If I loan $7000 AUD from a bank to buy a car, how much would I have to pay back?
Car dealer will let me finance the car at 10% interest for repayment
How much will a bank want
First time car buyer btw
3 to 5 years
- PuzzlingLv 72 months agoFavorite Answer
The car dealer (and the bank) will want as much as possible so they will encourage you to pay as little as possible each month for as long as possible.
I used an online loan calculator and got the following values for the dealer's financing:
3 years (36 months) amortized monthly:
Monthly payment: A$225.87
Total payments: A$8,131.33
Total interest A$1,131.33
4 years (48 months) amortized monthly:
Monthly payment: A$177.54
Total payments: A$8,521.83
Total interest A$1,521.83
5 years (60 months) amortized monthly:
Monthly payment: A$148.73
Total payments: A$8,923.76
Total interest: A$1,923.76
I would just ask a Bank directly what they can offer you instead. It all depends on your income, credit worthiness, value of the car, length of the loan, etc. Use the values above for comparison.
- ALv 42 months ago
That depends on the amount of the loan, the length of the loan, and your credit history. You’ll have to just ask the bank.
- EvaLv 72 months ago
Depends on the length of the loan. 10% is a high interest rate. Look around for a better deal.
- ?Lv 72 months ago
It is always good to avoid the car dealer loan . Their are many ways to do interest and the dealer will do you no favors despite what they will tell you .