yep, he's correct.

The finance charge is a subset of the total listed. You put down 5K + the total financed( taxes,interest, extended warranty and principle) which totaled to >31K


you could have bought a brand new car without much negotiations for 29K +taxes.......with 3/36K warranty with better financing. sorry , but you did get bent over.

 

I just did the calculations to make sure you didn't get screwed ..


Purchase price: 23768
Warranty: 1600
Sales tax 7%

25368*1.07= 27143.76

You put down 5K

So your total loan amount financed is 22143.76

If you loan amount is 22143.76 for 5 years at 7%, your
monthly payments are about $438 and the total interest for the loan is $4162
so in the end you will be paying for the car purchase, including taxes, warranty, interest and principle a total = 22143.76+4162+5000(down pay)=30467.76..................I'm off a bit, but you can now breath easier that you didn't get ripped on all the finance terms........just that you negotiated higher and the interest rate is high.

 

If you can, give the bank more money every month and you'll avoid paying as much interest.

 

You got ripped on the finance charges. Those should never be more than a few hundred $. At the MOST. Most dealers wave them. I got my MY00 with 45k CERTIFIED for $18500 out the door (Tax, tag, title, everything). Also, 7% seems a tad high....I though national average was at like 6.5%. i could be wrong.

John

 

You did ok if it was your first purchase and the numbers look correct. Here's the math based on your limited info:
Purchase price = 23768
+ Extended warranty = 1660
Sub-total = 25428
+ Sales tax + registration, docs, (assuming 8%) = 2034
Total purchase price = 27462
- Down payment = 5000
Amount finance = 22462
APR of 7% = 444/mo
Total monthly payments = 60 mos x 444 = 26640
Finance charges = Total monthly payment 26640 - Amount finance
22462= 4178
Total cost of purchase = total monthly payments 26640 + your initial down
payment 5000 = 31640.

 

Wow, it does seem like you paid a lot more than you had too...i took a long time to find my car but i finally did two weeks ago in a perfect 02 w/ 34K for $19500...i financed the full amount at 4.99% through my credit union for 60 months @ $388/mo...no other fees at all...

 

it always seems like alot when you add in all the interest you paid for 4,5,6 years. that's the bank's profit for leaoning you 22K+ for so many years. If I loaned my friend 22K for 5 years I would want about 800 a year in interest, or about 75 bucks a month

 

Grazhoppa is almost on target. It goes something like this:
$23768 (car) + $1699 (sales tax + dealer fees) + $1660 (ext warranty) = $27127 (total price before financing).

$27127 (total price) - $5000 (down payment) = $22127 (the amount you're loaning from the bank)

Here is where the math goes awry, because your stated numbers ($4161 finance charges and 7% APR) don't seem to be accurate. Either you have higher APR, maybe in 7.4 - 7.5 range, or your finance charges include some charges we're not aware about, or your loan is not for 5 years.

Assuming 7.5% APR for 5 years, total interest you pay on the loan (if you follow their suggested schedule) is 22127 * 7.5% * 5 / 2 = $4149. Almost a match to your $4161.

$22127 (loan amount) + $4161 (finance charges) = $26288 (total payments)

Now, of course, if you come up with enough money and send them a check for $22127 today, you will NOT be required to pay finance charges and your final price will be just $27127. If you pay it off in less than 5 years, you will pay less interest.

 

dang... those extended warrenties are BIG profits for the dealers.. i have a buddy that is a new car sales mgr. he said they make as much profit on those as they do a lot of models of cars they sell.

i just never buy them..

and the fees sound high..

you should have it all disclosed on your contract.. if it is signed and delivered.. it will probably not be negotiable.. if you find something illegal. talk to the dealer.. then your states attn'y general.

 

My company is in the extended warranty market as well as other things. Dealers are crooked as sh!t when it comes to extended warranties and Vehicle Service Contracts. They "pack" the deals by inflating the price of these warranties and contracts to make themselves a profit. Be careful when buying those.