Car Loans

[83turbomon]

How much does a car loan cost? im new to the world of finances, buying stuff, saving my money, intrest rates, percentages, collateral, and all of that other real world adult bullspit.
I want to get this car and want to know what the monthly payments would be...
1996 Impala SS

 

[charlief1]

Well the easiest way to tell you how interest is done, take the purchase price and mulitiply it by what the interest by the number of years. If it's a 5% APR then say $2000 by 5 years. for a higher rate you'll loose money and end up upside down, which means you owe more than it's worth. Sadly this is the norm in America.

 

[83turbomon]

Well the easiest way to tell you how interest is done, take the purchase price and mulitiply it by what the interest by the number of years. If it's a 5% APR then say $2000 by 5 years. for a higher rate you'll loose money and end up upside down, which means you owe more than it's worth. Sadly this is the norm in America.

the car has 6700 left on the loan, and thats at 5%, so about 8700

 

[charlief1]

Used Car Value - Chevrolet IMPALA SS-V8 Sedan 4D

 

[novaderrik]

most personal loans i've ever gotten wound up costing having payments of around $100 a month per $1000 borrowed for a 1 year loan.
so $6700 would be $670/month if you get a one year loan, $335/month for a 2 year loan, etc.
also don't forget to factor in the full coverage insurance you will have to carry on the car and things like how much gas (25mpg if you are lucky) and maintenance (how much are the proper 17" replacement tires for that car?) will cost.
but really, go ask your banker (or preferrably someone at a local credit union. banks are evil) what they can do for payments and what not. they may not even want to finance a 14 year old car for that much- or even at all.
google found me this online calculator.
Auto loan calculator - Bankrate.com
keep in mind that since you are young and probably don't have established credit, you might not get better than a 10% interest rate.

 

[alwayscode390]

Banks usually wont give a loan on a car over 10 years old.

A 5 year loan at $6700 should be around $130-$150/month ---

 

[TexasT]

some friendly advise, if I may. If you don't understand it you don't invest in it. Borrowing money is a real snakes nest even for the seasoned veterans. There are pitfalls at every turn and the small print on those contract forms is small for a reason. Read and understand anything you sign up for.

Your best bet is to pay cash for any depreciating liability. The only thing you should borrow money for are appreciating assets but no one I know does this including me as I borrowed to buy a house.

The intrest that has been described above is simple intrest. Compound intrest works in an accelerated way. Credit cards are an excellent example of compound intrest. They just keep charging intrest on the principle and on any unpaid intrest. It adds up fast.

Bottom line. Save up and pay cash. Check out a book by R. Kyosaki called, Rich Dad, Poor Dad. It might help explain what I am talking about.

 

[turbo39151]

To add to the discussion:

1. Save you money and pay cash if you can. If you do not understand interest it will kill you.

2. Consider all the options (ie: how many SS impy's are out there and what is the average value? Are there better deals? What will it cost to insure? (you're young and it's a v-8 =expensive) What will it cost in maintenance? (It is an older performance car so you can bet that someone has made it perform in the past) What will it cost in fuel? etc.... You see what I mean? There's lots of factors.

3. Then there's the value question. What are you buying this car for? Collectability, restoration, a commuter car? IF you buy this car of $8700 as you state above, and it's taken you 5 years to pay it what do you have at the end of 5 years? I'll tell you- a 19 year old car with over 200k on the clock owned by a young male... Guess what that's worth? I'll bet it won't be
$8700... Doesn't look like a very good investment does it?

Do read the Rich Dad Poor Dad book. It does have some good info. I can't say everything he says is 100% spot on but I took a lot of good info from it.

If you want an investment just remember this:
A liability is something that takes money out of your pocket.
An asset is something that puts money into your pocket.

(ex: a house or even a car for that matter is a liability, not an asset. If you stop working it still requires money from you-even if it's paid for. Thus, it is a libility. However, if you sell and realize a profit then it converts to an asset. I suppose the filpside is that most houses tend to appreciate((at least they used to)) in value while most cars depreciate)

Which one do you want?

Just some food for thought.