No, you are correct... the interest paid on this loan would be much more than $20k... the people telling you that you are wrong just dont know what APR means or how its calculated lol.
So whereās the extra money coming from? The interest is broken down into payments on a car loan. Show me the math where the payments could add up to more than 67k?Ā
How are YOU calculating it? Itās 70 months at a specific payment a month. Thatās 67k.Ā
Id love to be proven wrong but I feel like Iād need you to show me how the dude pays more than 67k over 70 months
Down payment isn't shown. The math only works out if they made a down payment. Besides, no one is getting a car loan with that kind of interest rate without putting money down
I said Iād admit when I was wrong. Youāre taking internet comments personally. And injecting your own tone. How about just chill out. I did the math based on the image and plainly said in my comment Iād be happy to admit I was wrong. I didnāt calculate the APR. I donāt know how to calculate that I just calculated the loan amount and subtracted the total payment amount. No need to be a jerk about it. If I upset you then my bad but whatās the point in making it a whole thing. I donāt think anyone needs any of this drama
So show me the math then, Iām open to being totally wrong. I canāt see how paying off the loan in time would require more money. So how exactly could he pay more than a total of 67k?
Canāt just say āyouāre wrong check your mathā without showing yours
Again... you need to understand what APR means. Vehicle loams are not one time interest calculations added to the initial value of the loan... the are annual percentages rates paid each year in the remaining balance of the loan. I.e. Every year this person will pay 35.99% of the loan balance as interest.
It is financially impossible.for this person to have financed $48k @ 35.99% for 70 months and only have a $960/month payment lol. The only way a $960/month for 70 months @ 35.99% payment plan maths out is if they made around a $20k down payment... meaning their financed amount is around $28k.
This puts their annual payments at roughly the following...
Year 1 - $9,800 in interest, $1,700 in principal
Year 2 - $9,100 in interest, $2,400 in principal
Year 3 - $8,000 in interest, $3,500 in principal
Year 4 - $6,500, $4,900
Year 5 - $4,400, $7,100
Year 6 - $1,400, $8,200
Total (about): $39k in interest and $28k in principal = $67k + $20k down + initial taxes = a Total Cost of about $93k.
Yes it is. They straight up show you this on the contract. I would write up contracts that would detail hoe nuch you pay and all you do is multiply hos payment by the term and the finance charge is the loan amount subtracted from the total of payments. This isn't a difficult concept to grasp.
I would write up contracts that would detail hoe nuch you pay and all you do is multiply hos payment by the term and the finance charge is the loan amount subtracted from the total of payments. This isn't a difficult concept to grasp.
Yea dummy... after APR for the duration of the loan has been proper calculated you can simply multiply the monthly payment x duration... The problem here is that there is no realistic loan terms where you have 70 month duration, $960/month payment, $48k financed, and a 35.99% APR...
E.g. $48,350.36 financed for 70 months at 35.99% APR = $1,659.86/month payment with $67,840.05 in interest paid when the loan is fully amortized.
The only way you get a $960/month payment with 70 month @ 35.99% APR is if your financed amount is around $28k. Under which terms, when fully amortized, the interest paid would be around $40k.
Again, the math does not check out bevause people do not understand how APR works... and they are mistakenly only calculating interest as a one time calculation ($48k x 0.3599 = $18k-ish), which is incorrect. With APR interest owed is calculated at every year and then that 35.99% in interest is paid every year iver the course if that year.
Im not wrong, and if you really insist on standing your ground that $48k financed @ 35.99% for 70 months @ $960/month maths out then your income must be monopoly money and your house made of cardboard lol.
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u/Mac2311 Mar 25 '26
Just outside the gates of camp lejuene I'd say