Vehicle Financing and APR - Interest Rates, FICO Credit, and Loans
ฝัง
- เผยแพร่เมื่อ 7 ม.ค. 2015
- In this episode of Proctor Car Tips, Will answers frequently asked questions about vehicle financing and vehicle APRs to help you purchase your next car. Will discusses interest rates vs. apr, average interest rates, FICO credit scores, auto loans, mortgage and student loans, and financing new vs. used cars.
Please leave comments below if you have any more vehicle financing questions.
Learn more at,
www.proctorcars.com
Vehicle Financing and APR - Interest Rates, FICO Credit, and Loans
• Vehicle Financing and ...
Learn more about common car issues, new car features, car parts, car financing, or new cars on the Proctor Car Tips Channel. These helpful car tip videos will help you learn more about car parts, how to fix common car issues, purchasing a new vehicle, trading in your old vehicle, understanding new car features, or virtually road testing the newest cars on the market.
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Wow , I learned more from this guy in 10 minutes than dealing with fiance institutions for 40 years . Incredible
I’ve wasted over $1300 on Lexington law and got poor results with removing items from my credit report..I was able to remove all the negative items after contacting spacewebexperts@ gmail com and raise my credit score to 800+, he was able to clear my credit card debts and student loans
so true lmao
Dude, this was taught like a university-level economics class. Thanks so much!
I have viewed over a dozen similar videos on car buying but this guy is on point and gets to the real stuff quickly awesome
best video and explanation I have ever found. thanks a million. BTW, keep on posting more videos please.
I have been searching high and low; this is the best video by far. Great job! Thank you
Thank you so much. I’ve already shared your video. Please keep your information coming. I’ve already subscribed to your channel.
Hey Will, you ever thought about being a HS Math & Finance teacher! I had one who did it just as a fill-in and wasn't too motivated about it. You broke it down!
Wow this is exactly all the information I needed. Thank you!
Great video and lots of useful information, Thanks!
The perfect way to teach, Math! Thank you for this information. It served me a lot.
Excellent video my dude, thank you
Just found your video and it was so easy to understand for someone like me. You gave extra nuggets of good info. I am trying to teach my kid these things as well. Thank you for educating.
Very helpful indeed !
You just answered most of my questions. Thank you!
BEST VIDEO 100%, THANK YOU!
Very good tips. This guy is on top of it.
Extremely informative Thank
Wow, so glad that I found this, thanks - liked
Great Vid Thank you for the info
Thanks for your explanation. You are great.
Excellent video!!!
perfect video brother. thank you
One of the best lessons I have ever seen on Car financing. You really break it down including tips on how to save money outside of just your car purchase. Sharing with my kids to help promote their independent finance litteracy :-)
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super helpful, awesome!
I have read that many personal finance experts say you can raise your credit score quickly by paying down all your credit cards until you are only using 25 or 30 percent of your line of credit. And then you keep your credit score up by never using more than 25 percent of your available credit line on any one credit card.
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Thank you very much that was really great
Thank you I learned a lot!
Excellent!!!
Nice job bro!
Thanks Will!
Thanks for clarifying.
Straight to point and 💯
thank you for the knowledge
Thank you very much bro I learn a lot
It's a good video but he did get one thing wrong: If you have cash in hand, it doesn't necessarily make sense to finance the car.
Yes, if you put 20k on your mortgage immediately, you will save a lot of interest over time.
But unless the interest rate on the home is higher than the APR on the car (which is usually not going to be the case), you will save even MORE money by paying cash for the car, and THEN taking whatever money you would have spent on the car payment, and adding that to your mortgage payments.
Ditto if you are considering student loans vs a car loan. If you want to minimize your interest payments over time, you should be paying off your highest interest rate loans first.
And in the case of the car, because you haven't yet taken the loan, you're avoiding the entire APR, not just the base interest rate.
And all of this is without even getting into the subject of whether you should even be paying down your loans early at all. If you can get a better rate of return by investing that cash than the interest payments you'd avoid, then you should invest instead. But that's a more advanced topic. It's much simpler just to pay down the highest interest loan first.
thevoxdeus Indeed
Thanks in a BIG WAY
Thank you
wow this is awesome!
can you please tell me if i already have an auto loan and what are the likely chances of getting another auto loan like a second auto loan. also not having used the maximum approved loan from the previous loan amount.
thnaks for informative video!
Thank-you for watching, we are adding new videos monthly with information you can use while deciding on how to finance your purchase of your next vehicle.
Thank u
Great video
Good evening,
I am a private lender. I offer loans to people who have
need.
I do not take any fees in the Avence I say well I do not take any fees to the Avence
My interest rate is 2%, and I have to my credit € 35000000 available for
solve your financial problems.
If you are interested please contact me and let me know
the payment amount and the repayment period you have with
your loan. Here is my email: alexendraalex23@gmail.com
I found a shortcut. If you divide the total amount financed by 2, the first 2 digits equal very close to the amount per every 1% in interest.
20k × 60 months = 333.33 at 0%
20 ÷ 2 = 10 so add 10 for every 1% interest.
20k × 60 months = 353 at 2%
Does the bank have the option to choose between principle and interest?
Car dealerships make so much money on the finance office they hate people who pay cash for the car.
What credit score do you need to have your payments on a car with ford credit?
super dope video bro
Is there a formula for me to find only the interest rate on the loan?
I'm a victim of predatory at a car dealership lending I'm a senior in California what do I do
you didn't explain. where you. got the 19-25 rate? where did that come from?
I worked for 15 years then I quit to retire I have decided to go back to work ,I want to order a maverick in july and I will be going back to work in July by the time I order and the maverick arrives 7 or 8 months later I will have 8 months on my job ,I also have a 800 credit score and I will have at least a 10000 dollar down payment. Question is will I be able to purchase this maverick when it arrives at the dealership. Please reply
that was the best video,,, now i neded to ask. shouls i get a new truck lol
How dose car finance work in America we see programs in the UK about repo firms turning up and saying the person hasent made a payment for x months. Here we set up payments from our bank to the finance company that is paid automatically every month is this the same in America?
Tom Mabon Repossession means you haven't paid on your auto loan for over 180 days. After that the finance company writes it off as a loss and takes the car they actually purchased untill its been paid off as collateral. This puts a major ding on your credit and your chances of getting another auto loan is slim to none.
I once tried a dealership and they ran my credit with different banks in less than a week. I had to wait 2 years to remove them. Over 10 inquiry’s
Multiple inquiries over a limited period of time essentially count as one inquiry in the credit score. They will all show up on the credit report which is not the same as a credit score.
I graduated High School and I don't understand... wtf! will have to study the whole interest deal into more detail...
Text book tactics will show you that same compound interests regarding how to calculate..... That TH-cam is just as good as this dude....man both taught me a lot..... Also go to math antics...they break math down in a simple way also.... Good luck...... appreciate. This proctor dealership
Would you recommend buying a car with 100% downpayment, if you don't have any mortagage or any other loan for that matter?
Do you have any type of established credit? If you have a good credit score with no room for improvement, I don't see any issue with paying 100% downpayment. But if you don't have any established credit, it would make sense to use part of the money you have saved up as a good downpayment and pay off the rest. This way, you kill two birds with one stone: you get the car and build up your credit while you are at it.
A 100% down payment is not a down payment. It is a cash purchase.
Whether to finance or pay cash depends on various criteria. Different for every person.
With good credit, financing is often best. At a minimum, having a car installment loan showing "paid as agreed" does wonderful things for your credit score.
Sorry, I'm confused. How does he get "48= $23-29" ? Can someone explain please.
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These things need to be taught in school ...
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if you owe 10.000 on a a existing carloan can you get a second loan if you have good income and owe 4.000 on credit cards or should I pay off the credit cards frist
I seen you should pay off the credit card first cause that'll put you way more upside down adding that 4K.. Think smart
Talk about mis-managing your money, scary....
I spend 30 out of 500 credit, 6% utilization, and im getting a used 2011 car with 3000 down payment on a 9,000 dollar car....
Well there is something we calculate called DTI, debt to income. We are going to look at your credit cards and all your the things you pay a month, if it exceeds, in your case (4,000 x .30-.45) [what you multiply it by depends on the bank, some banks are quite conservative and do up to 45%) to be sure, I multiplied (4,000 x .45) = 1,800, your debt cannot be higher than 1,800.
To see if you qualify for a second car, we’d have to read your credit. Based on income, it’s plausible. We have to see how you’re doing your car payments, CCCCCCCCCCCCC or you’re slacking.
If you don’t qualify, you can always get a co-signer. XOXO, or say the car isn’t yours.
I'm looking to buy a car at 30k. Will I be approved for a 30k loan? 1 year credit only. 2 cards Looking to down 10k to 15k
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If I put a 10k dollars downpayment in a car loan do I have to declare that money???
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How do you even begin a credit history if you never had one?
Admiral Ackbar Prepaid credit cards. I started with $300 of my own money. You pay interest just like a credit card even though it’s your own money then within 6 months offers will come in. Read the fine print and apply for the ones that best suit you. In 3 years I went from 300 to 15000. 2000 being my own money. Never make a late payment and only use the cards as a last resort; catch 22....
HOw can I remove Inquires?
Daisy John contact the creditor since you cant open a dispute. They go away in 1-2 years depending on the situation
I got $22,500 2017 Chrysler 300 used, I purchased this car, they told me my score 608, is it legal to charge me more than 14% my down payment was 495 for 36 months to finance $ 15, 780 is that legal, I purchased this car 4 days ago please get back to me ASAP thank you very much for this video
How about you quit being a fucking bum and pay your credit cards. Then you can afford to put more that $495 down on a car. Then you won't get stuck with a 14% APR on a turdass $22,500 car loan.
PewterC5FRC Bro, why so hostile?
What state are you in? Here in California, there is up to 28% IR. And you have a mediocre credit, you get 12-16% interest in your range.
Go to a credit union and finance through them
How come Auto traders online calculator shows only 233$ monthly payments of 4.99% of interest rate. Initial cost of car is 12345$, with zero down payment and 60 months term.
and if I use this formula, monthly payments is 3 times more than what online calculator shows. Here's below detail :
2016 Honda Accord - COQUITLAM
Price $12,345 Customize Payments $233*
Monthly 60 , Interest rate 4.99 %
Down payment $0
Estimated Payments Provided by autoTRADER.ca - $233 Monthly *
Financed amount- $12,345
Est. cost of credit- - $1,630
Est. total- $13,975
How is the monthly payment 3 times what the online calculator shows?
The monthly payment on this loan is $233. Using whatever calculator you may choose.
William Vann lol. I know, But instructions shown in video give much more amount.
@@shakachahal Lol, such insight. And the monthly payment is still $233.
volume of this video is extremely low
sound is sooo bad..
If the APR is the "true cost" of the loan, why is the "interest rate" even relevant? I'm confused 😔
+TheLifeOnHigh Thanks for the question! Here is the response from our Finance Director, we hope it helps you!
The amount of interest paid is based upon the interest rate. hence the correlation between interest and interest rate. The APR or Annual Percentage Rate also takes into consideration fees charged by the lending institution.
For example:
A $20000 5 year simple interest auto loan
bank 1 gives 2.99% interest rate with no bank fees, total finance charges are $1587.25 and the effective APR is 2.99, same as the interest rate.
bank 2 gives 2.99% interest rate with a $150 bank origination fee, now total finance charges are $1749.15, and the effective APR is 3.29. The reason the total finance charges are more than the $150 bank fee is because you are charged the 2.99% interest on the bank fee as well as the $20000 principal. This is why interest rate becomes relevant, it is the rate at which all fees and principal balances are figured to calculate finance charges.
The reason interest rate is relevant is many banks, or dealers, will advertise a certain interest rate, but not the effective APR. That way they can advertise a lower number. If you are given an interest rate quote, you need to ask the effective APR to figure the true cost of financing.
Why is the interest rate relevant? Because that is how they will figure your finance charge, based upon the interest rate. Banks cannot tally total finance charges based upon APR. APR is just the corresponding rate with fees included.
-Will
Gᴇᴛ Рᴀʏᴅᴀʏ Lᴏᴀɴs Fᴀsᴛ ᴀᴛ: twitter.com/fb630e10352cbae6a/status/822777246943326208 Vеhicсlе Finаanсing aаnd АPR Inteerest Rаtes FICO Credit аааnd Lоans
I dont get it either
U did math wrong
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