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OT: New Car Financing ??

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Shelby65

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Apr 1, 2008
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Can someone explain to me what the following example means:

0% financing for 48 months, $27.78 per month per $1000 borrowed.

If that means you pay a fee to have the stated rate, is there a formula which determines the actual borrowing rate factoring in the fee?
 
S

Shelby65

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Apr 1, 2008
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yes. how would i compare the above to lets say another deal 1.9% over the same 48 months without extra fee

i guess what i’m asking is, since its not truly 0%, what is the annual rate with the monthly fee included ? is there a apr formula if i multiply the fee times 48 (months)?
 
S

SCHI_Stadium

Sophomore
Dec 4, 2019
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Shelby65 said:
yes. how would i compare the above to lets say another deal 1.9% over the same 48 months without extra fee

i guess what i’m asking is, since its not truly 0%, what is the annual rate with the monthly fee included ? is there a apr formula if i multiply the fee times 48 (months)?
Click to expand...
What fee are you talking about? The bank on a car loan does not have fees like a mortgage would.
your loan amount consists of agreed upon sale price plus tax, tags and dealer fee minus any down payment or trade equity.
 
S

SCHI_Stadium

Sophomore
Dec 4, 2019
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Shelby65 said:
Can someone explain to me what the following example means:

0% financing for 48 months, $27.78 per month per $1000 borrowed.

If that means you pay a fee to have the stated rate, is there a formula which determines the actual borrowing rate factoring in the fee?
Click to expand...
That also may just be a typo, the $27.77 number is a 36 month loan per $1,000.
 
RUTGERS95

RUTGERS95

Heisman
Sep 28, 2005
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B0ski said:
Well this certainly explains a lot.
Click to expand...
more than you surmise apparently

look it's simple, research and if you still have questions then maybe bring this bs to a football board. everyone wants something spoon fed to them besides, this is pretty basic stuff
 
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S

Shelby65

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Apr 1, 2008
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schi....thanks. i typed #s from memory. the 0%, $27.78 figures were listed as a Honda deal but it may have been over 36 months instead.

honestly, i thought the fees were in addition to a payment based on sale price. factory financing deals never used to be cited that way so thats why i was confused.

as written, it seemed like buying points to lower rates on a mortgage.
 
R

RUScrew85

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Nov 7, 2003
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SCHI_Stadium said:
That also may just be a typo, the $27.77 number is a 36 month loan per $1,000.
Click to expand...

Ah that explains why I had to delete my explanation. He was paying back $13K+ over 48 months. Not $10K.

The $27.70 number is just how much per month per $1000 borrowed. It you borrow $10K, you pay $277.70 a month per your admittedly wrong numbers.
 
R

RUScrew85

Heisman
Nov 7, 2003
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Shelby65 said:
schi....thanks. i typed #s from memory. the 0%, $27.78 figures were listed as a Honda deal but it may have been over 36 months instead.

honestly, i thought the fees were in addition to a payment based on sale price. factory financing deals never used to be cited that way so thats why i was confused.

as written, it seemed like buying points to lower rates on a mortgage.
Click to expand...

And if you really have a 65 Shelby you shouldn't need a new car. ; )
 
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koolraddad

Senior
Mar 13, 2010
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delete the word "month" in your post. It is 27.78 per 1000 borrowed equals the monthly payment.

10K is 278.80. 20K is 555.60.
 
S

Shelby65

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screw...this new car for the wife. the Shelby is the best $6,000 i ever spent. kidding of course. i’m a GM guy...but did you read about how the Bullitt car was found abandoned and trashed in Mexico (i think).

and yes....for my last example, say i borrowed $1200 at 0% for 12 months. Monthly payment would be $100. i get that. as written online, i thought the fees were in addition.
 
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M

mildone_rivals

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Dec 19, 2011
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Shelby65 said:
screw...this new car for the wife. the Shelby is the best $6,000 i ever spent. kidding of course. i’m a GM guy...but did you read about how the Bullitt car was found abandoned and trashed in Mexico (i think).

and yes....for my last example, say i borrowed $1200 at 0% for 12 months. Monthly payment would be $100. i get that. as written online, i thought the fees were in addition.
Click to expand...
I am here to save you from all this financial complication.

1. Sell the wife.
2. Use the proceeds from the sale to purchase hookers and blow in cash.
3. Enjoy not needing another car with registration fees, insurance, etc.

No need to thank me for this excellent advice. It has been my pleasure to serve.
 
J

Jackson206:)

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Sep 29, 2006
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RUTGERS95 said:
more than you surmise apparently

look it's simple, research and if you still have questions then maybe bring this bs to a football board. everyone wants something spoon fed to them besides, this is pretty basic stuff
Click to expand...
Wasn’t directed at you
 
E

eliminate2006

Freshman
Sep 17, 2013
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You should play around with a loan calculator. If you're financing about $30,000 for 48 months the 0% financing is worth about $1500. A little less if you shop around for the least expensive regular car loan you can find.

Figure out the price of the car including fees and tax and negotiate and/or shop that number, then worry about financing.
 
S

Shelby65

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Apr 1, 2008
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yes i get that....the language about the specific costs threw me. perhaps if in parentheses i wouldnt have thought it was additional cost.
 
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