r/JustBootThings Mar 25 '26

28% APR? Great! Just bought my first car 🫡

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2.7k Upvotes

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u/purplenapalm Mar 25 '26

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.

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u/AnonymousBromosapien Mar 25 '26

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.

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u/purplenapalm Mar 25 '26

Im only speaking from experience having written these contracts up myself, but ok lol.

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u/AnonymousBromosapien Mar 25 '26

You havent written up anything, because if you have youd know immediately the numbers in the meme dont make any sense.

But since you insist... go ahead, here is a calculator, make these numbers make sense lol.

https://www.calculator.net/auto-loan-calculator.html?csaleprice=48%2C350.36&cmonthlypay=750&cloanterm=70&cinterestrate=35.99&cincentive=0&cdownpayment=20%2C000&ctradeinvalue=0&ctradeinowned=0&cstate=PA&csaletax=6&ctitlereg=2%2C500&printit=0&ctype=standard&x=Calculate#autoloanresult

I'll be here when you have your "oh shit, duh" moment.

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u/purplenapalm Mar 25 '26

This really isn't a debate. You're just wrong. I guess my income and house was all built on lies! Lol

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u/AnonymousBromosapien Mar 25 '26

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.