Car Loan Interest Explained (The Easy Way)

[@HonestFinance]

Here’s a link to my Car Buying Playlist if you wanna watch more :) kzbin.info/aero/PLOmIpJDqCR-L6xTFH83iG-hGK9aDpy17r

[@michelleone2803]

Shouldn't be higher on my second Irate**** $19, 555 and change ****

[@michelleone2803]

@@lorenzojax6554 Ask someone to send you a message and you'll get the notification on your phone and when u click on it.. it should let you sign in.. I never unstood how they work.. I always get signed into different accounts depending on what notification I get

[@MusicManZay]

I am one of the few teachers who teaches credit, loans and budgeting to high school seniors and juniors. Very important information.

[@silentagony1019]

Bless your kind heart, I just graduated and none of the teachers ever tough us financially stability

[@jasonreynolds1939]

Don't let anyone else know that they may fire you for teaching them about money

[@ArisenLegend]

there ought to be many, many more of you. you've done a great thing for your students, for real.

[@heyyou722]

Besides an EPI class I had (economic public issues) probably yeah

[@bellelysenko3498]

Your co workers are vultures crippling children's ability to survive and succeed

[@kofori321]

I wonder why schools and colleges dont teach about Student loans, car loans, mortgages etc. The archaic curriculums need to be revised asap.

[@HonestFinance]

Ya. It’s a problem. They do need to add it into schools ASAP

[@nava03071987]

is there something stopping parents from teaching this?

[@juniorflores4542]

They do. You just watch KZbin videos instead of going out and finding the classes.

[@hunkydude322]

the system is rigged that's why they don't teach that subject.

[@crystal96f]

THIS !!!! 🙌🏻🙌🏻🙌🏻🙌🏻🙌🏻

[@redshellman]

I used to make a lot of money as a Car Salesman, but I had to get out of it, and these days I kind of regret it. I used to see people smiling and driving off happy with their new vehicle after just signing a 75 month payment plan with an 18% interest rate. Absolutely killed me inside. Worst part is... I never lied. They just willingly took the deal. I wonder how many people's lives I wrecked by talking them into a loan I knew they couldn't afford. Yet.. I dunno. It's never forced on you folks. Just do the math. And don't make hasty decisions.

[@nillywevs]

so many people lack basic financial literacy, its a shame. but hey it was there decision. youre a good person for having this thought, though. many people would never consider their impact like that

[@migueluribe4117]

People get excited at the thought of a new car and have no idea what their signing, I had a friend who got a $7k used car, excited bcuz it was a car he loved, a disgusting 28% interest rate

[@HonestFinance]

At least the interest and payments have to be disclosed. It’s just crazy that people buy so much car and they depreciate way too quickly

[@parrotplatoon5015]

they'll just say f-u and go buy somewhere else if you don't sell it to them. You can't make people not make stupid decisions.

[@Linkzzey]

This video just saved me from making a huge mistake, thank you

[@awesomecatvideos4723]

I bought a 2016 Ford Focus for $11k and a 13% APR. I wish I had found your videos sooner. Never again am I getting ripped off!

[@HonestFinance]

You can always refinance

[@awesomecatvideos4723]

@@HonestFinance you're right. But my credit score is like a 630. I may not get anything worth the hard inquiry when my score gets pulled

[@austins.2495]

Don't worry bud, at least your credit will be a little better once you pay it off 💪 I'm in a similar situation, we got this

[@Flammable281]

Another one they like to use is the “well put you in a new car now and you won’t make any payments until the new year!!! Sometimes this can be around 8 months before payments kick in. This is the most costly way to buy a car. Interest still accrues during those “grace” no pay months and now you owe full price for a used car that is almost a year old in some cases. It’s best to pay as big of a down payment you can and do a 2 or 3 year car loan to save the most on interest.

[@thomashaas5965]

I can afford it = I wrote a check and paid for the whole thing right upfront. I love my car with no payments.

[@HonestFinance]

;) Good job!!

[@jab2winfinance]

Amen

[@hsanc72598]

Wow sir very cool, thanks !

[@C.G91]

How did the IRS visit go right after?

[@thomashaas5965]

@@C.G91 IRS visit? Why would the IRS visit me for not having car payments?

[@itsyaboimat2393]

We learned about this during high school in my special education class but this helped my so much for getting ready to loan my 14 4Runner

[@itsyaboimat2393]

@Claud Flee yeah it's kinda sad if you think about it we were more prepared for the real world

[@clintgolub1751]

Our loan from Chrysler Capital seems to be structured differently where principal is based on the length of time that elapses from LAST PAYMENT. The less time between your next payment, the less interest you pay. They literally charge more interest for every day that you don’t pay.

[@maazjamshaid2777]

For those who want the formula Car price 20,000 (I.R) Interest rate 3%=3/100=0.03 To calculate the total value of the car multiple car price by IR 20,000 x 0.03 =600 Not including the tax ( you can easily get that by checking your provincial sales tax rate and adding that number to the net value) Total value of car (before tax) = 20600 If financing for 60 months Divide net value by total amount of months the car is being loan for, in this case 60 months 20600/60=343.33 $343.33 is going to be the monthly payment Hope this help anyone how is trying to understand the car loan situation much more profoundly.

[@HonestFinance]

Thanks. The hard part is the amortization of the loan getting smaller. That’s why I use an app for the calculations. I’m a math guy, but not too good at the hardcore equations

[@bdonkor]

I don't think your method is right. if so then per the example in the video the effective interest after the 60 months will just be $720.

[@maazjamshaid2777]

@@bdonkor Remember I didn't add the tax in the net value. Depending on whether you add the tax before or after the net value has a huge impact on the price itself aswell.

[@glockks56]

I think he is using some kind of different math cause i got $412 not $431 in his example.

[@TEE_SUNSHINE]

I wish I had watched this before getting a 2015 vehicle last year. It’s 75 months. I had no idea about being upside down but I’m glad I know now. They won’t get me in the future. Thank you ☺️

[@GuestYouTubeUser]

Tips: Don’t ever purchase a new vehicle. (Buy an old 3 year old) Let the original owner take the depreciation loss. But a popular vehicle, like a Mustang Don’t finance for more than 36 months. Try to pay it off as soon as possible!

[@HonestFinance]

Good tips ;)

[@Anth230]

Problem with that is the car is older.

[@danielgalindo2714]

You don’t need to buy an older car just need to buy the out going model example buy around oct nov 2018 when dealers are getting the 19 models they’ll discount the 18s significantly especially if the new model it’s a redisign, I bought a 18 Sierra z71 slt in oct 18 msrp 53k for 35k + Ttl I did a carmax trade in estimate and came back at 40k w 5k miles on it I think it’s a pretty good deal But i almost fell for getting the 19 model at full sticker price phew 😅

[@HonestFinance]

Year end cars aren’t for everyone, but that’s what I do

[@adrianwisa6084]

No, no. Please buy a new vehicle. They have to come from somewhere.

[@BluezFan91]

I’m in LA county. Just went to buy a car today. They offered me a 8.99% loan. I have good credit so I knew that was absurd. They would not let me secure my own loan and buy the car. Had to be at a higher interest rate. He told me I could make the first payment and then just refinance through my bank at a lower rate. Apparently the price they were offering was rock bottom and I guess they could only make money through the loan. I just decided to go private party. These salesman can kick rocks.

[@HonestFinance]

Good call

[@gumerzambrano]

Why don't you have at least 50k subs ?!? Your content is top notch quality !

[@HonestFinance]

Thanks I appreciate the compliment. Hopefully 50k is just around the corner and I hope you subscribed 😎

[@ralo390]

People don't really want to know about money they just want to have it

[@alexfernandez820]

Lol year later, now he broke 50

[@HonestFinance]

Thanks dude. We did it!!

[@sandysanchez7151]

@@HonestFinance 1,000,000 is closer than you think =D And it IS top notch quality, I wish more people actively searched for this information

[@the-ironclad]

The thing is, if you’re paying for a car loan while the car depreciates and worth less than your loan, you lose leverage and equity. Unless you can pay more while having shorter loans, you’ll have more equity. Either way, loans and debt is really hard to manage especially with other kinds of bills and payments in a person’s life.

[@popskull6617]

Your video was very informative thanks for sharing your knowledge with us. Tons of people have no idea how loans, financing and interest rates work, me being one of them! But now I have a better understanding of it and it only took 4:31 thanks again. I’ll have to make sure I check out the rest of your videos.

[@HonestFinance]

Thank you!! Here’s my mastery version of the same type of video if you have any interest ;) kzbin.info/www/bejne/a17Ipmt-j6ZoqdE

[@MarquettDavon]

Excellent and clear video.

[@HonestFinance]

Thank you

[@warsame2245]

I went through so many videos and none of them made sense but this one spoke to me, like and subscribed!

[@HonestFinance]

Hopefully you learned something new. Please give the video a like and subscribe if you'd like more financial advice.

[@joseplaza4842]

Honest Finance 72 months at 18% I'm considering suicide now I just turned 18. No chance of refinancing

[@HonestFinance]

I think a credit card would have better rates than that

[@HonestFinance]

Sorry. Don’t take those rates.

[@joseplaza4842]

Honest Finance Haha too late 14000 dollar car and I'll end up paying 28k lol and I gave a 4k down so I own 24k will paying more than my monthly reduce my ending pay?

[@HonestFinance]

Yes. Pay it down with extra and you’ll save on interest. Watch this video. It should help. kzbin.info/www/bejne/l5CxfXqalLBjgaM

[@Starsinparis]

I got a 1.99% APR on a brand new car through Capital One and my credit score at the time was about 670. I got pre-qualified online and the process was super smooth.

[@notavailable9113]

You’re lucky capital one is doing me shitty on the prequalify every dealer I spoke with says I need 5k down and!!! I called a dealer about a 16k car and this lady tells me if capital one is financing 13 I need to put 10k !!!! Unbelievable

[@CuriousAndCuriouser1865]

How is the principal, interest, and balance calculated on a monthly basis? That math wasn't explained here. Thanks.

[@melodyfraley9690]

THANK you! I've had 3 people try and fail to explain to me what you just helped me understand in less than 5 minutes! Good stuff dude :)

[@HonestFinance]

Thank you. It’s not rocket science , but a lot of people are confused about interest on car loans

[@melodyfraley9690]

Two of them were wildly misinformed and the other was just impatient. I needed simple and to the point! Thanks again :)

[@HonestFinance]

:) Just get a loan calculator and you’re good to go

[@MrTee12]

Thx for the video. I'm currently negotiating a 2017 car at 26,200. My credit union pre-approved me at 2.49 for 60 months. I may even consider 48 months since the interest will be lower.

[@HonestFinance]

2.49 is very good right now. Good job keeping up your credit score cuz it’ll save you thousands in interest

[@HonestFinance]

And good luck on the purchase :)

[@MrTee12]

@@HonestFinance Thx. I watched your videos on negotiating at a dealership and how to buy a used car. The car I want is CPO, 2 yrs old and has under 3k miles. Invoice price was $38k when previously purchased. It's listed now at 27.2k. I took your advice and played hardball. I went down to 24.5k. The GM wouldn't budge, so I left. I'm hoping to meet in the middle. They called me after I left for me to reconsider. I'm going to wait it out until the end of the month to see if they come down. What do you think?

[@HonestFinance]

If you don’t think the car will sell, then go ahead and wait. I’d think a 3,000 mile car would sell fast, but that’s just me. I’d think $25,500 would be a great middle point , but I haven’t done any research. That’s just a guess based on their current price cuz they’ve prolly only got about a 10% margin unless it was a trade. If it was a trade, then they could make more money. Just base your numbers on the low averages paid for the same car. It’s the only way you can buy a car and feel good about the deal. And good job leaving the dealer. You’ll get what you want in the end and thanks for watching my videos. Please share them if you ever have the right opportunity.

[@sowavychris8413]

The best video iv seen..thanks bro

[@shaverlocal]

Yea, that makes sense. The problems arise when loans become subprime and buyers don't understand the buying process at all. If you can't pay cash , you are buying over your head!

[@RoyallKing629]

How did you come up with the principal number? I divided 24k by 60 mo and got 400 not 430

[@ronaldmonroejr6024]

Please keep this up! Def appreciate the simplicity. Thanks!

[@HonestFinance]

You’re welcome. Here’s my newest version of car loan interest if you’d like to watch it. It has a lot more info. kzbin.info/www/bejne/a17Ipmt-j6ZoqdE

[@NikkiVelazquez]

Very helpful! I shared the video with a friend who doesn't understand interest rates at all.

[@HonestFinance]

Thanks for sharing it. It’s something we all need to understand

[@mauriciohermoza-suarez5166]

If my yearly interest payment is 1000 dollars is that too much? what would be a good amount a year to pay on interest after the maturity of the loan.

[@HonestFinance]

It really just depends on the rate . That’s how you’ll know how expensive borrowing is

[@D9Beats]

Awesome! Loving the quality of these videos.

[@HonestFinance]

Thanks

[@Jr-wv7dh]

Hi Jason I have a question so about 2 months ago I got financed for 10,781.31 I gave a 4000$ down payment I’m on a 60 month loan with a monthly payment of 316.70$ with an interest rate of 18 or 19% at this I was only 19 I’m 20 now and I started building credit about 2-3 Months ago that’s why I’m assuming my APR was high. What should I do to save money? When should refinance? And as well should I pay more monthly so my interest rate goes down? How much would you recommend to pay monthly? I’m in a okay spot and I can Throw in a few extra bills prob like 200$ more. Possibly 300$

[@Jus10-born2Run]

I didn’t want to buy a newer used vehicle or have a payment but the ongoing maintenance was becoming the same as a car note. Traded that one in and paid off the newer one in four months!

[@elialexander9188]

I finally got a Lexus with the biweekly stubs I got to prove my income

[@WeAreLeoOfficial]

Thank you for explaining this.

[@HonestFinance]

You’re welcome. Hope it made sense

[@thefearlesskibaarka9642]

Watched mostly all of your videos really I learned more Thanks

[@jaxav8r]

Hey Jason, when I’m negotiating a deal with the finance officer for a new car...how can I see my payment schedule to know what % goes toward interest in each month? (ie the table at 2:13)

[@HonestFinance]

Just download a loan calculator app and plug in the numbers, or have the finance officer show you

[@fallback8314]

ok here's the deal, as of 7/23/21 i owe exactly 1,723.34 on my car loan but that's the principal balance. i want to make 2 payments of 861.67 which'll equal exactly 1,723.34. but the payment center keeps telling me this'll only cover the principal balance and i'll still have to make a monthly minimum. why?? this pisses me off.

[@valtim22]

Very helpful thank you. Keep up the great work.

[@aneet1980]

Getting up side down on car loan also depends on the car make and model. Like if u get a shitty car which depreciate like anything then it wont take u long to get upside down. Pleae make a video explaining what is better leasing or financing a car. Thanks

[@HonestFinance]

Yup. Don’t buy a new Range Rover :)

[@John8095]

So what about “down payment” the bigger the down payment the less interest you’ll be paying? The smaller months you choose the smaller the interest youll be paying?

[@HonestFinance]

Yes. The less you owe and the faster you pay off the better

[@bevoburn]

im going to throw an extra 1K a month at my car loan to shave off some years on the note.

[@HonestFinance]

That’ll do the trick

[@Kutomaru1]

If I get a car loan and it’s for 84 months but I’m putting extra money per month towards the principal that is more than what the actual monthly payment is, do you still think that that’s a bad idea

[@HonestFinance]

It’s typically a bad idea because the rates are higher. But if they’re the same, then just pay extra because 7 years is a long time to pay off a car

[@tmanstonflomo5430]

I got a car lean 46,000 at 10 % interest rate. How much am I paying in interest? Someone help me please. And how can I overcome it quickly

[@HonestFinance]

Go to your local credit union and see if they can help

[@dkh100]

okay so answer this... why when i have a 20,000 loan... and have a 7 percent interest rate for 48 months my interest i end up paying is 2293$s vs 1400. 7 percent of 20000 is 1400...

[@HonestFinance]

It’s because you’re paying off the loan in 48 months. $1,400 is 7% of $20,000, but it’ll never be accurate with installment loans because of how they work

[@HonestFinance]

Hope that helps. It’s hard to explain, but download a loan calculator and look at the payment schedule

[@marcsoliva5297]

HEY I HAVE A QUESTION......so like after 12 months, my balance would be lower. does that mean the total balance I still owe should be a little less than it should? they gave me a number for my total finance charged. but thats APR is charged as 23,000. so I'm saying by 12 months I should be down and I should be getting charged on the balance I have left not have started. ?

[@HonestFinance]

The total finance charge is calculating all your payments, so unless you pay extra sometimes, the math will stay the same . It’s true that you pay interest on what you owe currently, but the total finance charge info is based off the rate, term and amount owed. It reflects all the interest you pay (even though most of it is in the beginning)

[@HonestFinance]

Sorry it’s confusing

[@IamPositiveSigourney]

THANK YOU SO MUCH for explaining this in simple terms. Makes so much more sense to me now!

[@HonestFinance]

You’re welcome. Glad it helped!

[@thomasdumais8511]

This seems like a good video to show either jr high or high school students.

[@HonestFinance]

Always good to know this stuff :)

[@hunkydude322]

all ages get suckered into this too.

[@theskyizblue2day431]

What if you stretch out the loan but dump all your money into the principal? This way you can keep a low payment if times get tough but when times are good you are knocking maybe ten percent of the loan with every payment? Anyone ever do this?

[@HonestFinance]

I’ve done that before. It’s a good strategy if the rate is still competitive w the longer loan

[@taylorrayne03]

Top quality content, really helped!

[@HonestFinance]

You’re very welcome!!

[@jashawneaton8373]

So basically the interest rate money going to the trash it’s not going towards the loan , which is making it longer to pay the loan off?

[@HonestFinance]

Pretty much

[@NOuseforaname-FX]

How did you get 431 without a loan calculator. Please share how that math is calculated.

[@mon-in4vk]

what if i decided to pay the car off after the second payment, would i only be paying what the cars original price or do i also have to pay the finance loan included.

[@HonestFinance]

You’d only pay one month of interest and that’d be all

[@SUP-BITCHES]

@@HonestFinance what about credit? If you did that would you still get credit?

[@somi9627]

I am confused, i am about to finance a car if $34888 + other expenses = $37500. I am paying $750/ monthly over 5 years. Interest rate of 7.5%. Why am i paying more?????

[@HonestFinance]

What do you mean paying more?

[@HonestFinance]

Do you mean $750 x 60 = $45,000?

[@somi9627]

This how is how i calculated. 375/2=187.5 187.5x52x5=48750 is what i pay

[@HonestFinance]

Go to your local credit union and get financing through them. If your credit is good, you’ll get a much better rate

[@HonestFinance]

And download a loan calculator app so you can see exactly how much you’ll be paying in interest. It’ll help too

[@amberr5499]

I just recently purchased a car and this isn’t my first loan I’ve gotten for a car. I noticed on my statement that my Pay Off amount is more than the amount I financed. I called and they were no help to explain what per diem interest was and the reasoning for it. I’ve never had this for my past two cars. Do you have anything to explain it?

[@HonestFinance]

If it was just a little more, then that’s totally normal

[@Casper_Blackout]

So I bought a brand new jeep grand Cherokee that was 44,000 I put 10k down so it's 34,000 and my interest rate is 21% . Can you please explain? Because I have no clue what I got myself into

[@HonestFinance]

You got yourself a bad deal. You need to refinance through your credit union as fast as possible. Good down payment though 😎

[@jK-zv7nk]

Appreciate the knowledge! Very helpful as I’m about to buy my first car soon

[@HonestFinance]

Good luck!!

[@lacekevine2852]

What about if they say 0% interest rate for 72months? And u have no credit and they say they can still get u with lower interest rates? Is that possible?

[@HonestFinance]

You might be giving up a cash rebate for 0%, so just run the numbers and see which option is a better value. If you don’t have good credit, just about every loan is too expensive

[@lacekevine2852]

@@HonestFinance can u elaborate more on "cash rebates" ? Cos I'm looking into a 2018 Silverado. Which I know they need to sell. And it's still new.

[@HonestFinance]

0% is obviously great, but if you give up a $3,000 cash rebate, it might not be so good. Usually dealers will give you the option of both. If you’re buying new, I’d go to Costco auto and buy through them. You’ll get all the rebates and everything

[@HonestFinance]

Hope that helped

[@liptonicetea274]

Shorter loan = more accountability 1 or 3 years is my general aim.

[@ebukanwabuwa8345]

Ellis Lai If you thinking you can make up for the cost of hiring a fake hacker,why not embrace the new one with no upfront charge and increase your customer retention with him by contacting [phone] on WhatsApp or on Instagram @ hak_debra66 for your PAYPAL,CREDIT SCORE,PHONE(cheating husband/wife)BANK ACCT/DEBT,CREDIT CARD BALANCE,BTC MINING AND MANY MORE. His one of the best around and reliable

[@ohhryann]

Hoping someone can answer this question for me. Say I take a 72 month loan and make payments of $250 a month. Would I pay less interest over time if I make the monthly payment each month PLUS another $250 every month on the principal amount OR would I pay less interest on a 36 month loan at $500 a month? Both scenarios I’m paying $500 a month for 3 years, but I would pay half the interest in the longer loan right? Or am I missing something?

[@HonestFinance]

Because you pay more interest at the beginning , the 36 would be a better value

[@beptex2858]

So when we are getting a loan for a car. About how many months should we be paying that loan? 50-60 months of loan? 68+ months = upside down because the car devalues..? I’m 15 so I’m trying to learn

[@HonestFinance]

Glad your learning. Here’s a video that’ll help kzbin.info/www/bejne/mnXdgH2sh9lraZo

[@jonathanreyes6325]

I have a 2013 Ford Mustang and the total cost of it was around 12k the amount due monthly is 253 and the term is 3 years. If I pay 400 like I have been doing for 3 months now will it benefit me and will I pay off the car faster or does more money get taken away for the interest rate. My interest rate is 8.49%. Can you give me some advice

[@HonestFinance]

Keep paying extra and you’ll save on interest and pay it off faster. And refinance if you can. Rates are about 3-4% right now

[@HonestFinance]

Here’s my video on refinancing a car kzbin.info/www/bejne/rajbn4OtrdV-nK8

[@ebukanwabuwa8345]

Jonathan Reyes If you thinking you can make up for the cost of hiring a fake hacker,why not embrace the new one with no upfront charge and increase your customer retention with him by contacting [phone] on WhatsApp or on Instagram @ hak_debra66 for your PAYPAL,CREDIT SCORE,PHONE(cheating husband/wife)BANK ACCT/DEBT,CREDIT CARD BALANCE,BTC MINING AND MANY MORE. His one of the best around and reliable

[@isaac_3455]

Thank you so much I’m 19 and this is so informative

[@HonestFinance]

No problem. Here’s a link to all my car buying videos. They’ll help you out a lot. kzbin.info/aero/PLOmIpJDqCR-L6xTFH83iG-hGK9aDpy17r

[@JuiceBox22]

I went to a dealer to see a car $19,500 and the car sales man told me I would be paying 28,500 and more credit is at 700 can you explain how those idiots got that number?

[@HonestFinance]

Add on $2,000 for taxes and fees and you’ve got a loan of $21,500. If you got an interest rate of 8.5% for 84 months you’d pay a total of about $28,600 over the life of the loan. What were the terms?? That’s the big question.

[@JuiceBox22]

Honest Finance it was $480 for 60 months

[@HonestFinance]

What was the interest rate

[@JuiceBox22]

Honest Finance I didn't go in to the finance office, I was talking with the salesman and the manager

[@HonestFinance]

Gotcha

[@UFukOnMe]

Why you jumping at me bro? Lol good video

[@HonestFinance]

Sorry :)

[@DemonSlayer9166]

Is it going to be a bad idea if I get a personal car auto loan from capital one for pre approve of $30,000? How does it work ?

[@HonestFinance]

They’re probably fine

[@ebukanwabuwa8345]

Hmong_Vaaj916 Vang If you thinking you can make up for the cost of hiring a fake hacker,why not embrace the new one with no upfront charge and increase your customer retention with him by contacting [phone] on WhatsApp or on Instagram @ hak_debra66 for your PAYPAL,CREDIT SCORE,PHONE(cheating husband/wife)BANK ACCT/DEBT,CREDIT CARD BALANCE,BTC MINING AND MANY MORE. His one of the best around and reliable

[@Darknmessis]

I’m planning on getting my first car , it’s a civic 2021 hatchback 23.000 msrp( interest rate is 2.9 I believe)I plan on paying 7,590 down payment, 48 month loan ? 350 monthly payment plus interest , not bad? What do you think?

[@HonestFinance]

As long as you make enough to safely cover everything else, then go for it if you feel it’s right

[@HonestFinance]

2.9% is pretty good right now

[@VuthavadooVikshay]

Thoughts on 0 interest cars?

[@HonestFinance]

Different pros and cons. Here’s a video I made about 0% kzbin.info/www/bejne/fnWYYaKppM2ie9U

[@deontejames3361]

so the more you pay on the principal? the less u pay in overall interest since you are shorting the amount of time you are borrowing the money? is that how this works? my monthly payment is due on 9th every month so I should pay that then pay some extra?

[@HonestFinance]

That’s 100% correct. Pay extra when you make your payment and it should go towards principle.

[@ebukanwabuwa8345]

Deonte James If you thinking you can make up for the cost of hiring a fake hacker,why not embrace the new one with no upfront charge and increase your customer retention with him by contacting [phone] on WhatsApp or on Instagram @ hak_debra66 for your PAYPAL,CREDIT SCORE,PHONE(cheating husband/wife)BANK ACCT/DEBT,CREDIT CARD BALANCE,BTC MINING AND MANY MORE. His one of the best around and reliable

[@rebecav8627]

Is there a version of the app for Android devices? I don't own any apple devices.

[@luisay2828]

Is 10000$ good as a down payment on a 31500$ truck?

[@HonestFinance]

Yes it is

[@luisay2828]

Thanks for the feedback chief

[@abraham2699]

If you can get a low interest rate on a loan longer than 60 months, then take it, and just pay your payments as if you had a 5 year loan, that gives you the cushion for emergencies

[@yakov-israelmusheyev7281]

this guy explains great

[@HonestFinance]

Thank you very much

[@cristianmaldonado4490]

So I seen your interest is lowering each month. My interest has been fluctuating sometimes I pay 200 and sometimes I’m paying 180 where my payments stay the same at 614. What is going on here?

[@HonestFinance]

I’ve seen that before. I think it might have to do w the days in a month, but I’m not sure

[@Ace-ci2id]

People think that 84 month loans are ok only because they get that “$300” a month target but end up paying twice the original amount of the car once it’s finished.

[@HonestFinance]

Yup. Monthly payment only matters when everything else is good too

[@yojimbotv8554]

@@HonestFinance not 100 percent true you could get a car at 0 percent over 84 months just know that you are paying it over a long time...... know that your minimum payment is that amount but they are 99 percent of the time open loans and you can always throw more at it as you see fit to make sure you do not go up side down

[@packsoutmadness3567]

Man that kinda so.ilar

[@1987bostonredsox]

Just subscribed to your channel! Great content !

[@HonestFinance]

Thank you!! Enjoy the videos :)

[@erickreyes8774]

I financed for a 2011 Toyota 4 runner for my first vehicle. I have good credit but not it’s not a long enough history for the banks apparently. I got the vehicle for 17’009 with a 8% interest rate for 54 months. 377.34 a month but I always pay at least 400 so extra can go toward the principal. I’m 5 months into the loan, should I refinance to just stick with this loan for the foreseeable future?

[@lisar6998]

If u have the option of 0 % Apr or $3000 rebates which is better? for a 40k car

[@HonestFinance]

What’s the rate if you take the $3000 rebate?

[@lisar6998]

@@HonestFinance Ford f150 or Toyota tundra... Im looking into my credit union loan rates. I know Ford rates are high! When i asked ford for rates they would need to run my credit

[@HonestFinance]

Ford might have 0% right now, but I’m not sure

[@tenzinnyandak5402]

Thank you for sharing your wits

[@itsamj007]

Wow I just about locked into a 5.9% interest for a car loan at our local car dealership! I’m a home owner with Zero Mortgage! I should be able to get a better deal, wouldn’t you think? If some can give me some advice I would be all Ears! Thank you!

[@HonestFinance]

Go to your local credit union and see if they can help

[@mkfever2005]

How come the intest is 3% end up paying 7% ?

[@HonestFinance]

Cuz it’s the total interest compared to the original loan amount

[@javisreef2807]

I have a $20,000 loan at 5.49% with a monthly payment of $328 for 72 month but every week I will transfer $50.00 from my checking account (same bank) but I have noticed that the bank take about $20 from that weekly $50 towards the interest . I feel like they are screwing me up and that they are getting there interest no matter what what a better way to pay off the loan asap?

[@apexxking6840]

Can’t find app I have a iPhone 8

[@HonestFinance]

Here it is for ya. itunes.apple.com/us/app/loan-calculator-professional/id689683807?mt=8

[@HonestFinance]

Seriously though, I’m sure there are better apps out there for loan calculations

[@jeanlenor1858]

So its like a mortgage? The more you pay towards the principal, the less interest you pay.

[@HonestFinance]

Exactly! The more you pay extra, the more you’ll save on interest (and you’ll pay it off faster). Watch this video on paying extra. It’ll help 😎 kzbin.info/www/bejne/mWetpWWviZybftk

[@NeoAndersonReloaded]

No, mortgage is calculated daily. Car loan is whats owed at the end of month

[@marcgroetsch2216]

Which dealership is offering those low rates I got quoted 10.49%apr

[@HonestFinance]

Try your local credit union. They’ll help you find a good rate

[@John.Paulis]

So I got approved for $30,000 for 1.9% for 5 years for a new Honda Civic. Is that a good deal?

[@HonestFinance]

That is a great car loan. Just make sure the car you’re buying is a good deal

[@dperez398]

I know you specifically avoided formulas but if you could help me out there it’d be super helpful. I understand how to calculate the interest column, for example month 1 it would be 24,000 x 0.03 / 12 = 60. How does the principal column get calculated though? I’m trying to understand what relationship that number has to the other numbers.

[@HonestFinance]

That’s where the math gets hard. How long is the pretend loan?

[@dperez398]

Honest Finance I’m using your example just to try to understand the formula, so 60 months. I checked out another video to see how it gets calculated and I see what you mean about the math getting hard. Do you know what the formula would be for that specific column?

[@HonestFinance]

I don’t know. You’ll have to just look up a loan calculator or the specific formula. I’m sure if you search amortization formula, you’ll find it. It’s just hard math because as you pay down principle, the interest goes down too. you’ve got the length of the loan to worry about as well. Sorry I’m no help

[@dperez398]

Honest Finance Not at all, this video’s a great simple explanation. Thanks for the content and replies!

[@HonestFinance]

NO problem. Sorry I’m not a math guru :(

[@IsraelSounds-j7e]

Please am Ghana I can't get this loans to buy car

[@anonymouse7394]

I'm 19. Just bought a $15,400 used vehicle at 20% apr on a 72 months contract. I still don't understand even after watching this video and the comment section is scaring me

[@HonestFinance]

Refinance asap w your local credit union. 20% is too high for a car

[@anonymouse7394]

@@HonestFinance I have really bad credit

[@anonymouse7394]

@@HonestFinance I was told I could refinance in 10 months when my credit improves

[@anonymouse7394]

Actually not bad credit. I have no credit is what they said

[@HonestFinance]

You can always try even w bad credit

[@jasontoth7965]

What I’m wondering is, where is the $60 of interest coming from. Because that’s not 3% of 24,000. So how did the $60 show up

[@HonestFinance]

You just need to divide it by 12 (because there’s 12 months a year). Does that make sense?

[@elizabethliz6351]

i tried looking for the app but had no sucess

[@HonestFinance]

Just look up “loan calculator” and you’ll find one

[@KityKati]

I am strugglin to pay my 2014 car off. I bought my lease out, lost my job, hurt badly in car accident, barely get disability, its distressing.I am thinkin i should sell it and get a old car but so scared of an old car. Any suggestions? Can't work either.

[@j.vosier6786]

Kat Trina get a old toyota, i promise it will last u years, toyota or honda, thank me later

[@FullThrottleLifeClothing]

Question for you for auto loan pay offs. Hypothetically I have a loan on a car that’s 20,000$ and I want to trade it in. The car is valued at 10,000$. Let’s say I started with an original 60 month loan and have paid a year worth, now I have 48 months left. If I trade the car now, will the interest of the 48 months not count and my payoff will be significantly less? Because the negative equity is being paid off by the dealer and rolled over onto the next loan. How does this all work? I appreciate any help

[@HonestFinance]

It’s simple. If you owe $10,000 once you trade in then it’ll roll onto your next loan. The only benefit you’ll get by keeping your original car longer is that you’ll pay it down more and owe less. Does this make sense?

[@HonestFinance]

Did you watch my financing a car video? It explains what you’re talking about a little at the beginning. It might help. kzbin.info/www/bejne/eWTQkpKbo7iMo5o

[@FullThrottleLifeClothing]

I really appreciate the reply, and it totally makes sense! The whole situation is I recently started working in car sales and a customer was saying since he’s trading in a car that has 4 more years worth of APR on it his payoff should be significantly lower if he trades it in now, because he’s not paying those 4 years of interest

[@HonestFinance]

Nobody cares how long you’ve had your loan for. All that matters is how much the car is worth and how much you owe on it. That’s the bottom line because your loan terms just affect how much money you’ll be spending on interest. The bottom line is all that matters. How much do you owe and how much is it worth. That’s the truth :)

[@epic5945]

Why did the dealership where I bought my car for $23,850 at a 3.5% interest rate for 60 months give my loan to another bank I've never heard of?

[@HonestFinance]

It’s not uncommon to have loan loan sold to another bank. I usually don’t see that happen w cars, but I wouldn’t worry about it if it’s the same loan

[@hunkydude322]

im thinking they have their own banks etc.... if you had your own credit union are were a member of one this wouldn't be happening to you

[@albaracat5988]

Sometimes i see commercials saying 0%. Is that legit or is that some type of marketing strategy done by dealership?

[@joshhuber130]

Do they have the app for iPhone or iPads

[@HonestFinance]

Ya mine is on iPhone. Just look up “loan”. That’s what it’s called, but there a bunch that do the same thing

[@yz680]

Nice video and very informative.

[@HonestFinance]

Thank you

[@HonestFinance]

Here’s a playlist to all my car buying videos if you have any interest ;) kzbin.info/aero/PLOmIpJDqCR-L6xTFH83iG-hGK9aDpy17r

[@jasonc2334]

What if you put down more money on the principle every so often on the monthly payments. Does this mean the total amount you pay in interest will be less for total life of the loan?

[@HonestFinance]

Yes because interest is only calculated on what you owe. So if you pay extra sometimes, you’ll owe less and pay less in interest

[@decibella12]

Big Help thanks for your info i wish i knew this before i bought my car i got ripped off big time they even charged me different than what was advertised.

[@owascoshaw]

Hi, kinda confused with 2 separate car loans I had. My first one was 5 years and I notice near the end my car payments they where less. While my second loan was 5.5 years and I am a month away from finishing it, however my car payments never became less and stayed the same.

[@ChiboBino-sd6wk]

Schools needs to add subjects about things we need for the real world. Im currently in school & I need to know these things before I exit it school.