# Credit Union Car Loan



## megabyte (27 Jan 2009)

Can somebody confirm this rate of interest on a 17000 euro loan.
Interest 2877.43
Total Repayable  19877.43
Term 5 years
Rate 6.7499% Fixed
Loan payable 261 weekley payments 64.14 + Interest.
Will not be keeping loan for 5 years should have it payed in 2.
But can somebody tell me how they came up with this Interest of 2877.43??


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## Padraigb (27 Jan 2009)

For a rough calculation: 17000 * 6.75/100 * 5 / 2.


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## megabyte (27 Jan 2009)

I have tried working out how they came up with this Interest amount 2877.43  over 5 years but it never works out to that amont of interest??


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## Rigoletto (27 Jan 2009)

being a credit union loan, doesnt the interest decrease incrementally as the loan is paid off?


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## megabyte (27 Jan 2009)

Yes Rigoletto but I would just like to see the maths as to how they come to this number maybe I am not doing the maths properly.
Thanks.


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## Rigoletto (27 Jan 2009)

just a thought is there a certain amount in the monthly repayments that goes into your shares?
or perhaps there is a certain amount in the monthly repayments for insurance in case of default. 
i genuinely dont know, just a thought.


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## zztop (27 Jan 2009)

17,0001283.1395.6216,7172283.1394.0316,4343283.1392.4416,1514283.1390.8515,8675283.1389.2515,5846283.1387.6615,3017283.1386.0715,0188283.1384.4814,7359283.1382.8814,45210283.1381.2914,16911283.1379.7013,88612283.1378.1113,60213283.1376.5113,31914283.1374.9213,03615283.1373.3312,75316283.1371.7312,47017283.1370.1412,18718283.1368.5511,90419283.1366.9611,62120283.1365.3611,33721283.1363.7711,05422283.1362.1810,77123283.1360.5910,48824283.1358.9910,20525283.1357.409,92226283.1355.819,63927283.1354.229,35528283.1352.629,07229283.1351.038,78930283.1349.448,50631283.1347.858,22332283.1346.257,94033283.1344.667,65734283.1343.077,37435283.1341.487,09036283.1339.886,80737283.1338.296,52438283.1336.706,24139283.1335.115,95840283.1333.515,67541283.1331.925,39242283.1330.335,10943283.1328.744,82544283.1327.144,54245283.1325.554,25946283.1323.963,97647283.1322.363,69348283.1320.773,41049283.1319.183,12750283.1317.592,84451283.1315.992,56052283.1314.402,27753283.1312.811,99454283.1311.221,71155283.139.621,42856283.138.031,14557283.136.4486258283.134.8557859283.133.2529560283.131.661216,987.802,918.54Monthly


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## zztop (27 Jan 2009)

OOPS.Monthly repayment roughly 283.13, Interest calculated per month by 
decreasing balance ie reduce capital by 283.13(64.14*52*5/60)


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## secman (28 Jan 2009)

One thing to take into account also, should you die the loan dies with you and your shares double. To take out a protection policy with a commercial bank would prob cost an extra €30 per month. You may think i am being very pessimistic here, but a dear work colleage of mine died very suddenly this month and his widow is left with a car worth about €12- 13 k and a loan of a similar amount. It will be difficult to sell it .

 just something to bear in mind.


Secman


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## RS2K (28 Jan 2009)

I thought they had to quote you the APR?


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## Padraigb (28 Jan 2009)

RS2K said:


> I thought they had to quote you the APR?



The rate in the original post is clearly the APR.


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## megabyte (28 Jan 2009)

Secman that is not the case in all Credit Unions and it is not the case with this one.They say on the forms  that all has to be payed back in case of death.
Padraig yes it is APR. 
One last thing do you think this is a good rate as one other bank gave me a rate of 8.1%.


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## Crugers (28 Jan 2009)

> _Loan payable 261 weekley payments 64.14 + Interest._


 

261 x 64.14 = 16740.54
It is impossible to repay a €17k loan with the above figures.
So someone has got something terrible wrong!


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## Padraigb (28 Jan 2009)

Crugers said:


> 261 x 64.14 = 16740.54
> It is impossible to repay a €17k loan with the above figures.
> So someone has got something terrible wrong!



I think you did: you ignored "+ Interest".


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## Crugers (28 Jan 2009)

Eh no!
No matter how much interest you pay it won't affect the principal.
Principal of €17000 can't be repaid by 261 repayments of €64.14.


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## Padraigb (28 Jan 2009)

The difference between €17000 and €16740.54 is not that great, and seems to me likely to be explainable by a typo: 64.14 for 65.14.


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## Crugers (28 Jan 2009)

> _...difference between €17000 and €16740.54 is not that great..._


Yes but that's not how it works when taking out a loan, repaying a loan or trying to confirm the rate of interest charged.
If the OP clarifies the facts an accurate answer can probably be found!


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## allthedoyles (28 Jan 2009)

you got a good interest rate ......My local credit union is 9.8 % 

Have a look here :

http://www.newrosscreditunion.com/


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## lasabrci (9 Feb 2009)

allthedoyles said:


> you got a good interest rate ......My local credit union is 9.8 %
> 
> Have a look here :
> 
> http://www.newrosscreditunion.com/


 

Some credit unions do not offer an interest rebate if they run a low interest rate for a particular type or class of loan. you would need to check with the credit union.  This may explain the difference.  personnelly I would prefer the lower rate to the rebate


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## galwaytt (10 Feb 2009)

Well, my local CU advertises car loans @ 6.5% APR.

Putting your 17k in as loan, paid weekly, over 260 weeks, comes out thus:

Principal: 17000
Term: 260 weeks
Weekly repayment: 76.26
Total Repayment: 19,824.93
Total Interest Repayable: 2824.93

So, your offer looks quite o.k. to me - I think what takes thinking about is the fact that the interest, paid weekly, decreases weekly, in line with the shrinking principal.

The 64.14 you've been quoted is simply the principal divided by 261 weeks.

Interest is whatever it is on the day you make the repayment.


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## megabyte (10 Feb 2009)

Just the answer I was looking for.Thank you Galwaytt.
So a good deal. Happy Days.


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