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Today i would like to speak about car loan calculator and automobile loan interest rates if you only found this content. if you would like to find out more about financial subjects now on to automobile loan interest the interest that you’re paying on your car is really very easy to understand car interest rates work an equivalent way as other interest rates you’ve just need to understand the payment schedule so as to know more about your automobile loan than most folks do.
This car loan calculator is simply about the interest rates so let’s pretend that you simply buy a car at your local dealer for rs 3,00000 and after taxes and costs and every one that stuff the entire amount finishes up costing you 3,50,000. that you simply ‘re gonna be financing and for instance that you’ve got got good credit so you finish up with an rate of interest of three and you opt that you want to try to to the loan for 60 months you’re gonna be paying four hundred and thirty one thousand rupees a month thereon loan for sixty months.
Now how did i use the car loan calculator. it’s very easy you only need to search a payment calculator online connect a couple of numbers and you’re done. I’ll show you actually quick on a loan app on my phone the app is literally called loan and every one you are doing is you only connect the numbers twenty four thousand at three percent over sixty months or five years within the case of this app now take a glance down here at the entire interest you’re gonna be paying thereon loan seems like you’ll pay eighteen hundred and seventy five dollars on a 3 percent loan thereon car that’s tons of cash to be spending on interest and that is a very low rate now let’s check out the payment schedule this one’s really useful because it’s gonna break down the quantity of cash that you’re spending on interest and principal on a monthly basis through out the term of the loan so from this information you’re gonna be paying 300 and seventy one rupees your first month in theory and sixty rupees in interest now check out month twelve you’re now paying 3000 and eighty two rupees in theory and fifty rupees in interest so why are these numbers recuperating over time this is often happening because as you pay down the principal on your loan you do not owe the maximum amount thereon anymore and therefore the three percent rate is simply charging you interest on what you owe so as you Oh less you pay less an interest it’s really not very complicated it’s seriously not rocket science.
I do not want to over complicate things with fancy math formulas I just want to point out you a simple way of deciding what proportion interest you’re paying on your automobile loan this is often how I roll in the hay and that i roll in the hay for all differing types of loans whether it’s a house a car a toy whatever I’m financing I just connect these numbers and that i can find out if I can afford it or not it is a specialized idea to understand what proportion you’re paying an interest on a loan in order that you’ll find out what proportion you’ll truly afford and the way much money and interest you’re gonna be discard and another thing you actually want to avoid getting a loan for extended than 60 months because generally speaking an automobile loan over 60 months is perhaps gonna cause you to travel the wrong way up in your automobile loan so what’s upside-down mean it’s really simple it just means you owe more on your car then it’s actually worth.
So for instance that the car you paid 3,00000 for was only worth 1,50,000 at the top of two years well if you continue to owe 75,000 at that very same point because you made the decision to try to to some stupid 84 month loan then you’re now down 20000 thereon car meaning you’re the wrong way up in your automobile loan also confine mind that interest rates are typically higher the longer you’ve got the loan for therefore if the typical 60 month loan is 3% then an 84 month loan is perhaps getting to be about 5% interest so you’re gonna be paying more an interest for the car and you’re more likely to finish the wrong way up within the car – please be smarter together with your money you do not need to do what the typical person is doing with their automobile loan apparently the typical automobile loan is for 68 months at 4.2 percent on a loan that’s 3,00000. in order that means most folks are definitely ending up up side down and we’re not following any of those steps hopefully you learned something today.