Full Version: Maybe it is just me..
I financed a car in March 2004 for $8,595 at an interest rate of 24% (I know... stupid). I needed a car immediately and I needed credit as well, so I took the first thing smokin'. Now after payments up until June/July 2006... they say I owe $5,788. How can it be? I did some math figures and I got around $3k a little over. Can anyone explain this to me?
QUOTE(jaslken @ Sep 6 2006, 11:59 AM) 
I financed a car in March 2004 for $8,595 at an interest rate of 24% (I know... stupid). I needed a car immediately and I needed credit as well, so I took the first thing smokin'. Now after payments up until June/July 2006... they say I owe $5,788. How can it be? I did some math figures and I got around $3k a little over. Can anyone explain this to me?
How much did you pay each and every month?
How long was the loan for? Do you know if it is a simple interest loan? (These can be found in your contract.)
When you make payments on a car, the majority of the payments for the first few years go towards interest not principle.
IF you financed for 5 years at 24% and ONLY financed the $8595, then the figures they presented appear correct.
When you make payments on a car, the majority of the payments for the first few years go towards interest not principle.
IF you financed for 5 years at 24% and ONLY financed the $8595, then the figures they presented appear correct.
Does the original poster have a copy of the retail installment sales contract?
Sorry I was not online last nite...
I will try to answer each question here...
I do have the original agreement somewhere at home. I am a pack rat and SAVE every piece of paper I have ever touched. It is a matter of finding it. But I will check whenI get home tonight.
I paid $249/month every month.
It was a 5 year loan not sure if it was simple interest or not. Will find out tonight.
Can you show me how the interest and principal is paid every month and how it will show my balance left over? Is there a formula?
I will try to answer each question here...
I do have the original agreement somewhere at home. I am a pack rat and SAVE every piece of paper I have ever touched. It is a matter of finding it. But I will check whenI get home tonight.
I paid $249/month every month.
It was a 5 year loan not sure if it was simple interest or not. Will find out tonight.
Can you show me how the interest and principal is paid every month and how it will show my balance left over? Is there a formula?
once you find your contract, I believe there are a number of ammortization automotive calculators over at bankrate dot com.
The numbers are correct for a standard 5 year loan at 24%. You won't be down to $3k owed until Feb 2008. Initially, more than 2/3 of each payment you made was interest.
CODE
Amortization Schedule
Loan Date: 3/1/2004
Principal: $8,595.00
# of Payments: 60
Interest Rate: 24.00%
Payment: $247.26
Schedule of Payments
Please allow for slight rounding differences.
Pmt # Date Principal Interest Balance
1 4/1/2004 75.36 171.90 8,519.63
2 5/1/2004 76.86 170.39 8,442.77
3 6/1/2004 78.40 168.85 8,364.36
4 7/1/2004 79.97 167.28 8,284.39
5 8/1/2004 81.57 165.68 8,202.82
6 9/1/2004 83.20 164.05 8,119.61
7 10/1/2004 84.86 162.39 8,034.74
8 11/1/2004 86.56 160.69 7,948.18
9 12/1/2004 88.29 158.96 7,859.88
10 1/1/2005 90.06 157.19 7,769.82
11 2/1/2005 91.86 155.39 7,677.95
12 3/1/2005 93.70 153.55 7,584.25
13 4/1/2005 95.57 151.68 7,488.68
14 5/1/2005 97.48 149.77 7,391.19
15 6/1/2005 99.43 147.82 7,291.75
16 7/1/2005 101.42 145.83 7,190.33
17 8/1/2005 103.45 143.80 7,086.87
18 9/1/2005 105.52 141.73 6,981.35
19 10/1/2005 107.63 139.62 6,873.72
20 11/1/2005 109.78 137.47 6,763.93
21 12/1/2005 111.98 135.27 6,651.95
22 1/1/2006 114.22 133.03 6,537.73
23 2/1/2006 116.50 130.75 6,421.22
24 3/1/2006 118.83 128.42 6,302.38
25 4/1/2006 121.21 126.04 6,181.17
26 5/1/2006 123.63 123.62 6,057.53
27 6/1/2006 126.10 121.15 5,931.42
28 7/1/2006 128.63 118.62 5,802.79
29 8/1/2006 131.20 116.05 5,671.59
30 9/1/2006 133.82 113.43 5,537.76
31 10/1/2006 136.50 110.75 5,401.25
32 11/1/2006 139.23 108.02 5,262.02
33 12/1/2006 142.02 105.24 5,120.00
34 1/1/2007 144.86 102.40 4,975.14
35 2/1/2007 147.75 99.50 4,827.38
36 3/1/2007 150.71 96.54 4,676.66
37 4/1/2007 153.72 93.53 4,522.94
38 5/1/2007 156.80 90.45 4,366.14
39 6/1/2007 159.93 87.32 4,206.20
40 7/1/2007 163.13 84.12 4,043.06
41 8/1/2007 166.39 80.86 3,876.66
42 9/1/2007 169.72 77.53 3,706.93
43 10/1/2007 173.12 74.13 3,533.81
44 11/1/2007 176.58 70.67 3,357.23
45 12/1/2007 180.11 67.14 3,177.11
46 1/1/2008 183.71 63.54 2,993.39
47 2/1/2008 187.39 59.86 2,806.00
48 3/1/2008 191.14 56.12 2,614.86
49 4/1/2008 194.96 52.29 2,419.90
50 5/1/2008 198.86 48.39 2,221.03
51 6/1/2008 202.83 44.42 2,018.20
52 7/1/2008 206.89 40.36 1,811.30
53 8/1/2008 211.03 36.22 1,600.26
54 9/1/2008 215.25 32.00 1,385.01
55 10/1/2008 219.56 27.70 1,165.45
56 11/1/2008 223.95 23.30 941.50
57 12/1/2008 228.43 18.83 713.07
58 1/1/2009 232.99 14.26 480.07
59 2/1/2009 237.65 9.60 242.41
60 3/1/2009 242.41 4.84 0.00
Totals 8,594.99 6,240.63
Loan Date: 3/1/2004
Principal: $8,595.00
# of Payments: 60
Interest Rate: 24.00%
Payment: $247.26
Schedule of Payments
Please allow for slight rounding differences.
Pmt # Date Principal Interest Balance
1 4/1/2004 75.36 171.90 8,519.63
2 5/1/2004 76.86 170.39 8,442.77
3 6/1/2004 78.40 168.85 8,364.36
4 7/1/2004 79.97 167.28 8,284.39
5 8/1/2004 81.57 165.68 8,202.82
6 9/1/2004 83.20 164.05 8,119.61
7 10/1/2004 84.86 162.39 8,034.74
8 11/1/2004 86.56 160.69 7,948.18
9 12/1/2004 88.29 158.96 7,859.88
10 1/1/2005 90.06 157.19 7,769.82
11 2/1/2005 91.86 155.39 7,677.95
12 3/1/2005 93.70 153.55 7,584.25
13 4/1/2005 95.57 151.68 7,488.68
14 5/1/2005 97.48 149.77 7,391.19
15 6/1/2005 99.43 147.82 7,291.75
16 7/1/2005 101.42 145.83 7,190.33
17 8/1/2005 103.45 143.80 7,086.87
18 9/1/2005 105.52 141.73 6,981.35
19 10/1/2005 107.63 139.62 6,873.72
20 11/1/2005 109.78 137.47 6,763.93
21 12/1/2005 111.98 135.27 6,651.95
22 1/1/2006 114.22 133.03 6,537.73
23 2/1/2006 116.50 130.75 6,421.22
24 3/1/2006 118.83 128.42 6,302.38
25 4/1/2006 121.21 126.04 6,181.17
26 5/1/2006 123.63 123.62 6,057.53
27 6/1/2006 126.10 121.15 5,931.42
28 7/1/2006 128.63 118.62 5,802.79
29 8/1/2006 131.20 116.05 5,671.59
30 9/1/2006 133.82 113.43 5,537.76
31 10/1/2006 136.50 110.75 5,401.25
32 11/1/2006 139.23 108.02 5,262.02
33 12/1/2006 142.02 105.24 5,120.00
34 1/1/2007 144.86 102.40 4,975.14
35 2/1/2007 147.75 99.50 4,827.38
36 3/1/2007 150.71 96.54 4,676.66
37 4/1/2007 153.72 93.53 4,522.94
38 5/1/2007 156.80 90.45 4,366.14
39 6/1/2007 159.93 87.32 4,206.20
40 7/1/2007 163.13 84.12 4,043.06
41 8/1/2007 166.39 80.86 3,876.66
42 9/1/2007 169.72 77.53 3,706.93
43 10/1/2007 173.12 74.13 3,533.81
44 11/1/2007 176.58 70.67 3,357.23
45 12/1/2007 180.11 67.14 3,177.11
46 1/1/2008 183.71 63.54 2,993.39
47 2/1/2008 187.39 59.86 2,806.00
48 3/1/2008 191.14 56.12 2,614.86
49 4/1/2008 194.96 52.29 2,419.90
50 5/1/2008 198.86 48.39 2,221.03
51 6/1/2008 202.83 44.42 2,018.20
52 7/1/2008 206.89 40.36 1,811.30
53 8/1/2008 211.03 36.22 1,600.26
54 9/1/2008 215.25 32.00 1,385.01
55 10/1/2008 219.56 27.70 1,165.45
56 11/1/2008 223.95 23.30 941.50
57 12/1/2008 228.43 18.83 713.07
58 1/1/2009 232.99 14.26 480.07
59 2/1/2009 237.65 9.60 242.41
60 3/1/2009 242.41 4.84 0.00
Totals 8,594.99 6,240.63
Man, that's a lot of interest!
Those kind of payments are almost like my student loans...where most of its going to the interest right now.
Those kind of payments are almost like my student loans...where most of its going to the interest right now.
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