principle of loan = amount borrowed = camaro cost
amortizing loan = when you use an amortization schedule to pay down the loan
amortization schedule dictates how much each payment is going to go towards the paying the principle and paying the interest (I think in terms of a car loan, this means the amount you pay monthly is subject to change).
To find out how much you will be paying monthly you will be using an amortization calculator. It's much simpler than it sounds, but it's not gonna sound pretty coming off an internet forum when my brain is fried from key west for the past week.
Quote:
Originally Posted by bumblebee123
I was stupid not to ask questions. I was nervous due to its my first car and I was alone. All I know is the monthly rate is 675$ per mo and that's without down payment. I can make it to 619$ if I put 5000 down. I was surprised it was lower than I expected. I'm guessing because of that amortization.
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Ask any questions you have, you need to understand this process. Try not to be nervous and remember if you have a question, just ask it. If you still don't get it, just be upfront and let her know that you need to understand it differently. They are there to facilitate this process, not wig you out. Good luck with this and keep us posted.
I suggest looking at the wall street journal or barron's online to see if they have more information with this in relation to auto loans.
I am a finance and economics double major (and dad used to work for GMAC in lending) but I'm not quite sure if this is accurate for a car loan. Just curious, are you taking out a lien?