I bought my Mazda in 2010 at 0% interest, and I paid it off in 2013, and I’m still driving it. I’m at 115k miles now at almost 14 years. It’s still running and looking great! If you buy new, 0% interest is the way to go if you can get it!
Simple interest is best. Every month you pay interest only on your remaining principal balance. So each passing month, less goes toward interest, more goes toward principal. Performing a an extra principal payment further reduces the amount of interest you are paying.
If 3% interest on $20000 doesn’t mean $600 total interest, then please explain how much of the $359 monthly payment would be interest vs how much would be principle based on the assumed 3% interest, and how then is that calculated?
calculate the EAR (Effective annual rate) and then use Present Value of annuity formula with EAR instead of APR and you’ll get the total amount (principle + interest)
What is the interest rate of this year if they have a 600 credit and try taking out a used car from a dealership with a 2 year payment plan and the car is 14,000 ? ??
I was told w being right under 700 & the 2k I’m gone put down on a 4th gen Lexus GS350 Base/F Sport.. I work in sales at a Honda dealership as the photographer so I learned the market fast & was told by a salesman.. if I hypothetically was looking at cars at 25k.. I’d be looking at high 4’s low 5’s for the note.. I’ve been pre-approved for 10% for up to 32k.. but the car itself out the door price max like 20/21k estimated 220/250 for full coverage ins. Don’t need a new car, but wouldn’t mind nice RWD Toyota as my 1st! That actually keeps the value as I’m paying it.. plus maybe i negotiate down my pre-approval
Genuine question, debating getting a £20,000 loan for a car over 5 years, the interest is £23,250 over that time, if I can pay the loan off in less than 2 years will the interest go down to close to £20,000
So I’ll looking to purchase a truck it’s $53k they want $6k down and $800 a month for 84 months($67,200)an then you add the $6k it come out to $73,200. I’m guessing the interest is about $20k? What can I do long run to bring that down? Should I refinance? How would I go about it?
@@garrettgrissom1274 I ended up not buying it, I got something else with much less down and a lower monthly payment, it’s not as big as the X7 but it’s the X5 M50i
Finance the truck for 48 months and also bring your down payment up to 20% of the total purchase price. You will have a larger per month payment but you won’t be paying $20k in interest throughout 84 months.
Wow I got screwed first time buyer fresh credit of only 5months at 698 fico. I'm paying 12.51% interest at a 377.10c car payment. I forgot how many months I believe 72months.
My only question. Will my credit score be boosted while paying off my interest an into the car. I wanna save a thousand dollars will I have the option to pay on principal. Over paying on the car payments. Edit** I wanna save a thousand every 3-4 months an pay it to my principle is that an option or will it always be the total loan an interest grouped together.
My loan in the beginning was for 316k originally and after paying $16k and the loaner locking my rate at 5.99% with 9k they now say that I still will be owing $316k and they asked for another $5k because they say the closing cost are $10 k so we added those 5k to the loan and now they say the loan amount I will be owing at the end will be $321k because of a n FHA interest. Does this makes sense to you? You are a professional and know more for sure. This is for a new construction house and I am about to sign final closing documents and will appreciate a response as soon as possible. Thank you!
Translation: a 3% annual percentage is 0.25% per month. Interest on your first payment on a $20,000 loan is 0.25% or $50. In this example, $50 would be interest, and 309 would be knocked off of the principal, putting the new principal balance at 19,691. Repeat 19,691×0.25% = $49.22 of your next payment will be interest.
@@antagonist561 This means they need to save up for it. If they can’t afford it, that’s okay, there’s nothing wrong with that. For years, I cycled, took public transport, or even walked to all my destinations. There’s no way I will put myself back into debt position.
@@antagonist561 This means they need to save up for it. If they can’t afford it, yet, and that’s okay, there’s nothing wrong with that. For years, I cycled, took public transport, or even walked to all my destinations. I rather to do that over putting myself into in-debt position.
For godly sorrow worketh repentance to salvation not to be repented of: but the sorrow of the world worketh death. (2 Corinthians 7:10) Let the wicked forsake his way, and the unrighteous man his thoughts: and let him return unto the LORD, and he will have mercy upon him; and to our God, for he will abundantly pardon. (Isaiah 55:7) For the wages of sin is death; but the gift of God is eternal life through Jesus Christ our Lord. (Romans 6:23)
I got $383 for a payment on this example. How’d he get 359.37? 20,000*.03=600; 600/12= $50 interest per month; 20,000/60= 333.33; 333.33+ 50= 383.33 Btw, I’m not criticizing your math, just curious how that works.
The amount of interest decreases each month even though the payment stays the same. The reason for this is because you only pay interest on the amount of the loan but each month you're paying it down little by little so the loan amount decreases a little and so does the interest.
I bought my Mazda in 2010 at 0% interest, and I paid it off in 2013, and I’m still driving it. I’m at 115k miles now at almost 14 years. It’s still running and looking great! If you buy new, 0% interest is the way to go if you can get it!
What was your credit score ?
What does this have to do with the video though? Nothing
@@brisson182then why comment on it. negative nancy
This was 2010 wont happen again gang😭
Yeah I got mine in 2012 at 1% for $21k and paid $700 in interest
Simple interest is best. Every month you pay interest only on your remaining principal balance. So each passing month, less goes toward interest, more goes toward principal. Performing a an extra principal payment further reduces the amount of interest you are paying.
Does this apply to bank personal loans? What’s the best way to get a loan for an older truck?
If 3% interest on $20000 doesn’t mean $600 total interest, then please explain how much of the $359 monthly payment would be interest vs how much would be principle based on the assumed 3% interest, and how then is that calculated?
Who gets 3% on a used vehicle? BECU current rate starts at 6.99%.
They used to be low but yes, rates have risen. You can thank our government. 😎
Mines 5.99
Mines 3.9
I don’t know how I went from 18% to 3.6% from a refinance but im happy I did. I went from Santander to velocity credit union. This was 2 years ago
Got financed with the dealership through Region bank at 9.6% in 2018. Refinanced in 2021 and got 🥧… 3.14% 😉
can i ask, what makes the payment got decreased?
payments don't decease, but the amount going towards interest does.
So, if I owe $20,000 on a car and $7000 is interest. Can I just pay the principal ($13,000) to pay off my car? Or do I have to pay the interest?
you'll have to pay the interest too but usually it's not displayed like that.
So if someone was to ask what is the TOTAL amount that was paid to interest in the life of the loan, how do I find that out?
calculate the EAR (Effective annual rate) and then use Present Value of annuity formula with EAR instead of APR and you’ll get the total amount (principle + interest)
When you can get a low interest HELOC and buy the car with the HELOC. That way you’ll pay simple interest. Saves a ton of money.
I still don’t get it? How am I paying 7000 on a 3 percent car loan of 23000?
You’re paying the interest balance and not the “actual” balance. Practically just like a tax just for taking long to pay lol
th-cam.com/users/shortsyKWcS1o3yag?feature=share
Wouldn’t a $7000 interest for a 23,000 dollar be 30% and not 3%???? You’re talking 30%- 1/3 of the overall payment
It would be 690- rounded up to 1000 lol
Why not jus save up some cash and buy a used car? Then you wouldn't have to make a payment every month
What is the interest rate of this year if they have a 600 credit and try taking out a used car from a dealership with a 2 year payment plan and the car is 14,000 ? ??
couldn't tell you.
😭😭 damn im tryna find out right now.
@@TravisSickleexamples?? 😭plz
@@Niqu33nits gonna be like 20% 😭 i have a 760 n i got 15% int rate 💀
I was told w being right under 700 & the 2k I’m gone put down on a 4th gen Lexus GS350 Base/F Sport.. I work in sales at a Honda dealership as the photographer so I learned the market fast & was told by a salesman.. if I hypothetically was looking at cars at 25k.. I’d be looking at high 4’s low 5’s for the note.. I’ve been pre-approved for 10% for up to 32k.. but the car itself out the door price max like 20/21k estimated 220/250 for full coverage ins. Don’t need a new car, but wouldn’t mind nice RWD Toyota as my 1st! That actually keeps the value as I’m paying it.. plus maybe i negotiate down my pre-approval
300 000 dollar loan from gov 0.6 miss payment intrest and 400 minimun bi month return deposit and expexted 10, 000 benifit 😊
Genuine question, debating getting a £20,000 loan for a car over 5 years, the interest is £23,250 over that time, if I can pay the loan off in less than 2 years will the interest go down to close to £20,000
Redo your calculations lol. Interest def isn’t that much
No the £23,250 is total the interest is £3,250
Your paperwork will have details Of early repayment penalties. Yes paying early you can be charged for loss of interest by the lender.
So I’ll looking to purchase a truck it’s $53k they want $6k down and $800 a month for 84 months($67,200)an then you add the $6k it come out to $73,200. I’m guessing the interest is about $20k? What can I do long run to bring that down? Should I refinance? How would I go about it?
Don’t buy the truck lol
@@garrettgrissom1274 I ended up not buying it, I got something else with much less down and a lower monthly payment, it’s not as big as the X7 but it’s the X5 M50i
Finance the truck for 48 months and also bring your down payment up to 20% of the total purchase price. You will have a larger per month payment but you won’t be paying $20k in interest throughout 84 months.
@@garrettgrissom1274 I didn’t buy it. lol. It was just to much.
@ I just went through basically the same thing is why I said not to buy lol. Glad you thought it over, it was just waaay too much financial pressure.
Wow I got screwed first time buyer fresh credit of only 5months at 698 fico. I'm paying 12.51% interest at a 377.10c car payment. I forgot how many months I believe 72months.
My only question. Will my credit score be boosted while paying off my interest an into the car. I wanna save a thousand dollars will I have the option to pay on principal. Over paying on the car payments.
Edit** I wanna save a thousand every 3-4 months an pay it to my principle is that an option or will it always be the total loan an interest grouped together.
Me to first car at 19 was paying 21% interest 399 I refinance a yr later with a credit union 4%interest 220 it’s paid off now 🎉
@@Benzinvest good for you. So pay it for about a year an go refinance with a credit union
@@Benzinvesthow do you get into credit unions?
@@limbogt747it's like opening up a bank account. The only difference is that credit unions are better than banks but have fewer physical locations.
I had an auto loan from credit acceptance, Made perfect on time payments for 5 years from May 2013 - Oct 2017, How can I leverage that?
I don't understand this? but currenty 5.99 up
My loan in the beginning was for 316k originally and after paying $16k and the loaner locking my rate at 5.99% with 9k they now say that I still will be owing $316k and they asked for another $5k because they say the closing cost are $10 k so we added those 5k to the loan and now they say the loan amount I will be owing at the end will be $321k because of a n FHA interest. Does this makes sense to you? You are a professional and know more for sure. This is for a new construction house and I am about to sign final closing documents and will appreciate a response as soon as possible. Thank you!
I can’t validate here and without seeing it but you should look it over with a pro if you’re uncertain.
Translation: a 3% annual percentage is 0.25% per month. Interest on your first payment on a $20,000 loan is 0.25% or $50.
In this example, $50 would be interest, and 309 would be knocked off of the principal, putting the new principal balance at 19,691. Repeat
19,691×0.25% = $49.22 of your next payment will be interest.
that's not exactly how it works but sure.
@@TravisSickle how much would the interest be in the first month of a $20,000 loan?
Just buy your first car with full cash, best decision ever. 🥂
@@zhennyboy6056 not many people can buy cars in cash bud 💀💀
not many people can buy a car in full cash buddy ☠️☠️
@@antagonist561 This means they need to save up for it. If they can’t afford it, that’s okay, there’s nothing wrong with that. For years, I cycled, took public transport, or even walked to all my destinations. There’s no way I will put myself back into debt position.
@@antagonist561 This means they need to save up for it. If they can’t afford it, yet, and that’s okay, there’s nothing wrong with that. For years, I cycled, took public transport, or even walked to all my destinations. I rather to do that over putting myself into in-debt position.
Where did you get 359.37
Bro, I thought I was tripping hahaha
I though you have to pay interest before you pay the original amount as a priority.
that's true but I'm wondering what made you think I was saying otherwise.
Okay well ill pay a deposit and cover the interest to start with
For godly sorrow worketh repentance to salvation not to be repented of: but the sorrow of the world worketh death. (2 Corinthians 7:10)
Let the wicked forsake his way, and the unrighteous man his thoughts: and let him return unto the LORD, and he will have mercy upon him; and to our God, for he will abundantly pardon. (Isaiah 55:7)
For the wages of sin is death; but the gift of God is eternal life through Jesus Christ our Lord. (Romans 6:23)
I got $383 for a payment on this example. How’d he get 359.37? 20,000*.03=600; 600/12= $50 interest per month; 20,000/60= 333.33; 333.33+ 50= 383.33
Btw, I’m not criticizing your math, just curious how that works.
pensé que era sobre el caso de loan
3% (a year) > For 5 years
3% x 5yrs = 15%
.15 (15%) x $20,000 = $3,000
$20,000 + $3,000 = $23,000 total after interest?
thanks for sharing.
@@JalantaTrades compounding interest, my friend. You learned this in 5th grade. The formula is a lot more complex than I=PRT
Hey that’s my car payment lol
It’s called….I learned absolutely nothing from this video.
ayudame
American problems
You should never explain anything. Ever.
All designed to screw you folks
I’m so burnt I pay 29.99 interstate rate on my car loan
@@Mmino07 bro what????
and life insurance that's no interest rate
huh?
So with those numbers what’s the actual interest in real numbers that you would be paying?
The amount of interest decreases each month even though the payment stays the same. The reason for this is because you only pay interest on the amount of the loan but each month you're paying it down little by little so the loan amount decreases a little and so does the interest.
@@TravisSickleyes but the problem is you pay way more than 3% over the duration of the loan, making 3% a decieving number
Your video is cut ahead start it again
you can click it to watch full video.
lol he’s not even explaining it right
Amortization
Dude it’s called an amortization schedule
that is true. dude. 😎
Can I have a mark tow on loan, taxi