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How Practical Is Paying Monthly Payments For A Car In My Situation

What is the formula for calculating the monthly payment for an Auto Loan?

$192.48 is the correct payment.
Using the formula below --
P = principal = 9606.00
I = annual interest rate = 0.075
L = 5 years
Then:
J = monthly interest = 0.075/12 = 0.00625
N = number of months financed = 12 * 5 = 60
Plug all these values into the formula below and you will get the monthly payment. Any insurance, etc. will be added to this amount.

FYI -- How you were figuring the amount is incorrect on a couple of points. First, you only calculated interest for 1 year ($720.45) For 5 years, interest would be more like $3600! However, you don't owe that much interest over the life of the loan, because you keep making payments. Each payment reduces the amount you owe, thus reducing the interest burden on the outstanding principal.

Although the payment amount doesn't change over the life of the loan, how it gets divided up does. Early on, most of your payment goes to interest, while toward the end of the 5 years, most of your payment applies toward principal.

good luck!

Can I buy a car at 16 and make monthly payments?

Technically you can enter into a contract at 16 but you are not legally liable to uphold your end of it so you would have a very difficult time (probably impossible) finding a company willing to finance you. Your best option would be to have an adult sign for it. With that said, it's not a good idea to finance anything at your age. Save the money you would use for the payments until you can pay cash for a reliable but practical car. Building good money habits now will benefit you beyond what you can fathom. There's a desire among people to have things to impress people or complete with people. If you can learn to avoid that trap, you'll wind up much more financially secure and experience a sense of freedom that most people never do.

I have a monthly car payment that I might not be able to afford any longer. How can I get out of the obligation without it negatively impacting my credit?

Well, these are very personal decisions, and sometimes hard, especially if the vehicle is one that you really enjoy.Your experience may vary depending on the laws where you live, but here are a few things to consider since you want to avoid a negative impact on your credit.Are you able to sell the car to pay off the bank note in full?If yes, then that’s what I would consider doing. Clean your car up, make it shine and maximize how much you can get out of it.On the other hand, if you owe more on the car than it is worth, you will want to take a look at how much you can get for the car by selling it, determine what the difference is between what you still owe the bank and what you will get for the car. For example: if you owe the bank 5,000 and can only sell it for 4,000 then you will be 1,000 short.Once you know how much you will be short, figure out someway to come up with that money (legally please! :) ).Then sell the car, take the money from the sale, and the money that you have, and pay the loan off.Depending on what’s going on, you may need to moonlight to earn some extra money. Maybe drive Uber or deliver pizza, etc. to get the money. Shoot, if you make enough money with side gigs, you may be able to keep the car and just pay the loan off quickly.It also sounds like you have an opportunity to learn from this experience. If I were you, I’d take some time to put a life plan together, including what you want your finances to look like in 5–10 years and then start going after your dreams.Best wishes!

Im currently payng about $375/mo for my car payment and its too much? What can I do??

Should I trade it in and get ANOTHER car?? Money has been tight lately because I havent been getting many hours at work. Now that I am working more hours, should I hold out a few months to see if I can keep paying it? Or should I start looking for something cheaper. I bought an 08 Nissan Versa in April 2007. I have made all the payments since then. About mid-Jan my checks have been lower because I havent been getting all my hours. I keep telling myself to stick it out. I dont know what to do. Any ideas or suggestions would be apprciated. Thank you so much!

Is a car loan at an interest rate of 22.9% practical?

I am 21, I have never bought a car before, and my credit is not very good. My credit is at like a 560 right now.
Any ways so there is this car I want to buy, they said I am approved for the car. the finance price is 12,500 for 60 months at 22.9
the calculator says the car ends up costing me around 21,000.
Is that a good deal? A friend of mine told me they are ripping me off, but I kind of think that's as good as it is going to get with credit like mine.
What do you think?

What is a decent down payment for a $25,000 car?

Okay so My dream car is a 2017 Honda Civic si. I’ve always wanted a si since high school. I’m 20 years old with no credit but my grandpa as always told me if I wanted that car then I need to come up with $2500 and he will let me cosine with him (he has perfect credit). I don’t know about you guys but don’t you think I need a little more than $2500 since the car is $25,000?? And plus I don’t want my payments to be like $600 a month, the maximum payment a month I would prefer is $300 but nothing above that. I don’t want the car until next summer anyways so I have plenty of time to save up so what do you guys think is a good down payment for that car?

Is it possible to rent out my super cars in order to pay off the monthly financing?

Is it possible to rent out my super cars in order to pay off the monthly financing?Possible? Sure.Sustainable?Feasible?Practical?Those are different questions.Obtaining insurance to cover the exposures to loss is going to be your single biggest hurdle.So lets just say I own a Lamborghini Aventador SV roadster, Ferrari F12 and a Rolls Royce Wrath.Could I set up a website and a business in order to rent these cars out and pay off the monthly payments of 3500 euro per car, per month ?First… if simeone thinks their Personal Auto Insurance Company is going to be OK with the idea, they may want to think again. A quick call to an agent posing the question should put the thought to rest.Next step… pursue a Commercial Auto Insurance carrier that would handle a rental car company (small subset of carriers) for super cars (much smaller subset of carriers) for someone who hasn’t operated that type of business before (minuscule or non-existent subset of carriers).Gotta love the entrepreneurial spirit, but a little bit of research with some insurance pros in the area may result in the realization that if one can’t spring for a “super car” straight up… one might not be meant to own it.Still interested? Go for it!Thanks for A2A.

Is it better to pay off a car in payments or upfront?

My answer in it's entirely was deleted and erased with a warning if I told the WHOLE TRUTH I WOULD BE BARRED, SUSPENDED OR EXCOMMUNICATED!But edited:ASAP IS ALWAYS BETTER: THE INTEREST IS HIGHEST IN THE BEGINING. CASH IS A RISK , BASED ON YOUR FINANCIAL CONDITION AND ANICIPATED FUTURE.BASED ON THE ABOVE I SHOULD ONLY SAY I PAY THE LEAST PRACTICAL AMOUNT PLUS A SAFETY FACTOR AT THE LOWEST RATE POSSIABLE AND OVERPAY, IF ALLOWED WITHOUT PENALITY, WHICH REDUCES THE INTEREST SIGNIFICANTLY! A LITTLE RISK AT A TIME!READ THE P & I ON THE OFFER ND PRORATE/ PREDICT IF YOU PAY “X” DOLLARS ASAP MORE ON HOW IT EFFECTS THE INTEREST YOU WILL PAY & THE TIME YOU WILL BE LIABLE?PAYING CASH : IF ON A BRAND NEW CAR/ VEHICLE “EATS” A LARGE PORTION IF YOUR MONEY IN: DEPRECIATION AS SOON AS YOU TAKE POSSESSION, MORE THE MORE YOU USE IT? RENT IR LEASE TO BUY WASN'T ASKED BUT YOU SHOULD CONSIDER “ ALL” YOUR OPTIONS WITH COUNCIL BEFORE- YOU COMMIT!PLEASE ACCEPT OR DECLINE, COUR CHOICE, BUT DON'T COMPLAIN: AS I AM UNDER SUSPENSION - AS ABOVE- FOR BEING TOO HONEST AND TRUTHFUL!I ENJOY HELPING OTHERS AS MUCH AND AS OFTEN AS I CAN. TO PAY FORWARD FOR THOSE WHO HELPED BE SO MANY TIMES IN THE PAST.IN GOD WE TRUST BUT WE MUST BE CAREFUL AND HELP HIM TO HELP US MORE!

How does someone afford $1200 a month for an apartment?

People need to budget. One needs to decide whether they want a nice car or a nicer place to live on that type of salary. There is no reason why a car payment is needed if you save properly. That leaves one with just under $15k in rent for the year on a $50k salary which should be doable. General rule is to not go over 3x your salary for rent which this would not.

Which is better on a car loan, paying down on the capital or make higher than scheduled monthly payments?

In case of any other installment loan, you’re always best off with a note that has the shortest duration and as low APR as practical. This is in order to drive down the costs of interest.With car financing (new cars in particular), things are a bit different. I don’t have any of the more detailed answers on hand to refer to, but the final purchase price is influenced a lot by the potential profit the manufacturer’s (or the dealer’s) financing division is expecting to make off of you in interest charges. In fact, if you offer to pay in cash, the dealer may refuse to sell you the car at the agreed price as I found out when I asked If a car buyer purchases a vehicle at a dealer with cash/check vs financing, how much of a discount can the said customer expect?The more sly buyers with cash on hand can really drive down the purchase price by negotiating in BHPH-level financing terms as long as there’s no prepayment penalty of any kind. Then just pay off the loan in full when the first payment is due. There’s nothing the bank can do about it.The interest rate is higher as the length of the loan becomes longer, but the upside is that the amount of money you’re obligated to pay monthly is less. Such is life. Unexpected expenses happen. There is nothing overly wrong with taking out a 60 month note even if your current finances will permit you to pay within, say, 36 months. Just pay more than the minimum payment every month whenever you can.

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