hi all,

My gf gt a 2nd hand car for 440k, paid 65k downpayment and bank gave her finance the 375k over 72 months @ 5%. and its 7245 a month.

My questions are how is it 7245 amonth

as 7245 x 72 + 521,640 so 521,640 - 375,000 = 146,640 extra or interest

does that equate to 5% if so how do they work this out

cheers for any help

gymboy

5% per year from the price.

5% per year from the price.

5% of 375,000 (loan price) is 18,750 x 6 (6 years/72 months loan period) = 112,500

or 5% of 440,000 ( total price down+down payment) is 22,000 x 6 (6 years/72 months loan period) = 132,000

but as i mentioned in the first post

7245 (monthly repayment) x 72 (72 months loan period) = 521,640 so 521,640 - 375,000 = 146,640 extra or interest

so what am i missing or where have i made a mistake

cheers

5% per year from the price.

5% of 375,000 (loan price) is 18,750 x 6 (6 years/72 months loan period) = 112,500

or 5% of 440,000 ( total price down+down payment) is 22,000 x 6 (6 years/72 months loan period) = 132,000

but as i mentioned in the first post

7245 (monthly repayment) x 72 (72 months loan period) = 521,640 so 521,640 - 375,000 = 146,640 extra or interest

so what am i missing or where have i made a mistake

cheers

Some of the 2nd hand finance company's ad insurance and maybe some other charges...better check the statement.

5% per year from the price.

5% of 375,000 (loan price) is 18,750 x 6 (6 years/72 months loan period) = 112,500

or 5% of 440,000 ( total price down+down payment) is 22,000 x 6 (6 years/72 months loan period) = 132,000

but as i mentioned in the first post

7245 (monthly repayment) x 72 (72 months loan period) = 521,640 so 521,640 - 375,000 = 146,640 extra or interest

so what am i missing or where have i made a mistake

cheers

If you get her to explain it to you I would think there is a life insurance policy on the loan, so if she were unfortunate the loan would be automatically paid off.

ummm maybe its a dodgy lender and they are doing 5% per month. but really you have the paperwork just check it out. I guess she's paying the monthly and is happy so. all is good.

5% per year from the price.

5% of 375,000 (loan price) is 18,750 x 6 (6 years/72 months loan period) = 112,500

or 5% of 440,000 ( total price down+down payment) is 22,000 x 6 (6 years/72 months loan period) = 132,000

but as i mentioned in the first post

7245 (monthly repayment) x 72 (72 months loan period) = 521,640 so 521,640 - 375,000 = 146,640 extra or interest

so what am i missing or where have i made a mistake

cheers

Without seeing your statement and the mechanics of the calculations, me's think's it goes something like this.

440,000 - 65,000 deposit = 375,000 + 26,250 @ 7% VAT = 401,250 X 5% interest + 20,063 X 6 = 120,378 + 401,250 = 521,628 divided by 72 = 7,2448333 re-occuring = rounded up to the nearest whole number = 7,245 per month.

Not unusual with a total interest on cars at the second hand dealers around 30-35%. Looks better when they say interest pr. year. The only reason they can sell is a low downpayment.

Even at 5% per year (=30% total), your repayments are too high. I would check what other monthly charges they are applying.

5% per year from the price.

5% of 375,000 (loan price) is 18,750 x 6 (6 years/72 months loan period) = 112,500

or 5% of 440,000 ( total price down+down payment) is 22,000 x 6 (6 years/72 months loan period) = 132,000

but as i mentioned in the first post

7245 (monthly repayment) x 72 (72 months loan period) = 521,640 so 521,640 - 375,000 = 146,640 extra or interest

so what am i missing or where have i made a mistake

cheers

Without seeing your statement and the mechanics of the calculations, me's think's it goes something like this.

440,000 - 65,000 deposit = 375,000 + 26,250 @ 7% VAT = 401,250 X 5% interest + 20,063 X 6 = 120,378 + 401,250 = 521,628 divided by 72 = 7,2448333 re-occuring = rounded up to the nearest whole number = 7,245 per month.

thanks buddy your correct.

on the statement they had + VAT before the 375,000 fiqure.

and (รวม VAT) before the repayment price 7,245

and รวม means include.

on a different note the bank who loaned the cash said if you payed early you would get a 50% reduction of the remaining interest.

so i assume if i paid all off in 1 year i would pay 375,000 + 20,063 + 50% of100,315 = 50,158 (50% of the remaining five years interest)

Is about normal or not so good?

5% per year from the price.

5% of 375,000 (loan price) is 18,750 x 6 (6 years/72 months loan period) = 112,500

or 5% of 440,000 ( total price down+down payment) is 22,000 x 6 (6 years/72 months loan period) = 132,000

but as i mentioned in the first post

7245 (monthly repayment) x 72 (72 months loan period) = 521,640 so 521,640 - 375,000 = 146,640 extra or interest

so what am i missing or where have i made a mistake

cheers

Without seeing your statement and the mechanics of the calculations, me's think's it goes something like this.

440,000 - 65,000 deposit = 375,000 + 26,250 @ 7% VAT = 401,250 X 5% interest + 20,063 X 6 = 120,378 + 401,250 = 521,628 divided by 72 = 7,2448333 re-occuring = rounded up to the nearest whole number = 7,245 per month.

thanks buddy your correct.

on the statement they had + VAT before the 375,000 fiqure.

and (รวม VAT) before the repayment price 7,245

and รวม means include.

on a different note the bank who loaned the cash said if you payed early you would get a 50% reduction of the remaining interest.

so i assume if i paid all off in 1 year i would pay 375,000 + 20,063 + 50% of100,315 = 50,158 (50% of the remaining five years interest)

Is about normal or not so good?

Don't try and do their maths ask them for a settlement fiqure at the time you want to pay and then see if it's a deal that suits you.