Paying out a Loan on a car

[Richtind]

How do I calculate a payout  price on a car loan? Richtind.

[r32-25t]

Ask the finance company for a pay out figure and they will tell you the exact number 

[Aussie_Delivered_R32_GTR]

6 hours ago, r32-25t said:

Ask the finance company for a pay out figure and they will tell you the exact number 

Correct....... Unless you have the correct software calculators it's near impossible to get close to an accurate figure.

The initial amount borrowed, the term, the interest rate, duration of the loan, whether there is a residual amount (if commercial lease) all play a part in the final payout figure.

Some institutions may have a payout calculator on their websites but realistically, as the previous poster said, just ring them.

Make sure you have all you loan information in front of you when you do for ID purposes.

Cheers,

Bob.

[Richtind]

Thanks guys, I worked out my own payout. This was my method . My Loan was over 84 months, I had paid 44 months which left 40 months. I then multiplied 40 x the monthly payment and came to an amount. Then calculated the monthly amount of interest and multiplied it by 40 giving an amount of interest which would be deducted from the total amount of monthly payments left as above. Without allowing for an early payout amount. My payout figure was $4,593.21 less than what the finance company gave me. So be very careful if you try to estimate it yourself. This is the reason why I wanted to know the formula. Cheers Richtind.

[l0ckym]

Um, that’s not how you work it out. Remember some loans have break fees - if you pay it out early. Banks never lose in these things

[niZmO_Man]

Also "servicing fees"

[r32-25t]

Also the amount of interest you pay changes as the loan amount reduces and all sorts of tricks the have in there 

[Leroy Peterson]

DIY calculating anything with a loan is 99% wrong, 100% of the time

[GTofuS-T]

9 minutes ago, Leroy Peterson said:

DIY calculating anything with a loan is 99% wrong, 100% of the time

not if you know what you're doing... or know how to use google...

[Leroy Peterson]

not if you know what you're doing... or know how to use google...

Then it's not DIY, it's using a tool. But even then, I'd bet money it's still not spot-on.

[GTofuS-T]

2 minutes ago, Leroy Peterson said:

5 minutes ago, GTofuS-T said:

not if you know what you're doing... or know how to use google...

Then it's not DIY, it's using a tool. But even then, I'd bet money it's still not spot-on.

I didn't realise DIY meant eyes closed take a swing at something without learning how to first... i guess all the work i do on my car can be deemed professional then 

the only scenario where you can never be accurate is in a variable rate situation, but car loans are usually a fixed rate. Anything else should be easy with all the info from the agreement in your hands.

[Leroy Peterson]

 

 

 

I didn't realise DIY meant eyes closed take a swing at something without learning how to first... i guess all the work i do on my car can be deemed professional then

 

Well that's what OP did and what I was referring to

 

[Shoota_77]

The ONLY accurate way to do it is get a current payout quote from the financier.  Every institution has different early termination fees that they add on based on how far into the loan you are.  Generally it's a percentage of what they're losing by you not completing the full term of the loan.

[GeeDog]

Back in the day, when I was taking car loans, the finance companies used the "Rule of 78" - google it. Basically it defined that the bulk of the interest was paid early in the loan - so if you paid off a 4 year loan in 2 years, you paid almost all of the interest you would have paid if it stayed over 4 years. It was a fairly expensive learning experience for a youngster on apprentice wages, who liked to change cars regularly.

I have no idea if it's still used, but I suspect it's probably not legal these days (probably wasn't legal in the 70's either, but laws weren't so important then).

[Aussie_Delivered_R32_GTR]

19 minutes ago, GeeDog said:

Back in the day, when I was taking car loans, the finance companies used the "Rule of 78" - google it. Basically it defined that the bulk of the interest was paid early in the loan - so if you paid off a 4 year loan in 2 years, you paid almost all of the interest you would have paid if it stayed over 4 years. It was a fairly expensive learning experience for a youngster on apprentice wages, who liked to change cars regularly.

I have no idea if it's still used, but I suspect it's probably not legal these days (probably wasn't legal in the 70's either, but laws weren't so important then).

You are 100% correct........ It has been outlawed for consumer loans but is still in effect for business or commercial leases etc.

[UWISSH!]

Who cares
Obvious scam/ bot post
Has made 2 posts both in this thread saying hey look what I managed to achieve
Who comes to a forum to ask how to pay out a loan. U ring your bank/ financier
If u calculate a lower amount they couldn’t give 2 shits.
Until you pay what they say you owe it will remain their property unless you can provide concrete evidence it’s too much

[niZmO_Man]

Damn the bots are getting smarter

[GTofuS-T]

damnit! I got scammed... how do I calculate how many monies the scam bot scammed me of?

[Cowboy1600]

Only way to do it is call the financier.  I work in asset finance.  I can guarantee it's the only way cause every lender is different.

[Ben C34]

2 hours ago, Nobility said:

loan is a bad idea

 

Yeah buy houses with cash like everyone else