Setting a car loan

[Andy Pastuszak]

Thank you.  That does help.


On 02/21/2015 01:00 PM, jcard21 xxxxxxx wrote:
> On Sat, Feb 21, 2015 at 12:08 PM, Andy Pastuszak <apastuszak at gmail.com> wrote:
>> • Loan Principle Value $16,261.32
>> • Loan Duration (number of years) 5 years (61 payments)
>> • Loan Interest Rate 3.89%
>> • Your Payment Frequency (monthly?) monthly
>> • Bank's Required Monthly Payment Amount $299.11
>>
>> Car was purchased on 12/22/2014.  First payment was due on 2/5/2015.
> Using your figures ($16,261.32 principle, 61 months, 3.89%) , I get a
> monthly payment of $294.23 (using my Texas Instruments BA-II financial
> calculator.)
>
> Using 60 months, I get a monthly payment of $298.67, a lot closer to
> the dealer's amount.
>
> Could you and the dealer have included any other fees (motor vehicle
> registration, under-body weatherproofing, etc) totaling $269.46 on top
> of your loan principle of $16,261.32, so your actual/real loan
> principle would be the $16,530.78 ?
>
> A Loan Principle of $16,530.78 would give you a monthly payment of $299.11?
>
> I'd go back to the dealer and politely ask them to explain why your
> calculated monthly payment  doesn't equal their monthly payment of
> $299.11.
>
> I'd start by verifying with the dealer the number of months/payments
> (60 or 61), and I'd verify the Loan Principle ($16,261.32 or
> 16,530.78).
>
> I hope this helps.
>