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Old 08-23-2016, 09:50 PM   #5
lowside67
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Quote:
Originally Posted by rucus View Post
Thanks, lowside67



Indeed, I may not have understood it correctly. They do it so fast I can barely catch up nor have the time to ask questions. They even offered me to take the car with me, but I refused saying I need to review the amount, so here I am.

It looks to me though that
$171 * 130 = $22,230. So add the $5000 DP to that would mount to $27,230.

Out of curiosity, may I ask how the $23,655.86 was derived from your calculation? And do you mean there is a mismatch between the interest rate they have given to me vs. my bi-weekly payment?

Thanks,
Rucus
It's a present value calculation, the PV of 130 bi-weekly payments of $171.00 with an annual rate of 7.18%. The PV of that is $18,655.86, then you add your $5,000 to get "today's dollars".

The bottom line is that cannot be correct. Either the payment or rate is wrong, there is no amount of fees and taxes on a $17,000 car that would equal an out the door cost of $23,655.86 today.

Mark
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