gymboy33 Posted April 7, 2012 Share Posted April 7, 2012 (edited) 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 Edited April 7, 2012 by gymboy33 Link to comment Share on other sites More sharing options...
thaicbr Posted April 8, 2012 Share Posted April 8, 2012 5% per year from the price. Link to comment Share on other sites More sharing options...
gymboy33 Posted April 8, 2012 Author Share Posted April 8, 2012 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 Link to comment Share on other sites More sharing options...
funcat Posted April 8, 2012 Share Posted April 8, 2012 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. Link to comment Share on other sites More sharing options...
Kwasaki Posted April 8, 2012 Share Posted April 8, 2012 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. Link to comment Share on other sites More sharing options...
thaicbr Posted April 8, 2012 Share Posted April 8, 2012 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. Link to comment Share on other sites More sharing options...
Kwasaki Posted April 8, 2012 Share Posted April 8, 2012 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. Link to comment Share on other sites More sharing options...
Felt 35 Posted April 8, 2012 Share Posted April 8, 2012 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. Link to comment Share on other sites More sharing options...
culicine Posted April 8, 2012 Share Posted April 8, 2012 Even at 5% per year (=30% total), your repayments are too high. I would check what other monthly charges they are applying. Link to comment Share on other sites More sharing options...
gymboy33 Posted April 9, 2012 Author Share Posted April 9, 2012 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? Link to comment Share on other sites More sharing options...
Kwasaki Posted April 11, 2012 Share Posted April 11, 2012 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. Link to comment Share on other sites More sharing options...
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