Anonymous
Anonymous asked in Science & MathematicsMathematics · 2 months ago

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 

Update:

First time car buyer btw

Update 2:

3 to 5 years 

4 Answers

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  • 2 months ago
    Favorite 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.

  • A
    Lv 4
    2 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. 

  • Eva
    Lv 7
    2 months ago

    Depends on the length of the loan.  10% is a high interest rate. Look around for a better deal.

  • ?
    Lv 7
    2 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 .

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