Calculate Installment

[Jc85]

Hi,

 

Need some advise on how to calculate the monthly installment of owning a car.

 

Assuming:

 

1) June 2000 register car

2) Value quoted by dealer = $55K

3) 10% downpayment = $5.5K

4) Loan amount = $49.5K

5) No. or Loan yr = 7 yrs = 84mths

6) Interest rate = 3.5%?

 

How to calculate monthly installment?

 

Thank you

[Offroader]

Ar...........(((49500x3.5pct/100)x7yrs)+49500)/84mths..........that is if it is not on reduc balance mth and not on floating rate......

Edited December 30, 2002 by Offroader

[Seansene]

according to my DIY spreadsheet, the monthly installments should come up to $733.66

Edited December 30, 2002 by Seansene

[Jc85]

Now I get it.... the 3.5% is for the full loan value throughout the 7 yrs. at 1st I though its calculated based on the remaining loan amount for each yrs....

 

thanks

[Gadgeter]

the interest rate for cars less than 10 years old and loan period of 7 years should be around the range of 2.6 - 2.7%

[Offroader]

That is why..it depends if it is on reducing balance method...then the figures would have been diff

[Jman888]

yah, i thought 3.5% is on the high side, unless u do high loan but still

[Jc85]

is that so... thank u for updating.

 

cheers

[Jman888]

have u ever come across a car loan base on reducing balance ??

[Jc85]

"reduced balance method"??? can explain more? I'm idiot to such finance thingie....

[Jman888]

dun worry about that, what Sean has calculated is correct, about $733.67 per month

Edited December 30, 2002 by Jman888

[Offroader]

Yep......but can recall whos.......actually....quite jialat....imagine, they r assuming that u owe them so much for 7 yrs! and interest is charged accordingly

[Jc85]

Thks bro.

[Offroader]

As the time goes on, u owe then less and less, so the int should get less and less....but think the rate pretty high.....

[Jman888]

for the finance company, the existing method is simple and easy on admin and accounting. But for customer, we pay flat rate (interest) on full amount for 7 yrs .

[Jc85]

hmm... in that case. i dun think the monthly payout will be of much diff rite?

[Jc85]

ya... sounds like a win win situation for them man....

[RadX]

The rate quoted per month is correct!!! $733...and the rate is very high!!

 

The max rate is now 2.7%...pm me if you wan mure assistance