Overhaulin'

Can anyone help me calculate the interest on a car loan of $20,000 for 5 years at 7% ? Formulas ?

I know there are alot of online calculators available, but I need to know how the interest works for car loans ? I am trying to calculate the interest myself without using an online calculator and my monthyly payments.

Public Comments

1. $1400 per year ie 7000 in 5 yrs. Monthly pmt shud be around 450.
2. Formula: A(1 +/- Interest rate/number of times compounded (in your case, it'd be 1)^(number of years or time)
3. monthly payments are around 396.00 give or take. Also, keep in mind how the finance department of a dealership works. It's the same as mortgage companies. The borrower has there credit run, and then sent to 20-30 finance companies. Follow this example: Borrower: Good credit, but how do you know? Well borrower went to annualcreditreport.com and had a free credit report run on themselves. Finance Manager: Get's responses from the top 5 finance companies with interest rates anywhere from 5%-6.5%. He/she decides that they will go with company A, cause the rep. visits them quite often, and they always bring doughnuts! Company A qualified borrower at 5.5%, but the finance manager makes nothing at that rate. So they then add another .75%, so end rate is 6.25%. Borrower doesn't know any better so they take it. Not to mention the underbody coating and all the other products finance manager hits you for, cause they get paid on that too. Suggestion. Run your credit with a repudible company, this will not lower your score. You will then have an idea by seeing your score on what you should prepare for. Find the car you want to purchase, and negotiate the price. Your next step is to then shop around for the auto loan. As long as this doesn't exceed 15 days, and each place you goto is running your credit for an auto loan. Your credit rating shouldn't have much movement at all. Let me know if this helps.
4. Just call the bank and ask them to send you break down on the loan.
5. This may look kind of crazy but it's correct. I've had good luck here... http://auto.deal4-you.com See ya.