Need to understand car loan, can anyone help?

First I want 2 thank you 4 taking the time 2 answer my question. Here it is. I was young car buyer. I bought this car two years ago, cash value was 11,438.00. in the disclosing box u first see ANNUAL PERCENTAGE RATE 14.97(i know, i was young and naive)then next to it is FINANCE CHARGE 11,438.18. then TOTAL OF PAYMENTS YOU WILL HAVE PAID AFTER YOU HAVE MADE ALL PAYMENTS AS SCHEDULED16,323.00. and lastly a box with TOTAL SALES PRICE INCLUDING DOWPAYMENT 18,823.00. Now this a 5 year loan ,payments =272.05m but I have paid off this loan so fast that i currently own 8,200. But just last week my car was totaled and the insurance has valued my car @$ 10,000. that will pay off my loan,how much money have I lost?I am guessing I alredy paid them 10,600 , 8,200+10,600 equal the total payments within the five year term (see above) but since the loan will paid off faster should they take the whole money 8,200? Is it only 18,823.00 only if i pay in 5 years. If the insurance pay off now=less?

Need to understand car loan, can anyone help?

To answer your question, you will receive the difference of the value of your car %26lt;$10,000%26gt; less your current payoff %26lt;$8,200%26gt;....so roughly $1,800. Assuming they gave you a balance of $8,200 when you spoke to the lender.

Here is an explanation: Your car loan is a simple interest loan, which means you pay more interest than principal for the first 2.5 years of a 5 year loan. In your case, you paid additional money, which in effect lowered your total interest. The drawback to paying ahead on a loan is that in the event, such as this, your vehicle gets totaled, your insurance company will usually only give you a market value of your car. GAP insurance, which is offered to customers in a finance office, covers any negative equity in the event a car is totaled.

If your balance was $10,500 and the insurance company was only giving you $9,500, then you would have had to come up with $1,000 %26lt;unless you purchased GAP with the car%26gt;.

Here is a link for you about your car loan and how the interest was amortized. I already plugged in your figures. Good luck and I hope this helps! You can email me if you have questions.

http://www.bankrate.com/brm/auto-loan-ca...

Need to understand car loan, can anyone help?

r u commerce student???..........if yes then........n if not.....then consult wit.....a commerce student.........

Need to understand car loan, can anyone help?

I%26#039;m probably not going to be your best answer but here goes.

If you paid that much into your car you most likely paid almost all the interest owed on the car. Any type of loan is tricky when your paying more than your suppose to. At this point your pretty much screwed take what your owed and mark it as a learning experience. At least your credit score is good by making those extra payments.

A couple of tips for your next loan --- if your going to pay any additional money to your loan make sure they apply it to the principal of the loan (the actual value you are borrowing) by doing this you will not have to pay 5 years worth of interest, you will only pay the interest on what is owed at that time.

This may or may not apply to your next loan but look about getting what they call GAP insurance, this will cover you if you owe more than what the car is actually worth if something were to happen to your car. Your dealer or insurance carrier can explain this better I%26#039;m sure.

I hope this helps for NEXT TIME.

GOOD LUCK