Finance Questions

Archive for the ‘Finance Calculations’ Category

Question: Car Buying Question? Tax & Title Fees…

I’m looking into buying a car, my first car purchase, it’s a 2006 VW Jetta, and I plan to get my financing through Capitol One or my bank, so how does that all work? I mean I know how much I can afford using the auto loan calculator but how do I know if I can afford the loan for the cost of the car and the tax and title?

The car is listed at $13,995 and I’m not sure if I can get them to go down any because it’s already well below KBB value. I have $3,000 down and with my desired payments I can get a loan for roughly $11,300. How do I figure out if I can afford this car??

I live in Texas.

Answer: Just put your numbers into a loan calculator and see what monthly payment results. You’ll have to know or estimate the interest rate on the loan, and the number of months. Tax will be charged at the same rate as you pay for other goods, and title/registration fees will only be several dollars to maybe a couple hundred dollars, depending on the state you live in. Here’s a calculator that would do the job for you:

http://www.autoloancalculatoronline.com

Good luck.

Car Loan Calculator: Get Your Car Finance Estimates In No Time

Question: No Credit auto financing?

Ok, I’m 19 years old, live with my family, have an active checking and savings account. I work as a General Manager at LP Cleaning Service and make $3,500.00 per month before taxes.

Heres the trouble though, I have no credit history and no co-signer. I’m wanting to get approaved for the 2008 Mitsubishi Lancer (total loan needed $18,000).

I found this place online (www.fundingway.com) that says as long as I make $1,500 a month, im at least 18 and have not filled bankrupsy that I qualify for an auto loan. When I filled out there “Loan Calculator”, it told me I qualified for $20,000 in financing.

Should I even bother filling out the application? do you think I would be approaved?

I only have maybe $500 at most for a down-payment, which may pose a problem.

Thanks!

Answer: Not knowing about this site in particular. They will probably want at least a 10% down payment, which would be 1,800 on your 18,000 car. You are making probably 2,500 a month after taxes with what appears to be no expenses. So If you only have $500(at most?) that is under 3% and even people with OK credit would have a problem having a down payment this low.

Assuming you get an interest rate of 15%(as a first time buyer it might be different) you would be paying about $420 a month for 5 years. This does not include insurance(which on that car for your age will be high). If you can’t get a cosigner you might want to think about getting a good used car. The big problem with “new” cars is as soon as you drive them off of the lot they loose a large percentage of their value. You might be in a better situation to get a 2005 or 2006 model for several thousand dollars less. Since it would be less, the down payment required would also be less and might get closer to your price range.

But if you do apply for any loans make sure they are not asking for any “Fees” up front to guarantee the loan. Any site that does is a fraud and if you send them the money you will never see any loan from them.

how to use auto loan calculator – morecalculators.com

Calculating Economic Order Quantity or EOQ is easy with the Economic Order Quantity formula. Below is an Economic Order Quantity calculation you can use as an example in learning how to calculate the Economic Order Quantity.

Example of Economic Order Quantity calculation

Whenever you have to calculate the Economic Order Quantity, remember the Economic Order Quantity formula:

Where:

• C = cost of carrying a unit of stock for one year
• O = cost of placing an order for stock
• D = annual demand in units

Suppose you are calculating the Economic Order Quantity of computers for a ma and pa store. If each year, 10,000 units are demanded and the cost of replacing an order is $5000 whereas the cost of carrying is $50 per unit, then:

The cost of carrying for 10,000 units is $500,000 and the Economic Order Quantity is:

Question: I Need some Math help?

Wade Ellis buys a new car for $16,113.82. He puts 10% down and obtains a simple interest amortized loan for the balance at 11 and 1/2 % interest for four years. If loan fees included in the Finance Charge total $814.14, find the APR. (Use your graphing calculator. Round the answer to one decimal place.)

Answer: The principal on the car left to be paid off will be 90% of the new car price:
(0.9)(16,113.82) = 14502.44

The total amount Wade will have to repay on the loan will be this principal + the interest on it over a 4-year period + the Finance Charge:
14502.44 + (0.115)(4)(14502.44) + 814.14 = 21987.70

The APR:
21987.70 = 14502.44(1 + i)^4
(21987.70/14502.44)^(1/4) = 1 + i
i = .01096 or 11.0%

Finance Application for Monthly Payments on the Graphing Calculator

Question: I need car help!!! I’m so confused with online site!!?

Ok. I’m doing a budget project for school and I have to have the monthly payments on a car. I chose a Honda Element and I’m on the site looking at it. Now I’m to the point where it talks about finance stuff. Can someone please answer these questions?? : (please answer at least one! but you’ll get 10 Pts if you answer all!! )

1. What is a “Term”?? It has a drop-down box with #s 24-60 in it. Is that how many months it’ll take to pay the car off?

2. What is “Annual Percentage Rate”????

3. What is a “Trade-In”? Is that talking about trading in one car for another?

4. What is “Additional Down Payment”?

I need major help. I don’t understand any of this stuff. If you want to see the page I’m looking at, here it is : http://automobiles.honda.com/tools/finance-calculator.aspx?YH1839EW
PLEASE HELP!! Thanks in advance!!

Answer: additional Payment: is when u put down an extra amount, on top of what u already payed

Trade-in : is when u have a vehicle and your want a newer one they, give you the value of your old car and take of that from the new car…

Annual Percentage Rate: is the percentage your interest is based on

Term: is how many months you have payments on like 24 months 48 months

Auto Insurance Advice : How Do Auto Insurance Premiums Work?