Car loan payment with PRINCIPAL + INTEREST example

In this video, I'm going to guide you through the ins and outs of car loan interest calculation. No more confusion or uncertainty! We'll focus on a practical example of a $20,000 car loan with a 3% interest rate over five years.

Join me as I break down the process step by step, ensuring you understand how your monthly payment is divided between principal and interest. Discover the impact of a decreasing loan balance and how it affects your payment allocation.

By the end of this video, you'll have the knowledge and confidence to calculate your car loan payments accurately. Subscribe now and empower yourself with the skills to take control of your car loan. Get ready to become a savvy borrower!

[danielm]

I bought my Mazda in 2010 at 0% interest, and I paid it off in 2013, and I’m still driving it. I’m at 115k miles now at almost 14 years. It’s still running and looking great! If you buy new, 0% interest is the way to go if you can get it!

[KubanKevin]

Simple interest is best. Every month you pay interest only on your remaining principal balance. So each passing month, less goes toward interest, more goes toward principal. Performing a an extra principal payment further reduces the amount of interest you are paying.

[FactsofMotivation]

Who gets 3% on a used vehicle? BECU current rate starts at 6.99%.

[charlessnortley]

Wow I got screwed first time buyer fresh credit of only 5months at 698 fico. I'm paying 12.51% interest at a 377.10c car payment. I forgot how many months I believe 72months.

[edgarc.]

So if someone was to ask what is the TOTAL amount that was paid to interest in the life of the loan, how do I find that out?

[munchingmakenna]

I still don’t get it? How am I paying 7000 on a 3 percent car loan of 23000?

[orangorang]

can i ask, what makes the payment got decreased?

[rosaapinaa]

What is the interest rate of this year if they have a 600 credit and try taking out a used car from a dealership with a 2 year payment plan and the car is 14, 000 ? ??

[zenster]

I though you have to pay interest before you pay the original amount as a priority.

[joshua-zjks]

Genuine question, debating getting a £20, 000 loan for a car over 5 years, the interest is £23, 250 over that time, if I can pay the loan off in less than 2 years will the interest go down to close to £20, 000

[inventitious]

I had an auto loan from credit acceptance, Made perfect on time payments for 5 years from May 2013 – Oct 2017, How can I leverage that?

[cbjeoju]

For godly sorrow worketh repentance to salvation not to be repented of: but the sorrow of the world worketh death. (2 Corinthians 7:10)
Let the wicked forsake his way, and the unrighteous man his thoughts: and let him return unto the LORD, and he will have mercy upon him; and to our God, for he will abundantly pardon. (Isaiah 55:7)
For the wages of sin is death; but the gift of God is eternal life through Jesus Christ our Lord. (Romans 6:23)

[MKwaSheRe]

My loan in the beginning was for 316k originally and after paying $16k and the loaner locking my rate at 5.99% with 9k they now say that I still will be owing $316k and they asked for another $5k because they say the closing cost are $10 k so we added those 5k to the loan and now they say the loan amount I will be owing at the end will be $321k because of a n FHA interest. Does this makes sense to you? You are a professional and know more for sure. This is for a new construction house and I am about to sign final closing documents and will appreciate a response as soon as possible. Thank you!

[candicem]

Okay well ill pay a deposit and cover the interest to start with

[Diverse]

Translation: a 3% annual percentage is 0.25% per month. Interest on your first payment on a $20, 000 loan is 0.25% or $50.

In this example, $50 would be interest, and 309 would be knocked off of the principal, putting the new principal balance at 19, 691. Repeat

19, 691×0.25% = $49.22 of your next payment will be interest.

[mariaarroyo]

and life insurance that's no interest rate

[drajah]

You should never explain anything. Ever.

[alexrodriguez]

So with those numbers what’s the actual interest in real numbers that you would be paying?

[selene]

Your video is cut ahead start it again

[LynnM]

I’m so burnt I pay 29.99 interstate rate on my car loan