# car loan question..
**URL:** https://forums.speedlife.net/t/car-loan-question/24784
**Category:** NYSpeed Off Topic
**Created:** [February 19, 2007, 11:38am UTC](https://forums.speedlife.net/t/car-loan-question/24784 "2007-02-19T11:38:05Z")
**Posts on this page:** 9
**Page:** 1
### Author:  [@snowracer101](https://forums.speedlife.net/u/snowracer101)
#### Post date: [February 19, 2007, 11:38am UTC](https://forums.speedlife.net/t/car-loan-question/24784/1 "2007-02-19T11:38:05Z")
OK, this may seem kinda stupid but I can’t figure it out.
How do car loans work… It’s not just simple intrest…
like for example… If you take out a loan for 6 years on $15,000
and have a % rate of 5%
you will have a lot more intrest to pay off than $750…
I tried… $15,000 X .05 which gave me 750.
this doesn’t work either…15,000/6=2500 a year X .05 which=$150…
I’m dumb I know. I just want to know how dealerships figure this out
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### Author:  [@JustinH](https://forums.speedlife.net/u/JustinH)
#### Post date: [February 19, 2007, 11:41am UTC](https://forums.speedlife.net/t/car-loan-question/24784/2 "2007-02-19T11:41:34Z")
the interest is calculated annually, and they split the interest payments into monthly installments, and add that to the balance.
There are many web calculators that will figure it out for you.
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### Author:  [@Red99GTVert](https://forums.speedlife.net/u/Red99GTVert)
#### Post date: [February 19, 2007, 11:42am UTC](https://forums.speedlife.net/t/car-loan-question/24784/3 "2007-02-19T11:42:52Z")
[http://www.bankrate.com/gookeyword/auto-loan-calculator.asp](http://www.bankrate.com/gookeyword/auto-loan-calculator.asp)
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### Author:  [@system](https://forums.speedlife.net/u/system)
#### Post date: [February 19, 2007, 11:43am UTC](https://forums.speedlife.net/t/car-loan-question/24784/4 "2007-02-19T11:43:04Z")
[quote=“JustinH,post:2,topic:24784"”]
the interest is calculated annually, and they split the interest payments into monthly installments, and add that to the balance.
There are many web calculators that will figure it out for you.
[/quote]
^ Yup. Where are you getting your loan from? 5% is kinda low.
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### Author:  [@snowracer101](https://forums.speedlife.net/u/snowracer101)
#### Post date: [February 19, 2007, 11:55am UTC](https://forums.speedlife.net/t/car-loan-question/24784/5 "2007-02-19T11:55:35Z")
[quote=“Marcus,post:4,topic:24784"”]
^ Yup. Where are you getting your loan from? 5% is kinda low.
[/quote]
First of all… what I wrote above was a pure example… I just wanted to know if someone knew the formula.
p.s I have a rate of 3.9%
New car though…
its low but there are lower…like 0% on most new cars…
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### Author:  [@Mrs\_Karus](https://forums.speedlife.net/u/Mrs_Karus)
#### Post date: [February 19, 2007, 12:03pm UTC](https://forums.speedlife.net/t/car-loan-question/24784/6 "2007-02-19T12:03:28Z")
def use one of those internet calculators… i used one on yahoo finance when i was figuring out everything with my new car
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### Author:  [@Joe](https://forums.speedlife.net/u/Joe)
#### Post date: [February 19, 2007, 12:14pm UTC](https://forums.speedlife.net/t/car-loan-question/24784/7 "2007-02-19T12:14:45Z")
use an internet calculator or the PMT function in excel.
Only thing with that is for the interest rate, divide it by 12.
your hypothetical was =PMT(0.05/12,72,15000,0) = 241.57 a month.
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### Author:  [@Nikuk](https://forums.speedlife.net/u/Nikuk)
#### Post date: [February 19, 2007, 12:16pm UTC](https://forums.speedlife.net/t/car-loan-question/24784/8 "2007-02-19T12:16:20Z")
[http://dinkytown.net/auto.html](http://dinkytown.net/auto.html)
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### Author:  [@Mrs\_Karus](https://forums.speedlife.net/u/Mrs_Karus)
#### Post date: [February 19, 2007, 12:17pm UTC](https://forums.speedlife.net/t/car-loan-question/24784/9 "2007-02-19T12:17:16Z")
i used this
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