Financing a Car would I be paying an extra $8,863 if I finance?

Vehicle Costs Totals



Vehicle Sales Price $9,995



Down Payment $3,500



Rebates $0



Trade-in Value $0



Vehicle Financing

Interest Rate 7.08%



Loan Term 60



Sales Tax (by city)

ZIP Code Needed 8%



Total Sales Tax $951



Total Paid For Loan $8,683Financing a Car would I be paying an extra $8,863 if I finance?
You are financing $7446, so the interest is $1237 over 5 years. (9995+951-3500=7446)

8683-7446= 1237



The sales tax of $951 is 9.515% of the sale price which seems awful high.



7.08% is not a great rate at all. Look around for a better rate at a credit union or bank.
You always end up paying more when you finance and, with a term of 60 payments, this amount doesn't seem unrealistic. If you can increase your down payment or your term, you can shrink this number.Financing a Car would I be paying an extra $8,863 if I finance?
No you would be paying an extra $3000 or so if you carry the loan out for a full term if its 60 months. If you pay it off early then you pay less finance charges.Financing a Car would I be paying an extra $8,863 if I finance?
Basically, you are paying $8683 plus your downpayment for everything, including sales tax. Loan amount is $7446, and the balance of $1237 is your finance charge over the term of the loan.



FWIW, If a car is being listed for $9995, you should be able to get it for less than that.



Also, if sales tax is 8%, then you should be paying $800 on a $10000 car. Your number seems a little fishy.