Help Used Car bought?

Question

I bought a Honda Civic Hybrid. i have a question on: The APR is 14% Finace Charge is 9159.45. The Amount Finaced is 18611.67 The Total Of PAYMENTS IS 27771.12 . . ITs going to be a five year payment plan. THe question what do is the exact amount i have to pay.

Answer 1

Well, the math doesn't add up, assuming you have a simple interest loan. If your amount to finance is $18,611.67, then at 14% interest, your total interest should be $7,371.99, for a total of payments being $25,983.66 with monthly payments being $433.06.

Simple interest loans have a daily amount which is added to your balance, so the earlier you pay off the loan, the less interest you will pay. I would really look into the contracts where it says "Truth in Lending". I will give you a link of an amortization schedule for your loan. Good luck and I hope this helps.

http://www.bankrate.com/brm/auto-loan-calculator.asp?unroundedPayment=418.82851528897754&loanAmount=18611.67&nrOfYears=5.00&nrOfMonths=60&interestRate=14.00&startMonth=10&startDay=21&startYear=2007&monthlyPayment=+++++%3D%3D%3D%3E&showAmort=Show%2FRecalculate+Amortization+Table&monthlyAdditional=0&yearlyAdditional=0&yearlyAdditionalMonth=10&oneAdditional=0&oneAdditionalMonth=10&oneAdditionalYear=2007&paidOffDate=Nov+21%2C+2012

Answer 2

They tell you the total amount you'll have to pay if you make the minimum payments is $27771.12

Monthly payments should be around $470.70

If you make higher payments you'll pay it off earlier and get charged less in interest and pay it off sooner.

If you have very good credit, I would consider going to a credit union or a bank and see if they can offer you a better interest rate. Many credit unions can offer 9%-11% interest on used cars and could bring your payments down.

Answer 3

With all due respect, this is the kind of question you should asking before you buy the car, not after you have signed a purchase agreement. 14% is a tremendous interest to pay on a vehcle for five years. Look at it this way, 1 out of every 3 dollars you spend on this car will be for interest.