What's the rate?

[Anonymous]

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@boomhower wrote:

Their going to pay in the neighborhood of $15k in interest over the life of the loan. 

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Could have bought another car over the life of that loan.

[laz98]

How can I find out how much interest someone will pay over the life of their loan?  I never understood how to figure these things out.

My gf's cousin just bought a Jetta.  6 years, 14%, $339/month.  We're curious how screwed she is.

(Aside from the fact that she doesn't have the income to support a car purchase at all )

[pizzadude]

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@laz98 wrote:

How can I find out how much interest someone will pay over the life of their loan?  I never understood how to figure these things out.

My gf's cousin just bought a Jetta.  6 years, 14%, $339/month.  We're curious how screwed she is.

(Aside from the fact that she doesn't have the income to support a car purchase at all )

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@I use an excel spreadsheet that amortizes the loan......guessing a price of $16,500, with no downpayment this would yield payments of  $339 @Anonymous% for 6 years.

Total paid ---->  $ 24,479

Total interest ---->  $7,979.    Ouch 

Total principal ----> $16,500

[Anonymous]

That does hurt Pizza!  I got over 2x the loan and pay half the interest.  Buying an auto is such a major purchase and the term is so long that if I cannot get single digit interest I walk.  I realize that is not an option for everyone, but people need to weigh their options.  The first new vehicle I bought post divorce was what I called basic transportation.  Ten years later I was able to get something that had more bells and whistles at a much lower interest rate.

Still...  I would rather buy a VW than a Kia!

[laz98]

Thanks Pizza!! 

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@Anonymous wrote:

That does hurt Pizza!  I got over 2x the loan and pay half the interest.  Buying an auto is such a major purchase and the term is so long that if I cannot get single digit interest I walk.  I realize that is not an option for everyone, but people need to weigh their options.  The first new vehicle I bought post divorce was what I called basic transportation.  Ten years later I was able to get something that had more bells and whistles at a much lower interest rate.

Still...  I would rather buy a VW than a Kia!

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I agree, people should weigh their options.  But her cousin is not the brightest crayon in the box.  She just kept saying, "I have bad credit", but wouldn't elaborate on it.  I don't think she even knows if she has bad credit or not!  She's a bit of a snob & saw that everyone around her was buying a car, so she had to jump on the bandwagon, too.  She doesn't know to distinguish between "I want" & "I need".  She's sad that she had to settle for a basic model!!!  *facepalm*

[Anonymous]

I agree laz98.  The basic transportation I bought was a general need.  My old car was still running and having no problems, but the miles were getting higher and I drove 30 miles one way to work at night on rural roads.  I was paranoid it would break down in the middle of nowhere.  So I bought a new vehicle and got the extended warranty.

Now my purchase last year was a want.  The winter was so bad that I was tired of spending it getting stuck in my driveway.  I never missed work and if I did due to the weather there was a policy in place.  Still the aggravation built up to the point that I was able to mentally justify the purchase after saying I wanted something newer, bigger and better for 7 years.

[laz98]

The sad part is, the only reason she *might* need a new car, is because she never does maintenance on the one she had!  so this one won't last long either.

[Anonymous]

Gosh dang I hate to hear this that's  highway robbery and I'm not usualy one to rant but I really dislike car sales men and women.  I know everyone has to make a living but come on you can't sit there with a straight face and say that the majority of them aren't snakes!  Not all of them but throw a nickel in any direction and you will hit one!

[Anonymous]

I wouldn't say it is highway robbery, when you buy a vehicle from a major dealer the information and options are right in front of you.  They want to make the sale and will push it through any way they can.  You just have to watch the extras that they try to sell you if you do not need them.  Insurance on the loan and extended warranties are their favorites to push through. 

Now highway robbery are the buy here pay here places that do in house financing.  I have known people that put thousands down and are paying like 27%, on a vehicle with 100k+ miles.  Yet I guess even they deserve what they get.  Instead of getting a lower end new or used car they wanted something fancy and paid for it... through the nose, ears and eyes!

[Anonymous]

Yes +1 with what psychoinhell is saying that's very true!

Good Point