Submitted by Binokna t3_y7bxlv in personalfinance
Either i understand this or I’m just really stupid.
For context the vehicle came out to a total of $23,553. The APR as a first time buyer was 14.59% Now i obviously know nothing about personal finance let alone loans and APR but i do know that is ridiculously high, so im not going with this car but i would like to know how this works.
With my $10,000 down after taxes and fee’s the financed amount came out to $16,001.39.
@ 48 months the monthly payment is $442.01.
I apologize if this is very stupid but 442.01 x 48 = $21,216.48. + 10,000 down brings it to $31,216.48.
So I’m essentially paying this lender $5216.47 to borrow $16,000.01?! Im super confused and probably stupid but if anyone could explain this, i would be very appreciative!
Thanks