interest rates are always in the headlines, but rates are only one piece of the pie when it comes to car financing. not all loans are created equal, so before you make a big decision make sure you compare offers from multiple lenders with different interest rates and terms to find the best deal for your unique situation.
-bridging is an option many people overlook when it comes time to buy a new or used car. bridging involves using another vehicle that they already own as payment towards their new or used vehicle that they're buying. this loan may be in addition to any credit union loans, sba loans, private bank loans, usda loans or usda rural loans offered through dealerships.
-if you need
how do i figure out how much interest i will pay on my car loan?
interest paid on a loan is the cost of borrowing money. the interest rate on a loan, sometimes called apr (annual percentage rate) is composed of two rates: the annual equivalent and the compounding frequency. therefore, you would need to calculate both in order to figure out how much interest you will pay per year.
to find the annual equivalent rate, divide 1 by ln(1+i), where “i” is the interest on your car. for instance, if i=5% for 90 days (note that this means 0% after 90 days), it would be 5/100 = .05 or 5%.
if we wanted to compound annually with an equivalent return of 50%, then we
how much interest do you pay on a car?
it all depends on the interest rate that's offered by the bank.
let's say you wanted to buy a $10,000 car with cash. you would invest $10,000 in what is called “cash equity” or “equity percentage.” now let's say you haggle with the dealer and he'll sell it for 10% down/$1,000 with weekly payments of $100/week for 60 weeks. that means one week your equity status would be 0%, two weeks your equity status would be 10%, three weeks it would be 20%. let't say an interest rate of 18% with a small amount paid per week is fair. then after six months, your equity percentage invested will have climbed to
