how to figure interest rate

[redriverhunter]

My daughter and I went to look at used cars, they offered her this 11000 out the door (this numbers have been rounded out for ease) 280.00*72 (months)=20160, not a good deal in my opinion. They would not tell us the interest rate. I have searched the web for a formula and no luck, probably not asking the right question. Does any one know the formula to find the interest rate? thanks rrh

[AnotherNew1]

Wow 22.551% Go somewhere else quickly

[AnotherNew1]

If im not allowed to post a link here please delete it.

http://www.calculator.net/interest-r...=280&x=58&y=16

[rockrat]

Interest= Principal times rate times time
Rate= interest divided by principal times time
R= 9160/ 11,000 x 6
R=9160/66,000
R=13.8%

this is simple interest though. I am sure the car loan is not simple interest. Go online to calculator.net and plug in the figures and you will find just why they won't tell you the interest rate, as it came out to 22.55% interest.




oops, someone beat me to it!!

[popper]

Two problems. 72 month loan, wil the car still run then? 22% compound interest isn't the only problem.

[Bzcraig]

Regardless of interest rate, I would not darken the door of a dealer who won't quote the rate. What state are you in that it's legal to not put the interest rate on the documents?

[Rufus Krile]

Those rates are illegal in many states... Your 'redriverhunter' nom de plume makes me think you might be in N. TX. If so, the seller is definitely out on a limb. That percentage is considered 'usury' in Texas and there are some strong penalties for it. Like 3X the principal.

[sawinredneck]

In the future it's called an amtorization calculator. Yes, it took me three time to get that typed correctly!

[redriverhunter]

Thanks for the replies, I knew it had to be up there. I hope this experience showed her, that they did not have her best interest at heart.

[TexasGrunt]

Thanks for the replies, I knew it had to be up there. I hope this experience showed her, that they did not have her best interest at heart.

NO car dealer had HER interest at heart.

[Love Life]

RUN, don't walk, AWAY!!!

[Finster101]

Sounds like a buy here pay here lot. Never use them.

[WILCO]

They would not tell us the interest rate.

Answer is simple. Do business elsewhere.

[Handloader109]

72 months of payments for a used car? 48 months is ridiculously long, even if it is almost new. Cash only for usd cars. But this lot is starting away from. Much better to buy used from individual

[Adam20]

I stopped by one of those finance here dealers and asked about a car, they did not have a cash price to just buy the thing. Monthly payment only

[dragon813gt]

72 months of payments for a used car?

I'm surprised you could even get a six year loan for a used car. W/ new cars that term is more popular then ever. But it's not surprising w/ the high cost of new vehicles. I have a strict limit on how much I will spend on a used vehicle. I don't want a payment higher than $250 at most.

[sawinredneck]

In 2007 I got a 72mo loan on a 2004 F150 with 11k on it. The mileage was low enough the bank considered it as new. Even got a decent rate, made the wife and I feel more comfortable about buying it with the lower monthly payments, which actually saved our bacon when I got laid off a year later!
72mos isn't always a bad thing for a car loan!

[redriverhunter]

This car lot was not a tote a note place it was a major car dealer in the area. I believe the experience was good for her, she had to see how they sell the monthly payment, not the interest rate or the true cost of a car. She will continue driving he present car with out a/c, it is not worth spending money on a/c.

[HATCH]

Avoid ANY car dealership that only sells used cars AND offers on lot financing.

Unless she has really BAD credit then I would avoid this deal at all cost.

I saw a truck I wanted at a dealership a decade ago.
So I called them up and asked them "how much is this truck"
the women said X amount per week.
I said whats the CASH price to buy it outright.
She said they only sell it buy the week payments.....
Interest was crazy. Ain't no way with a almost perfect credit score am I paying something by the week... LOL

[Huskerguy]

Here is the problem. They are selling you on the monthly payment rate. That is the biggest con going - "you can get into this car for only $299 a month for the rest of your adult life." Listen to Dave Ramsey and some of the people who call about their car payments. It is ridiculous. I read an article about 8-10 months ago talking about the economy and it said 2017 would be a good year to buy a car. People overbought coming out of the recession when companies offered rebates, low or no interest and payments for 72 months or even more. They then depreciated like normal and the payments go on forever. People get upside down in a vehicle in a hurry. I am seeing bargains all over the place in my neck of the woods. Dealers are hurting to sell units and inventory is high.

I educated both of my 30's aged kids on buying cars and they have thanked me ever since. This place you are speaking of is obviously a corner sales place and not a reputable dealership. I could be wrong.