I purchased a 2002 s2k about 5 months ago. They wanted 25k but i got them down to $23,768 although i see that i paid too much for it. I put 5k down and have a loan at 7%. but there was also a $4168.06 finacial charge plus tax which is 7% plus the extened warranty $1660. Thus making a used s2k over 31k.

So what happened here? What is the financial charge? Dosent the 7% interest pay for the loan or am i getting charged for something i shouldn't?

Thanks

 

Using simple interest calculator you should be able to find out whether everything adds up or not.

Knowing the loan amount, interest rate and term of the loan, you should be able to tell what the montly payment should be.

So question for you. What was your loan amount and as well as the term of your loan? assuming the interest rate of 7%?

 

I'm guessing the "finance charges" are what it would take (dollar wise) to finance the term of the loan. If you've ever taken out a mortgage, you'd know what I'm talking about. But basically, it's the total interest payment for the life of the loan.

 

*edit: double post.

 

$23,768 doesn't seem unreasonable for an 02, expecially if it had lower mileage. The extended warranty is something you bought b/c you felt like it was a good deal. Uncle Sam is always gonna get his cut. Financing is always gonna eat you up unless you save up money to pay cash. Doesn't sound like a horrible deal to me.

 

What i want to know is what is the financial charge?
I have multiple papers and the numbers vary from one to the other the numbers are close but not exact like the total is off by $799. And should the finacial charge($4161.06) and the total of payments($26,288.40) equal the total sales price($31,288.40)?

Thanks

 

Find out on the bank contract the amt you financed.. divide that amount by the term of the loan. Than subtract that number from your monthly payment.. what is left is your simple interest. Multiply that by your loan term and it should equal your finance charge on the bank contract.

 

I didn't do the math but that looks wrong...

 

sales tax?
title?
registration?
dealer fees?

 

no you put 5K down

5k down + $26,288.40 = $31,288.40

ouch......

but financial charge must be included in the payments...