Price Quotes Question....

[jampack]

Hi,

I don’t really post much in this forums but have been reading threads, etc, since 06 of Dec. I got my first car from here and have sold it here too. Just a forewarning, my post will have calculations on it.

I want to ask everyone’s opinion about my story. This happened a week ago after I decided to replace the car I currently have for a car I really wanted to have.

A week ago, I decided to replace my 2007 Nissan Altima with a Honda Civic Si. So here I was, I emailed Calgary Honda about my situation. I currently am leasing my Altima for a 3-year deal. The car is with me for a year now with approximately 25,000 kms. Car is very clean, looks brand new actually and has been very very well maintained. I was assigned to a salesperson in Honda and have given me information on how, of course, I may lose money if I trade in my lease, etc. He then asked me, if I want, to come in and have them give a price to my car. I went to Calgary Honda 2 days after and have my car appraised by their manager.

My Nissan Altima has gotten an appraised price of $17,000. My buyout of the car has been approximated around $25,000 so it ended around $8,000 difference either I give them the money or they can put that 8k towards getting the Civic Si. I decided to put it towards the new Si giving the total of $39,338.96 (tax included and all other expenses). So we looked at everything and got some options and so on. They then gave me the price quotes..

Here is where my concern is. I apologize if this post I have is about calculations but this is really the where the story is.. There were 2 price quotes they gave me (I listed all info, hehe). Let’s talk about the first one first:

6 years (72 months) @ 3.9% interest: Total of the car: $39,338.96 including tax already. They have asked me to put $4000 down payment so it will just end up @ $35,338.96 (tax included). They gave me this price for monthly payment: $551.28 per month. If I calculate it:

$551 x 72 = 39,672 – this is with my down payment already + the interest. So where did my $4000 go? Even if we put the interest again on the $35,338.96, it only equals to $36,6717.18..
2nd option:

7 years (84 months) @ 7.75% interest: Total of the car: $39,338.96 tax included. No down payment. They gave me a price quote of $608.97 per month. If I calculate it:
$608.97 x 84 = $51,153.48 that’s with the interest already..Any calculations I do, it won’t match to the interest + the car’s price of $39,338.96. I have asked about this from the salesperson a few days ago and he hasn’t replied to me..

I just want to know if there’s something I overlooked at here and missed reason I am getting this calculations. I know for a fact this deal will cost me money but not this much…What’s with these quotes here? Please Advise.

[SOAB]

how are you calculating your interest? it's a little more complicated than just multiplying your interest rate by your principal.

[benyl]

Originally posted by jampack

6 years (72 months) @ 3.9% interest: Total of the car: $39,338.96 including tax already. They have asked me to put $4000 down payment so it will just end up @ $35,338.96 (tax included). They gave me this price for monthly payment: $551.28 per month. If I calculate it:

$551 x 72 = 39,672 – this is with my down payment already + the interest. So where did my $4000 go? Even if we put the interest again on the $35,338.96, it only equals to $36,6717.18..
2nd option:



Do you know how interest works? I am guessing you don't as you are willing to take a HUGE hit of $8K on your car and then pay interest on that amount. And I can't believe you are financing for 6 years.

3.9% is the interest rate per YEAR.

Did you know that extra $8K you are putting on the car is going to cost you $1,000 in interest of the 6 year term? Effectively, trading in your car now will cost you $9K and in return you get nothing. Sounds like a good deal to me.

$124.50 of your payment is going to pay off that $9K... :banghead: :banghead: :banghead:

[jampack]

Even if we divide the principal balance by the number of months multiplied to the interest rate then add them up, it will end up the same as multiplying the principal balance to the interest. I just don't know where the other charges are coming from.

[jampack]

Originally posted by benyl


Do you know how interest works? I am guessing you don't as you are willing to take a HUGE hit of $8K on your car and then pay interest on that amount. And I can't believe you are financing for 6 years.

3.9% is the interest rate per YEAR.

Did you know that extra $8 you are putting on the car is going to cost you $1,000 in interest of the 6 year term? Effectively, trading in your car now will cost you $9K and in return you get nothing. Sounds like a good deal to me.

$124.50 of your payment is going to pay off that $9K... :banghead: :banghead: :banghead:

I did not go with the deal of course realizing how much money it was. I guess I should have known what you just said way before too.

Thanks..This is what I am missing.

[Strider]

You're paying 8 grand to downgrade from an Altima to a Civic?? :nut:

[benyl]

Loan Payment Calculation
Amount Borrowed 35,338.96
Annual Interest Rate 3.900
Number of Payments per Year 12
Amortization Period in Years 6
Payment Amount
First Year to Display 1
Last Year to Display 6
Payment Amount is ................... 551.28
Principal 35,338.96
Interest Paid 4,352.90
Total Repaid 39,691.86

Payment Schedule

Payment
Number Payment Principal Interest Balance
1 551.28 436.42 114.85 34,902.54
2 551.28 437.84 113.43 34,464.69
3 551.28 439.27 112.01 34,025.43
4 551.28 440.69 110.58 33,584.73
5 551.28 442.13 109.15 33,142.61
6 551.28 443.56 107.71 32,699.05
7 551.28 445.00 106.27 32,254.04
8 551.28 446.45 104.83 31,807.59
9 551.28 447.90 103.37 31,359.69
10 551.28 449.36 101.92 30,910.33
11 551.28 450.82 100.46 30,459.52
12 551.28 452.28 98.99 30,007.24
Totals 6,615.31 5,331.72 1,283.58 - YEAR 1

Payment
Number Payment Principal Interest Balance
13 551.28 453.75 97.52 29,553.48
14 551.28 455.23 96.05 29,098.26
15 551.28 456.71 94.57 28,641.55
16 551.28 458.19 93.09 28,183.36
17 551.28 459.68 91.60 27,723.68
18 551.28 461.17 90.10 27,262.51
19 551.28 462.67 88.60 26,799.83
20 551.28 464.18 87.10 26,335.66
21 551.28 465.68 85.59 25,869.97
22 551.28 467.20 84.08 25,402.77
23 551.28 468.72 82.56 24,934.06
24 551.28 470.24 81.04 24,463.82
Totals 13,230.62 10,875.14 2,355.48 - YEAR 2

Payment
Number Payment Principal Interest Balance
25 551.28 471.77 79.51 23,992.05
26 551.28 473.30 77.97 23,518.75
27 551.28 474.84 76.44 23,043.91
28 551.28 476.38 74.89 22,567.52
29 551.28 477.93 73.34 22,089.59
30 551.28 479.48 71.79 21,610.11
31 551.28 481.04 70.23 21,129.06
32 551.28 482.61 68.67 20,646.46
33 551.28 484.17 67.10 20,162.28
34 551.28 485.75 65.53 19,676.53
35 551.28 487.33 63.95 19,189.21
36 551.28 488.91 62.36 18,700.30
Totals 19,845.93 16,638.66 3,207.27 - YEAR 3

Payment
Number Payment Principal Interest Balance
37 551.28 490.50 60.78 18,209.80
38 551.28 492.09 59.18 17,717.70
39 551.28 493.69 57.58 17,224.01
40 551.28 495.30 55.98 16,728.71
41 551.28 496.91 54.37 16,231.80
42 551.28 498.52 52.75 15,733.28
43 551.28 500.14 51.13 15,233.14
44 551.28 501.77 49.51 14,731.37
45 551.28 503.40 47.88 14,227.97
46 551.28 505.03 46.24 13,722.94
47 551.28 506.68 44.60 13,216.26
48 551.28 508.32 42.95 12,707.94
Totals 26,461.24 22,631.02 3,830.22 - YEAR 4

Payment
Number Payment Principal Interest Balance
49 551.28 509.97 41.30 12,197.96
50 551.28 511.63 39.64 11,686.33
51 551.28 513.30 37.98 11,173.04
52 551.28 514.96 36.31 10,658.07
53 551.28 516.64 34.64 10,141.44
54 551.28 518.32 32.96 9,623.12
55 551.28 520.00 31.28 9,103.12
56 551.28 521.69 29.59 8,581.43
57 551.28 523.39 27.89 8,058.04
58 551.28 525.09 26.19 7,532.95
59 551.28 526.79 24.48 7,006.16
60 551.28 528.51 22.77 6,477.66
Totals 33,076.55 28,861.30 4,215.24 - YEAR 5

Payment
Number Payment Principal Interest Balance
61 551.28 530.22 21.05 5,947.43
62 551.28 531.95 19.33 5,415.48
63 551.28 533.68 17.60 4,881.81
64 551.28 535.41 15.87 4,346.40
65 551.28 537.15 14.13 3,809.25
66 551.28 538.90 12.38 3,270.35
67 551.28 540.65 10.63 2,729.71
68 551.28 542.40 8.87 2,187.30
69 551.28 544.17 7.11 1,643.14
70 551.28 545.94 5.34 1,097.20
71 551.28 547.71 3.57 549.49
Totals 39,140.58 34,789.47 4,351.11 - YEAR 6
72 551.28 549.49 1.79 0.00
Totals 39,691.86 35,338.96 4,352.90 - YEAR 6

[benyl]

You know what the brutal part of the equation is?

You don't even get a GST credit for your trade-in.

You have to pay GST on that $8K...

hahahahahaha

This can't be real. This is comedy.

[jampack]

Yea, I guess I was downgrading. I realized already that it wasn't the best move. I just asked them first of course for a quote. I wanted to really know what I missed. I missed the financing that it is per year..Thanks to pointing this out.

[Masked Bandit]

Let's cut the guy a little slack here eh........he didn't go through with the deal.


You would be surprised (maybe not????) with what some people will do for a car. Some of the deals I see come across my desk are just plain crazy. The "second tier" or high risk financing outfits like Wells Fargo or VFC have to be just shy of criminal.

One of the deals I saw was for a three year old Sunfire (leaseback probably) with high km's. A cash sale should have bought this car for around $5000. Once this guy was done with the interest, he was going to be paying about $20,000.

I wouldn't think that people would sign up for something like but it happens every day. I don't know if they just don't look at the big picture or what.

[ExtraSlow]

There are lots of people out there who are shockingly bad at math. It's frightening.

[spikerS]

Originally posted by Masked Bandit
Let's cut the guy a little slack here eh........he didn't go through with the deal.


You would be surprised (maybe not????) with what some people will do for a car. Some of the deals I see come across my desk are just plain crazy. The "second tier" or high risk financing outfits like Wells Fargo or VFC have to be just shy of criminal.

One of the deals I saw was for a three year old Sunfire (leaseback probably) with high km's. A cash sale should have bought this car for around $5000. Once this guy was done with the interest, he was going to be paying about $20,000.

I wouldn't think that people would sign up for something like but it happens every day. I don't know if they just don't look at the big picture or what.

I had to do that with my last car, because i had no credit, and was being charged 29.9%. kept the car for a year, and tossed extra money aside to buy it out. after that year, traded it in, and bought out the differance between loan amount and trade in value. But you have to do what you have to do.

[syeve]

Originally posted by Masked Bandit
Let's cut the guy a little slack here eh........he didn't go through with the deal.


You would be surprised (maybe not????) with what some people will do for a car.

I agree, I have seen WAY stupider shit. One of my buddies leased a civic, and traded it in on an Mazda. Went backwards $10k on a lease and now want to trade it again for a chrysler sedan. He OWES $27k on 2003 Mazda. Its worth about $15k.

[jampack]

All I wanted to know is how did they got the quoted price per month. That's all guys. At the first place when they gave me the appraised price for my car with $8k difference and gave me these quotes, I already denied the deal but just explored on it more. Thanks.

[Redlyne_mr2]

Do not finance negative equity under any circumstances...unless you're getting 0%.