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Car Payments

Glowpun

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Hi all,

I ended up making a car purchase loan for 5 years at $265.mo. If I wanted to reduce the loan life to 4 years, how many extra payments per year will I have to make?
What would be considered a decent APR for car loans these days?
 

justabubba

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Hi all,

I ended up making a car purchase loan for 5 years at $265.mo. If I wanted to reduce the loan life to 4 years, how many extra payments per year will I have to make?
What would be considered a decent APR for car loans these days?

need any three of these four:
amount financed
interest rate
payment amount
number of payments

the two items in bold font are known
since you want to solve for revised payment amount
the other two aspects of the financed deal need to be made known


note: interest rate will be impacted by your credit score; assume it will be what you now have for your five-year note
 

PIPEWRENCH

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Hi all,

I ended up making a car purchase loan for 5 years at $265.mo. If I wanted to reduce the loan life to 4 years, how many extra payments per year will I have to make?
What would be considered a decent APR for car loans these days?

3

There are 12 payments in the fifth year. Divide that into 4 years and you need to make 3 extra payments each year.

Car loans are all over the place. I have see advertising for no interest. They are clearly making it up somewhere else. You really need to look at the over all deal. There are almost as many gimmicks in car loans as there are different stump speeches from politicians.
 
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RetiredUSN

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Hi all,

I ended up making a car purchase loan for 5 years at $265.mo. If I wanted to reduce the loan life to 4 years, how many extra payments per year will I have to make?
What would be considered a decent APR for car loans these days?

Depending on your credit rating and location, you can get pretty low on finance costs. What vehicle did you buy?
 

SocialD

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Hi all,

I ended up making a car purchase loan for 5 years at $265.mo. If I wanted to reduce the loan life to 4 years, how many extra payments per year will I have to make?
What would be considered a decent APR for car loans these days?

Would have been much easier and more accurate if you had said I purchased a car for x dollars on a 5 year loan. my payment is 265.00/mo and my interest rate is y%.

Since I don't know how much the loan was for or your current interest rate I have to guess which makes it a bit less accurate.
However, you can take a year, maybe more, off the loan by paying 65$ more per month. so pay 330$ and you will cut 12 to 14 months off the loan depending on your current interest rate.
 

joG

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Hi all,

I ended up making a car purchase loan for 5 years at $265.mo. If I wanted to reduce the loan life to 4 years, how many extra payments per year will I have to make?
What would be considered a decent APR for car loans these days?

12×265/(4×12)=66,5 . That is not a Presen Value calculation, but rates are low and shouldn't change it much. There might be administrative costs attached to the switch.
 

lpast

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3

There are 12 payments in the fifth year. Divide that into 4 years and you need to make 3 extra payments each year.

Car loans are all over the place. I have see advertising for no interest. They are clearly making it up somewhere else. You really need to look at the over all deal. There are almost as many gimmicks in car loans as there are different stump speeches from politicians.

What he said and Ill add this, best car rates most of time are credit unions. For example when i bought my nissan rogue they were offering 1500 rebate ,I took the rebate and got 0.7 interest rate from my cred it union
 
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