Orrrrrrrrr…. You could find out what the total of the car is. Then what your interest rate would be. So if it's 3.0 percent. × that by the total of the car…… then divide that by how many months your loan/lease is….. Much more sumple.

So "total × interest " then add them Then divide that number by the total….

Step 6: How did you get .82 as an answer? I thought you were dividing 1.223/1 with an answer of 1.223. Now how am I suppose to follow from here if my answer is different than yours?

Why can't the interest be purley a factor of the amount financed… for example: your interest rate is 4% your loan amount is $20k. that would be $800 in interest that would you would have to pay over the term of your loan… why doesn't this work?

Easier way, before buying a car, get a pre-approved loan. From that you can make a list of payment amounts per $1000 of loan, the bank or credit union will give you that. For example, a 2% loan at 60 months has a monthly payment of $17.53 per $1000. if the amount financed is $25,500 the payment is 17.53 * 25.5 = $447

Why would this video make somthing so simple seem so complicated , Im glad i had watched a few videos and allready understood what the hell they are trying to teach me

Or just use an online calculator. GOOGLE auto loan calculator. Very simple and very useful. You just input the amount financed, interest rate, and terms.

So i watched this video and changed each of the numbers to a variable so i could create a step by step formula. Pulled this out during the negotiations and the sales people were like "uhhh ohhhh" ….. got the general manager. Lol

My math gave me $307.58 with those terms and figures. Not sure I trust this method if the can't even do the math right. Looking to develop my own calculator in Excel for this for loan payments, this was no help since I can't trust it.

So they financed a $10,000 and with tax and interest it went up to 11,200?

I went in to finance a 8,000 car and at the dealers finance I was told it would 60 payments of 360ish which is around 22,000 so I got up slapped the finance leech and walk away

Step 1: Use an online car payment calc with a "Gap" feature of $299 or add a "1" under Sales Tax Rate within the calculator and the monthly payment should come out the same.

It's worth mentioning that the method presented in this video is actually incorrect for most car loans in the US. Car loans in the US are compounded continuously, not monthly like this video assumes.

## 77 comments

## xcrackspiderx

please…how use a calculator?

1+1=3? how make math

## fusion

1+1=11?

## Totally Not Rose

4th

## toffis12345

use less

## Etoya. A

well thx it helped me do my homework on how to caculate intrest on a car

## hubergeek

…and so, with this simple calculation Robert Oppenheimer was able to discover nuclear fission.

[audience applause]

## RedGemDragon2

Got lost at Step: Pen & Paper.

## AudioInjectedSoul11

or you know, you could just use a payment calculator like the ones on every single dealership website

## Aubrey Torres

what about step 5 I dont understand??

## Cam Mims

Just google (How much car can I afford) Done!

## Trenton Deal

Orrrrrrrrr….

You could find out what the total of the car is.

Then what your interest rate would be.

So if it's 3.0 percent. × that by the total of the car…… then divide that by how many months your loan/lease is…..

Much more sumple.

So "total × interest " then add them

Then divide that number by the total….

## EZAUTOCREDITUSA

Good information. Many people do not understand how to do this. If they would take the time to learn it could save them many dollars!

## King Pro

lost me at step 6

## peter gutierrez

step 4 times step 8 divided by step 13

## Monique Marcano

Step 6: How did you get .82 as an answer? I thought you were dividing 1.223/1 with an answer of 1.223. Now how am I suppose to follow from here if my answer is different than yours?

## Henry Pacheco

step 1: auto finance calculator online. step 2: oh wait that's it

## Joran Faren

Step 1: loan interest rate / 100 = a

Step 2: a / 12 = b

Step 3: b x principle amount = c

Step 4: b + 1= d

Step 5: d^(term loan) = e

Step 6: 1 / e = f *round to the nearest

Hundreds

Step 7: 1 – f = g

Step 8: c / g = your monthly payment!

## Natalie Alston

I still could not get it. I need to calculate $20k principle, 60 months, rate 2.74

## Corey Back

step 9 completely disregard steps 1 through 8, save up and pay for the car in cash.

## Chris Dawson

Manual workings

## thousand_cycle

Step 1. Have cash money

## John Joe

what the hell….

## Ivan Franco

some one explain step 5.

.0056 x 36 = .2016

1.0056 x 36 = 36.2016

how the hell did he get? 1.223?

he said Sum of step 4. x 36 = 1.223

what is the "Sum of step four!!!???"

## Livan Hernandez

THIS SUCKS!

## Livan Hernandez

APRIL FOOLS

## Kam Nadem

Why can't the interest be purley a factor of the amount financed… for example: your interest rate is 4% your loan amount is $20k. that would be $800 in interest that would you would have to pay over the term of your loan… why doesn't this work?

## Rob

W – T – F!

## calstate

Other online calculators give me 307.58 not 311.11, why is it off by almost 4 dollars

## Uncle Eddie the Tool Guy

This is someone explaining it to another math mathematician lol

## Renato Davila

I was lost after 10 senconds…

## FGilan

Easier way, before buying a car, get a pre-approved loan. From that you can make a list of payment amounts per $1000 of loan, the bank or credit union will give you that. For example, a 2% loan at 60 months has a monthly payment of $17.53 per $1000. if the amount financed is $25,500 the payment is 17.53 * 25.5 = $447

## Daniel Pena

Step 1. Save up and pay cash for them.

## Sean

I think I am going to get a bicycle instead…

## Sam Estrada

would you like that super sized sir?

## Sam Estrada

A little girl will go hungry today why is this important again?

## Arif Raza

You can also rearrange the formula for calculating PV of ordinary annuity to solve for monthly payment given PV.

## Danny Rodriguez

Great post! thank you.

## Norm Mallett

how about, tire iron, though window drive away ?

## mark .m

Why would this video make somthing so simple seem so complicated ,

Im glad i had watched a few videos and allready understood what the hell they are trying to teach me

## JTundra

Just google car payment calculator morons

## Illuminati Vaccine

so in this scenario, the 6.74% is 6.74% of what exactly??

## rated. R

Wtf lol

## Nitesh Tak

ok..I got the scientific calculator..now what

## James Bond

Step nine, call at bankruptcy attorney.

## Sunday Notice

https://www.youtube.com/watch?v=mCbKt-vbLwI&t=28s

## 41wardell

I think I'll be walking……

## William Vann

Or just use an online calculator. GOOGLE auto loan calculator. Very simple and very useful. You just input the amount financed, interest rate, and terms.

## Captain Rawn

You should explain what each step gives you

## Steven Swanson

So i watched this video and changed each of the numbers to a variable so i could create a step by step formula. Pulled this out during the negotiations and the sales people were like "uhhh ohhhh" ….. got the general manager. Lol

## mankind8464

I lost when he said get pen and paper

## Milton Williams

What in the world, you got something more simple that's to much. Got my brain hurting

## Saie safari

so sad I graduated but Idk how to work this:"(

## broderp

My math gave me $307.58 with those terms and figures. Not sure I trust this method if the can't even do the math right. Looking to develop my own calculator in Excel for this for loan payments, this was no help since I can't trust it.

## Allinone The Great

My brain just exploded

## joseph vallejo

I don't want to buy a car after this lol

## ابو راكان

https://youtu.be/AuA2EAgAegE

## Dan Cava

Step nine:

this sucks!!!

## Dank

So they financed a $10,000 and with tax and interest it went up to 11,200?

I went in to finance a 8,000 car and at the dealers finance I was told it would 60 payments of 360ish which is around 22,000 so I got up slapped the finance leech and walk away

## hiblendmedia

Step 1: Use an online car payment calc with a "Gap" feature of $299 or add a "1" under Sales Tax Rate within the calculator and the monthly payment should come out the same.

## Jayjaychavez23

this math doesn't equal out to the same number the dealer gave me nor the number numerous car finance calculators gave me. Who's lying to me here?

## Lee J Linton

I'll just continue walking

Thanks thou…

## Shaka C

they should make another video by giving example how these numbers work

## DMYTRO GRYGORENKO

i can here for a class project

i hate this class

## Jose Echevarria

It worked, I did the math by myself with simples numbers and I compared it with an auto loan calculator app and got the same results.

## ChekMaFresh

If you came here for answers to your questions, you left with questions to your questions and no answers.

## WaywardHero 117

That moment when you forgot to change the percent to a decimal after a whole semester of stats, and you calculate the monthly payment of 4447 dollars

## Circuit Breaker

Step 1: learn how to write digits

## zakinaab

This is very confusing for me. I am out now.

## Tyree Jordan

Thank you. Knowing the math I can work backwards from the monthly I want, and determine the total loan and down payment needed.

## danial pun

Finally the cost of car was 10000.with interest for 5 yrs it became 25000

## Caleb Begly

It's worth mentioning that the method presented in this video is actually incorrect for most car loans in the US. Car loans in the US are compounded continuously, not monthly like this video assumes.

## Urban madam

https://theautoloancalculator.com/category/loan-calculators/

## Fredrick

wtf

## Sunny Rastin

What a freaking bad video👎

## Mashimaro spc

Ok. How much will it cost to hire an accountant?

## Paul Macal

I just took the same numbers I got from the example from this video and plugged them into payment calculator and got completely different numbers

## Damnit Bobby

If I did the math correct my car payment is $0.57 a month. Thanks.