? If so fuck you banks
So at the end of the year you pay the 3% of whatever is left on the loan. 25000/5years is 5000 a year that you’re paying. So after the first year the interest added is going to be the total amount minus what you paid and 3% of that. So 25000-5000 =20000. So yhe total interest so far is 3% of 20000. Then the second year you pay off another 5000 so that leaves 15000. So you pay another 3% of that 15000. The year after that you add interest from 3% of the 10000 remaining until you finish
i just got my first car and financed with Toyota Financial.. after watching this vid, I see how much better it is to make a bigger down payment and go with a 4 year loan instead of a 5 year loan.. Can I go back to Toyota and re-finance? I want to put more down payment and switch to a 4 year instead of 5.
Do you know if Toyota accept outside finance? Was applying for the finance application a standard procedure? Because that was what my husband was told.
Yeah so the dealership said 7000 for the car i put 1500 down and I'm paying 100 a week been paying 4 months and she just told me that I still owe 8000 like wtf????
Yoo I'ma about to refinance my car rn my interest is at 13.94% an got a 475$ monthly payment jst got a offer for 6.24% and 401$ a month 60 month 19.000$ is the amount I owe I got a 2013 g37 with 69000 miles my fico is 705 u think that's a good deal
Yes it’s a much better deal. 6% is so much better than 14%. And when your credit is higher, the best rates are about 3% right now through credit unions.
How much am i looking to pay for a $13k suv with a down payment of 3500 and my score is above 750 after a 32 month loan? i need help to realize what the final price of the car will be from this 3 yr loan its stressing not knowing the sales tax before even buying the vehicle
@@HonestFinance so ur saying no matter if i put 2000 down or 4000 down with the same price as i said $13k then the interest won’t change based on the down payment i give? And just on my credit and loan term
The interest charges will be lower w more down (Sorry for the confusion), and the rate might be lower w more down too, but it’s mostly based on your credit score. But if your the car is $13,000 and you put down $13,000 , you’ll still need to pay taxes based on a $13k car. However, the more you put down, the less you’ll pay in interest over the life of the loan. Hope this makes sense
I need help with this im confused im 19 about to turn 20 and im looking to get a truck but car loans seem confusing to me some explain to me i would appreciate it.!
Hey, Since the rates have gone up could you still be able to get a interest rate below the so called minimum rate? For auto where I live its 3.99% for new cars. You can credit unions that will beat it by 1%. I guess could I get a 2.99% even though it's 3.99% if you refinance with another bank?
2:58 Me learning before I buy and looking at these interest rates like Godly numbers 😂😂😂😂 3% ?? Whoo sheesh I’d love it, looking at 6-14% from 3 different credit unions not even main banks
Hello! New here. Love you channel, very valuable information! So I think I have a somewhat unique situation and I was hoping you (or anyone) could help answer a few questions. For starters, my credit is just under 600 and therefore my interest rate is 17.8% (I know 😮) So, heres where its weird. I had $11k to put down on a car. The loan was $15k. Interest being around $9500. (Again, I know 😢). And its a 6 year loan. Im getting cooked, I know😂 My question is, however, I will soon have the amount of my interest total to pay on the loan. I will be making a $9500 one time payment. How will that affect my payments? Will it completely erase the interest or will my payments just go down? Right now, because of my high down payment, my monthly is $340. Id like to see that down around $250 if possible Sorry for the long comment and I hope it makes sense. Thanks in advance
Yes you are paying interest of the loan based on a daily balance. If u have a 6 year loan . Total interest is $1000 if paid minimum Pymt to the end of the loan. If u pay minimum Pymt then at end of 30 months u paid around 750 bucks of interest already and by that time… the last 30 Pymt cost of interest is only $250! Then not worth to pay off at end of 30 months of the 72 interest
The math ain’t mathing. I tried plugging in the numbers myself and non of this made sense. I’m not sure that a bank would wait 5 years just to get a measly $2,000.
$25k X 3% is $750.. Interest/ Apr= $750... Multiply the total interest by the years of contract. $750 X 5= $3750 The TOTAL price you pay in the end is $28,750... which is great! Only paying an extra $3k on a $25000 car... That calculator is a scam tho! 👆🏾👆🏾 this is how you calculate what you are paying versus how much the car is priced! when people get 18% interest, that $15k car ends up costing you $30k
If you’re going to advertise an app called loan! Just do that!!! don’t act like you know how to calculate interest rate for car loan, you end up wasting people’s time!
Oh my god, I'm in my 30s and I STILL don't get interest and how it works! It seems so fucking complicated! You know what, loans would be much easier to understand if there was no interest lol I'm just too stupid 😔
You have no clue how much you’ve changed my life. I’m almost 30 and am just now learning the intricacies of interest.
I’m 40 and I’m just now learning. You’re ahead of the curve 😉
same here lol
This should be taught in 3rd grade but the USA school system refuses to teach the important things... Defund the usa school system.
Enjoy the video! Here's a playlist to watch more car buying videos if you're interested: ruclips.net/video/rwOcAHTH4Os/видео.html
I was unaware the interest was annual I thought simple meant 1 time this video was tremendously helpful
Glad it helped.
Me too. I was so pissed off when I did my own calculations and the bank told me I’d be paying like $50 more a month than I calculated. I still think it’s bullshit though.
I have a question what if you have a 72 month loan, but instead of paying the recommended amount, you pay twice the amount or more to pay the loan off faster, does that drop the interest rate as well?
It won’t drop the rate, but you’ll spend less interest by paying extra
Meaning you can't pay less of what you need to pay monthly correct. Even if you payed for ahead of time ?
Ya you can’t do that w loans
Buying my first car and this is so confusing. I don’t wanna mess this up. Nor end up ruining my credit score nor end up on the collection. I haven’t brought it yet.
The 0% interest is interesting. I've read the fine print on advertisement where it says 0% interest and in small print it says an administration fee is charged of $15 per thousand borrowed. It might be best to put a nice down payment and/or pay the sales taxes separate so that you don't finance the taxes. I've seen loan calculators that give you the option to see the loan including the sales taxes or keeping them separate.
That’s a good point. I’ve never heard of $15 per $1,000 borrowed. That’s a good chunk on an expensive car
Hmmm great point
@@HonestFinance I think it's an adm fee. So for $10K borrowed it's $150 or 30K borrowed $450 total but the 30K would have 0% interest and just be divided by the months of loan.They probably made you pay it upfront along with the title, registration etc. I've only noticed it on Ford 0% Finance Programs in small very small print at bottom of the offer.
That’s good to know. Thank you for the insights
Thats the trick that places like Aarons uses. They don't charge "interest", they charge "lease fees" which is worse. The lump some is applied up front and the equivalent rates can be hundreds of percent. Shady and misleading.
What is the website or application you’re using ( Loan calculator) ? 3:46
Thanks so much for sharing this knowledge 🙏🏻
You’re welcome
Just found out that after my collision my car was deemed a total loss. I was devastated about it until I analyzed my monthly payment which was $409 a month for 6 years on a $16.5k car with a 21% apr so I was paying $348 towards interest and $61 towards the principal. $12.9k in interest in the life of the loan. Suddenly I’m not so upset about my car getting totaled 😳😂 I definitely got taken advantage of by the car salesman. I guess everything happens for a reason right? I love learning.
21% OMG. hahhaahha you dont have a husband do you lol, its ok be a strong independant women, you dont need no man. now you will learn in the future. (:
@@amandaburleson2035 good one 😂 no I don’t have a husband I went to the dealer with my boyfriend though which is almost as bad 🙈 We’re still young and learning though. It’s funny because if I were you I would’ve read my comment and assumed I was an independent woman who doesn’t need a man too lol
@@amandaburleson2035 I think my biggest regret was not going to the dealer with my dad and step dad because they tried to come with me multiple times but I was impatient and didn’t wanna go to multiple dealers trying to find the best deal when that’s exactly what I should’ve done
@@jasminecontreras7341 its ok, one time i let my gf get into a bad used car deal, but that was on her, because she said " i NEED A CAR NOW"!!!! and im like "its a bad deal but ok", when i was taking pictures of her singing the paperwork i felt so bad she was getting ripped off. she got 15% LOL this was years ago when the economy was good. and she got all the extras like warranty and car alarm etc. i told her i wouldnt do that but she did.. . i feel so bad i treated her so bad... but i told myself. well i cant control her... im not her spouse... we broke up 4 years later.
We’re so proud of you 😇
Thank you for very helpful info. So is it better to get a longer-term loan (72 mo @ 3%) and make extra payments to pay it off sooner or get shorter term loan (60mo @ 2%) and make exact scheduled monthly payments
Stick with shorter. You pay most of the interest in the beginning, so shorter is usually better
So after each payment you make, the interest rate is calculated again as %3 and divided by the months you owe. Am I getting it right ?
Ya somewhat. Just take how much you currently owe, multiply it by your interest rate, then divide by that by 12. This gives you current interest that you pay monthly
🙏🏻
Hi there, I have a question if you can please help me answer it, so I just purchased my vehicle after leasing it for 35 months, and decided to finance it for 60 months with a 4.60% interest rate. If I decided to pay my entire amount off, does that mean I will also be paying all that interest charges for the next 60 months that the vehicle is financed for?
You only pay interest on what you owe, so if you pay it off early you won’t pay any extra interest
@@HonestFinance is it the case with all banks?
All car loans work the same way. You only pay interest on what you owe, so if you pay it off early, the interest will stop accumulating
@@HonestFinance thank you for clarifying. I am taking a loan now and interest is 8.5😭
You’re okay. Just refinance once your credit score goes up a bit
Can someone please tell me the formula to calculate total interest the I will pay for the life of the loan
The math is hard. Get an amortization app and it'll help.
Jesus Christ loves you so much that he died on the cross for you
Why would I kill my son for the sins of others? I am sure GOD IS JUST
@@SuperMz0051 you arent god bro you aint killing anyone
He could have done better not dying and living forever, atleast we could make sure he is the true god.
Religion is a precious and a private matter, stop humiliating your religion like radical muslins..
@@jo5e9h016 he asked something you just said something irrelevant.. Whats going on
@@shaneh5585 its only your truth, rest of us feel different. You could be delusional, we are not. We have a good life to live.
Dude you explained this perfectly
Hey thank you!!
What if you have really bad credit or no credit at all & just starting to work on your credit? What would a monthly payment for a $25,000 vehicle look like?
There are too many variables to know the payment (maybe $150-200 at 10% rate), but go through your local credit union for the best rate
@@HonestFinance I can still go through them if I don’t bank with them?
Absolutely. Go with whomever is the most competitive
@@HonestFinance thank you so much!
I pay a car loan 781.98 a month they only apply 41 .40 to principle and 739 dollars in interest and when I called they told me they charge 19.90 a day interest between payments I was under the assumption it was 26.9 percent annually this is more then a loan shark
I’m sorry. I’d refinance the vehicle ASAP w your local credit union to avoid more interest than necessary
@@HonestFinance I tried that because the payoff was going to be greater then they wanted to refinance we were denied
I have a question I got a car loan financed 90,293 at 5.74 Apr for 72 months and on my payments it tell me how much it goes into the principal and how much it goes to interest and about 400$ go on interest which according to my math and the loan calculator it should be around 230$ on interest every payment instead of the 400$ is there a reason why it’s so high or maybe I’m doing my math wrong
Something’s off. I’m seeing about $400 for the first year each month in interest.
Plug in $90,293 at 5.74% , 6 years in the loan calculator and it’ll run correctly
Did u ever figur it out I was wondering the same
You said for the life of the loan we will end up paying a little over $1900 in interest. Can you plz share the formula you used to calculate total interest for the life of the loan
I used an amortization app to get the numbers quick and easy
This is flat rate or effective rate?
Car loan is flat rate right? It will work out this way like your example?
I base the math off a fixed rate
You didn’t tell me how to do the math you just said “download a loan calculator “ I came to learn the math!
😂 for real
Same here! Lol
Yeah, the math ain’t mathing. I tried plugging in the numbers myself and non of this made sense. I’m not sure that a bank would wait 5 years just to get a measly $2,000.
Yeah this guy is a asshole
You said for the life of the loan we will end up paying a little over $1900 in interest. Can you plz share the formula you used to calculate total interest for the life of the loan
not apy its apr apy is annual percentage yield this refers to interest you receive including compounding factor
I caught that too
I have a question that most people might have! I noticed that my interest and principal amount always changes! Example out of $750 some times my interest would be up to $650 and it always changing
On a fixed loan, that's totally normal. As you pay more towards principle , you'll pay less in interest.
Would l pay less interest if I do biweekly payment instead of 1 payment a month? I just recently bought a car. First payment was full amount but now I’m planning biweekly payments.
You’ll save a little
@@HonestFinance even if it’s a bit it’s still saving. I’m also trying to send to the principal only 1 a month. Not much but something.
Thank you so much for the information ✅
My interest rate is 18.66% (I know really high, very poor credit). I've been paying a $615.13 car note every month for about 13 months. Looks like out of $7,996.69 I've only paid $2,580.49 in principle. Paid $5,416.20 in interest rates. How does the math even work. Will someone please help explain this to me because it makes no sense to me at all. Haven't missed a payment or be late on a payment.
I don't understand what you mean... I mean.... seems to me that you explained exactly what's going on.
Ok, im no expert, but Since the interest is kinda high, every month you are paying more on interests than what goes to the car's actual payment.
So technically every month you pay 416.63 in interest and the remaining 198.50 goes to the car.
$416.63 + $198.50= $615.13
Edit: i believe you already get what I wrote up there. So i guess i didnt have to write it. But... they did finance your car for an X amount of years, right?
So they already calculated how much you would be paying in interests for those X amount of years (or... X ammount of months), until you pay the car in full. Which is why they are charging you monthly that ammount in interest.
If someone else is reading this and I got it wrong, please explain. This stuff is important.
Is it possible to pay monthly only towards principal and then pay off the interest at the end?
No it doesn’t work like that. You can always pay extra towards principle though
no. Every time you make a payment, bank (or lender) will make sure they get their interest first.
I am new to many of these terms. More definitions would have been helpful. Maybe make them visible in the corners of the screen
I used the loan calculator.. am I right by seeing my interest and principal flip flop about 1/4 or so into the loan?
My cuestion is how i can calculate how much its going on interest on each payment, what is the Equation? 😅
He explained it in another comment. I'm gonna copy and paste it here so that you, or anyone else, can read it, just in case they never get the answer again.
"[...] take how much you currently owe, multiply it by your interest rate, then divide that by 12. This gives you current interest that you pay monthly".
I have a question, actually I have a loan of around 8500 dollars and the interest of 14%, can I put like first payment a big amount of money like 5k so it will be less or no in the future? What you recommend
Yes, but call the bank and make sure it’s going towards principal. $5k will save a lot in interest
Thanks jason! Just subscribed.
You’re welcome . Glad the video helped
He said “3%” I wish 💀
I’ve been at 17% since Jan 2022🤦🏽♀️ wish I knew this earlier
So apr charges the principal AFTER the down payment right?
Yes. Whatever the loan amount is charged interest
Monthly payment most of it gos to the interest. Does that mean the interest gonna be paid off before your principal?
No. They will continue to charge you interest until you pay off the loan.
If you pay more interest than what you pay for the actual car... by the end of it, it seems you would have paid more in interest than what you owed for the car. That's crazy.
i just got a Honda hr v and the price was $22,000 i completed everything already and i gave a down payment of $3,000 so it was supposed to bring it down to $19,000 but the principle balance still shows i have to pay $22,000 .. what happened? where did my $3,000 go? im having a hard time figuring this out.. does anyone have an idea? i’d appreciate the help!!
Regestration and tax fees cost big money.
Jason, good video. I only have two questions:
1) Is the Fixed Annual Interest Rate the same as what is referred to as APR (Annual Percentage Rate) ???
2) I ask the above question because I have an auto loan ($30,480 for 60 Months) where the only rate shown on the paperwork is the APR (7.94). I use that rate to plug into your formula and get $617.14 as the monthly payment. Yet the paperwork of the loan shows the amount as $619.18, which is $2.04 difference (greater). Do you or anyone seeing this comment-post, know why there is a difference?
Thanks,
John
Yes the Apr is fixed in your case because it’s a 60 month auto loan. Plug in the exact amount you started w and it should be close. There might be slight differences depending on when they started charging interest
are all car loans the same? I spoke with caravan and they said the interest was on the whole amount
? if I put down 10'000 on 24'000 how much should monthly payment average
Bro that all depends on ur credit and how long ur loan will be . Literally this video doesn’t even talk about that ?? Like u even read the title thats the easiest thing to find out the damn final price that the car will cost is whats hard
Awesome video!! Thank you! Which loan calculator are you using here?
That’s why they have early repayment fee to recoup the losses if you would have paid as planned very wicked this should be taught to any person getting in loans
prepayment penalties aren't seen too much these days, so that's good. But yes, they're not good
I’m still confused on how the math works out. If you finance a car and end up borrowing 25,000 with a 3% APR over the course of 60months…why aren’t you paying roughly $430 a month? 3% of 25,000 is $750. Why arent you paying off a total of 25,750 over 60 months? Where is your $1953 coming from? Like that’s not even close to 3%. If anything that’s 7.8%. What math entails this “3%” interest
In the beginning of the video he says Interest is applied annually. So from my understanding that means 3% interest of the balance is applied every year, not 3% of the total loan
So in my example is that $750 every year? I know the price of the car will slowly decline, so you won’t be paying as much but, are you paying 3% of the cars value in interest every year?? If so fuck you banks
So at the end of the year you pay the 3% of whatever is left on the loan. 25000/5years is 5000 a year that you’re paying. So after the first year the interest added is going to be the total amount minus what you paid and 3% of that. So 25000-5000 =20000. So yhe total interest so far is 3% of 20000.
Then the second year you pay off another 5000 so that leaves 15000. So you pay another 3% of that 15000. The year after that you add interest from 3% of the 10000 remaining until you finish
Very well explained
Thank you very much
What loan calculator did you use?
i just got my first car and financed with Toyota Financial.. after watching this vid, I see how much better it is to make a bigger down payment and go with a 4 year loan instead of a 5 year loan..
Can I go back to Toyota and re-finance? I want to put more down payment and switch to a 4 year instead of 5.
Do you know if Toyota accept outside finance? Was applying for the finance application a standard procedure? Because that was what my husband was told.
How do i know how much is my interest rate?
hello sir i want to buy a and the financed everything is 45000 interest rate is 8 percent how much is my monthly payment for 84 months
Thank you
You’re welcome
Big down payment, longer loan with lower monthly payment but pay alot more every month? Smart or not smart?
That’s great. A lower payment is safer if you run into problems
Another great video!
Thank you
Yeah so the dealership said 7000 for the car i put 1500 down and I'm paying 100 a week been paying 4 months and she just told me that I still owe 8000 like wtf????
Yoo I'ma about to refinance my car rn my interest is at 13.94% an got a 475$ monthly payment jst got a offer for 6.24% and 401$ a month 60 month 19.000$ is the amount I owe I got a 2013 g37 with 69000 miles my fico is 705 u think that's a good deal
Yes it’s a much better deal. 6% is so much better than 14%. And when your credit is higher, the best rates are about 3% right now through credit unions.
I’d probably refinance again in a year and try for 3%
Ok sounds good how many times can I refinance the same car
I don’t think there’s a limit. I’d only do 2 at most (but that’s me)
Yea 2 is perfect thanks for that advice great help bro
They want me to pay 10percent interest rate at the dealer gonna go to a credit union and hopefully get it down
You probably will. Good call
How much am i looking to pay for a $13k suv with a down payment of 3500 and my score is above 750 after a 32 month loan? i need help to realize what the final price of the car will be from this 3 yr loan its stressing not knowing the sales tax before even buying the vehicle
Use a loan calculator like he said & just search up the tax rate in the county you buy the vehicle in
@@josearellano3670 but doesn’t the tax rate all depend on the down payment and cost of the car so its always the same percentage tax rate??
The tax rate will be charged on the car and any add-on’s (like extended warranty). A down payment won’t lessen the tax due, but a trade in will
@@HonestFinance so ur saying no matter if i put 2000 down or 4000 down with the same price as i said $13k then the interest won’t change based on the down payment i give? And just on my credit and loan term
The interest charges will be lower w more down (Sorry for the confusion), and the rate might be lower w more down too, but it’s mostly based on your credit score.
But if your the car is $13,000 and you put down $13,000 , you’ll still need to pay taxes based on a $13k car. However, the more you put down, the less you’ll pay in interest over the life of the loan. Hope this makes sense
Thanks!
I need help with this im confused im 19 about to turn 20 and im looking to get a truck but car loans seem confusing to me some explain to me i would appreciate it.!
Great video, thank you for sharing.
You’re welcome. Thanks for watching!!
Hey, Since the rates have gone up could you still be able to get a interest rate below the so called minimum rate? For auto where I live its 3.99% for new cars. You can credit unions that will beat it by 1%. I guess could I get a 2.99% even though it's 3.99% if you refinance with another bank?
Rates have gone up this year, so the best will be higher. I’d go w a credit union because they’re typically the best
2:58 Me learning before I buy and looking at these interest rates like Godly numbers 😂😂😂😂 3% ?? Whoo sheesh I’d love it, looking at 6-14% from 3 different credit unions not even main banks
Trusted lenders
These dealerships making shit difficult on purpose
Add another video
Hello! New here. Love you channel, very valuable information!
So I think I have a somewhat unique situation and I was hoping you (or anyone) could help answer a few questions.
For starters, my credit is just under 600 and therefore my interest rate is 17.8% (I know 😮)
So, heres where its weird. I had $11k to put down on a car. The loan was $15k. Interest being around $9500. (Again, I know 😢). And its a 6 year loan. Im getting cooked, I know😂
My question is, however, I will soon have the amount of my interest total to pay on the loan. I will be making a $9500 one time payment. How will that affect my payments? Will it completely erase the interest or will my payments just go down? Right now, because of my high down payment, my monthly is $340. Id like to see that down around $250 if possible
Sorry for the long comment and I hope it makes sense.
Thanks in advance
Ty
Yes you are paying interest of the loan based on a daily balance. If u have a 6 year loan . Total interest is $1000 if paid minimum Pymt to the end of the loan. If u pay minimum Pymt then at end of 30 months u paid around 750 bucks of interest already and by that time… the last 30 Pymt cost of interest is only $250! Then not worth to pay off at end of 30 months of the 72 interest
The math ain’t mathing. I tried plugging in the numbers myself and non of this made sense. I’m not sure that a bank would wait 5 years just to get a measly $2,000.
I got a car loan and and I just realized it's veriable rate , I got wrecked
It’s okay. Just refinance w your local credit union asap
No words after that😮
My new idea veterans get discounts
Thanks
This is not correct because cars do not come with an interest rate they come with an APR you don't pay a 3% for 25000 you pay 3% APR every year
$25k X 3% is $750..
Interest/ Apr= $750...
Multiply the total interest by the years of contract. $750 X 5= $3750
The TOTAL price you pay in the end is $28,750... which is great! Only paying an extra $3k on a $25000 car... That calculator is a scam tho! 👆🏾👆🏾 this is how you calculate what you are paying versus how much the car is priced! when people get 18% interest, that $15k car ends up costing you $30k
As you pay down the car, you pay less interest , so multiplying by years is more than you’ll actually pay
@@HonestFinance so what equation do you use ? I was thinking like buddy up there as well .
So you said this was easy to figure out. But you have to use a loan calculator lol. 😂
These numbers literally is my loan 😂 25K with 3% interest rate and my car note really $449 I pay $500 tho..
That’s funny. Spot on numbers I guess :)
For beginners? Yet you did not explain what “principal” even means…
What determines your interest rate?
Mainly your credit score and income
its APR, not APY
If you’re going to advertise an app called loan! Just do that!!! don’t act like you know how to calculate interest rate for car loan, you end up wasting people’s time!
Interested is legal extortion
Bx1
Oh my god, I'm in my 30s and I STILL don't get interest and how it works! It seems so fucking complicated! You know what, loans would be much easier to understand if there was no interest lol I'm just too stupid 😔
Ahhhh....of course....a video on how to use Google
RIght its a bunch of double talk... got it
it is not explained you just reference a loan calculator on a website?? lol
People scroll on the most useless video on here ... no maths unless u download an app all about his affiliation 👎👎👎
the app is free. Just trying to help.
3% apr 😂
You’re so handsome
this is a useless video, it doesn't even answer the question of how these numbers work!
Good god! You want the lowest interest rate you can get 🤦🏻♂️ I just wasted 7 minutes of my life!
Fraud😂
what's the fraud?
Thank you!
You're welcome. I hope it helped