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Old 10-14-2013, 05:27 PM   #59
mav1178
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Quote:
Originally Posted by Carsten View Post
Well the arp is more of less understandable, I had a ridiculously high apt on my first auto loan too.(i am currently paying off a car that will be handed over to to my fiance once I buy my new car)

So I understand the apr but that doesn't explain the extra 10-15k
Quote:
Originally Posted by Carsten View Post
It's a weird assumption that everyone on here thinks I haven't done any research at all.

Is it because I am 19 and therefore stupid? Or what?

I mean I appciate the suggestions, but I have done a massive amount of research on this.
It seems you have yet to finish doing your research if you don't understand "total cost of ownership", including all finance charges as well as opportunity cost of money... this is where we're all making assumptions about you, because you're not understanding the fundamentals of what a loan includes.

Example: $500k house, you finance $350k of it at 4% APR. You'll pay more than $250k in interest over a 30 year mortgage, making the total cost of ownership in excess of $750k. Do you walk away and not buy the house because it's not worth it?

Car ownership is the same. What you pay is very much directly related to your APR and length of loan, so I don't understand why you're remotely surprised by a total loan amount of $43-46K when your APR is sky high.

I am not doubting your intelligence, I am doubting your current pool of knowledge and how you are applying it to your financial situation with regards to your decision to buy a FRS.



-alex
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