Car Loan Interest Explained (The Easy Way)

How car loan interest (APR) works!
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I’ll go over everything you need to know on car loans and interest. I’ll cover how they work and how much interest you’ll be paying for the car loan. Watch and learn. Don’t end up upside down in your car. Follow my advice and you’ll be better off than most of us when it comes to your interest rate and length of the loan.

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#honestfinance #carloans

[MusicManZay]

I am one of the few teachers who teaches credit, loans and budgeting to high school seniors and juniors. Very important information.

[kofori]

I wonder why schools and colleges dont teach about Student loans, car loans, mortgages etc. The archaic curriculums need to be revised asap.

[somethingelse]

I used to make a lot of money as a Car Salesman, but I had to get out of it, and these days I kind of regret it.
I used to see people smiling and driving off happy with their new vehicle after just signing a 75 month payment plan with an 18% interest rate. Absolutely killed me inside. Worst part is... I never lied. They just willingly took the deal. I wonder how many people's lives I wrecked by talking them into a loan I knew they couldn't afford. Yet.. I dunno. It's never forced on you folks. Just do the math. And don't make hasty decisions.

[Linkzzey]

This video just saved me from making a huge mistake, thank you

[kkdqxwg]

Another one they like to use is the “well put you in a new car now and you won’t make any payments until the new year!!! Sometimes this can be around 8 months before payments kick in. This is the most costly way to buy a car. Interest still accrues during those “grace” no pay months and now you owe full price for a used car that is almost a year old in some cases. It’s best to pay as big of a down payment you can and do a 2 or 3 year car loan to save the most on interest.

[HonestFinance]

Hopefully you learned something new. Please give the video a like and subscribe if you'd like more financial advice.

[TEE_SUNSHINE]

I wish I had watched this before getting a 2015 vehicle last year. It’s 75 months. I had no idea about being upside down but I’m glad I know now. They won’t get me in the future. Thank you ☺️

[warsame]

I went through so many videos and none of them made sense but this one spoke to me, like and subscribed!

[awesomecatvideos]

I bought a 2016 Ford Focus for $11k and a 13% APR. I wish I had found your videos sooner. Never again am I getting ripped off!

[itsyaboimat]

We learned about this during high school in my special education class but this helped my so much for getting ready to loan my 14 4Runner

[clintgolub]

Our loan from Chrysler Capital seems to be structured differently where principal is based on the length of time that elapses from LAST PAYMENT. The less time between your next payment, the less interest you pay. They literally charge more interest for every day that you don’t pay.

[thefearlesskibaarka]

Watched mostly all of your videos really I learned more
Thanks

[thomashaas]

I can afford it = I wrote a check and paid for the whole thing right upfront. I love my car with no payments.

[popskull]

Your video was very informative thanks for sharing your knowledge with us. Tons of people have no idea how loans, financing and interest rates work, me being one of them! But now I have a better understanding of it and it only took 4:31 thanks again. I’ll have to make sure I check out the rest of your videos.

[jK-zvnk]

Appreciate the knowledge! Very helpful as I’m about to buy my first car soon

[NikkiVelazquez]

Very helpful! I shared the video with a friend who doesn't understand interest rates at all.

[the-ironclad]

The thing is, if you’re paying for a car loan while the car depreciates and worth less than your loan, you lose leverage and equity. Unless you can pay more while having shorter loans, you’ll have more equity. Either way, loans and debt is really hard to manage especially with other kinds of bills and payments in a person’s life.

[valyatimtsenko]

Very helpful thank you. Keep up the great work.

[melodyfraley]

THANK you! I've had 3 people try and fail to explain to me what you just helped me understand in less than 5 minutes! Good stuff dude :)

[BluezFan]

I’m in LA county. Just went to buy a car today. They offered me a 8.99% loan. I have good credit so I knew that was absurd. They would not let me secure my own loan and buy the car. Had to be at a higher interest rate. He told me I could make the first payment and then just refinance through my bank at a lower rate. Apparently the price they were offering was rock bottom and I guess they could only make money through the loan. I just decided to go private party. These salesman can kick rocks.