got it figured out. thanks! :)

[BrerLizzie]

i have this school worksheet on buying a car. i got everything done but the loan part. I've looked on google but nothings really working. My car is only $3231, insurance for six months is $1465 so i'm taking it out for $5000. everyone wants you to take out more than that though or give out a lot of information and i'm not going to do that for a worksheet. honestly, i'm a little confused... this is the loan part of the worksheet-

(downpayment can be up to 20%) <--((what does that mean???))
Lending institution:
intrest rate:
number of months:
monthly payments:
final cost:
(loan amount + intrest over life of the loan)

i can't really make it up or use a loan calculator (which would have made it easier!)

help please?

 

[golfgal]

i have this school worksheet on buying a car. i got everything done but the loan part. I've looked on google but nothings really working. My car is only $3231, insurance for six months is $1465 so i'm taking it out for $5000. everyone wants you to take out more than that though or give out a lot of information and i'm not going to do that for a worksheet. honestly, i'm a little confused... this is the loan part of the worksheet-

(downpayment can be up to 20%) <--((what does that mean???))
Lending institution:
intrest rate:
number of months:
monthly payments:
final cost:
(loan amount + intrest over life of the loan)




help please?

I am not sure I can help totally but I read the downpayment part is that you can put UP TO 20% down on your car so if you are taking out a loan for $5000, you can put 20% of that down to lower how much you borrow. A heads up, in real life you won't be able to borrow extra for the insurance unless the car is VALUED at that amount. Look up amortization schedule on the internet and you should be able to find something to figure out the payment amount and the final cost.
i can't really make it up or use a loan calculator (which would have made it easier!)

 

[BrerLizzie]

so i cant take out a loan on a cheap car? or would i be able to if i didnt go through an internet place and called someone and explained my project?

 

[golfgal]

You can take out a loan on a cheap car, the car just has to have a blue book value (or what ever the bank or lending institution uses for car values) of the loan amount. If you are going to buy a car and they are asking $4000 for the car, the blue book value on the car is $4500, you could borrow the $4500 if you wanted. If the blue book value of the $4000 car is $3000, they will only lend you $3000. Usually interest rates are higher for used cars then new cars, too. Here is a link to a bank site to help you find the interest rate. https://autofinance.wellsfargo.com/rateTermPage.jsp

Did you look up amortization schedule? With the rate from the listed site and an amortization schedule, you should be able to find the rest of your information.

 

[BrerLizzie]

yeah, the first few didnt work out for some reason. i'm trying different one. i did get the intrest rate at around 7.59% for 24 months.

 

[BrerLizzie]

k, the first one that worked well gave me $120 a month with the 7.59% for 24 months. does that sound sort of close?

 

[golfgal]

k, the first one that worked well gave me $120 a month with the 7.59% for 24 months. does that sound sort of close?

That sounds about right. Our first new car cost us $10,000 (quite a few years ago). We had a payment amount of $212 with an adjustable interest rate (which for us at the time was good because rates were dropping--it started out at about 9% and ended up in the 5% range-can't remember exactly because I am getting old ). I have to sign off so good luck finding the rest. Hopefully someone better versed in this can help you more. Good luck.

 

[BrerLizzie]

thanks for your help. i think i pretty much have the hang of it now.