How much should a car payment be for a 2009 Ford Edge if you have good credit?
(2011-01-08 21:41:43) 1. Says: Also, is it normal to have the price tag say 23,000 and then the bottom line be 27,000 after interest?2. Says: If you have good credit you should be able to get a loan around 5%. Since we don't know anything about the car we can't put a value on it but a used Ford Edge should cost around $20k (more or less depending on options, condition and mileage)Is it normal to pay $4000 in finance charges. YES.
But so what!!, nobody looks at the final pay off price anyway. Chances are you'll sell the car before it's completely paid off anyway so the "after interest" price is irrelevant. What you need to be concerned with is the actual cost of the vehicle (did I pay too much?) the loan terms (did I get a good interest rate?) and the length of the loan (am I paying for too long?).
You should also be concerned with the actual loan amount. The amount of money borrowed from the bank. The car was $23K, how much was the loan amount? How much money did you actually borrow from the bank? The finance charges (your "after interest" price) is nothing more than the fees you pay for borrowing the money from the bank and are not included in the actual loan amount.3. Says: I'm still confused. If the car was priced at $23k and your loan value was $27K where did the extra $4000 come from? What else did the dealer add to the price of the car to get you to $27,000? 4. Says: "How much?" depends on the amount financed, the interest rate, and the term of the loan.
Yes, interest is rent you pay on borrowing money, which adds to the total.5. Says: See your banker Tag: How much should a car payment be for a 2009 Ford Edge if you have good credit?