5 Car Loan Myths Explained with Google Sheets & Excel

5 Car Loan Misconceptions and Costly Mistakes: Debunked with Excel or Google Sheets

In this YouTube video, we debunk people's misconceptions about car loans. We use three car loans in Google Sheets or Excel to debunk the myths about car loans and show you how to watch out for costly mistakes and false advertisements when shopping for car loans and financing your next vehicle. You will see the monthly payments, interest rates, loan terms, and loan amounts impact the total cost of your loan.

—Chapters—
00:00 - Intro
00:33 - Myth 1: Lowest monthly payment is always better
01:39 - Myth 2: Loans with the same monthly payment cost the same
02:40 - Myth 3: Loan amount includes interest
03:19 - Myth 4: Total interest = loan amount x interest rate
04:16 - Myth 5: Interest rate and APR are the same

------DETAILS------
Misconception 1: Lowest monthly payment is always better
Lower monthly payment doesn't always mean less financing; APR and loan term impact total interest.

Misconception 2: Loans with the same monthly payment cost the same in total interest
Different variables affect total interest despite identical monthly payments.

Misconception 3: Loan amount includes interest
The amount of the car loan you borrow does NOT include interest. Interest is on TOP of the loan amount, which is the extra cost for lending you money.

Misconception 4: Total interest you pay on a loan = the amount you borrow x the interest rate
You also have to consider the number of years for your loan and the amortized monthly payment. To learn what is amortized payments, watch this video: https://youtu.be/aL7dlZ_d15A

Misconception 5: Interest rate and APR are the same
APR accounts for additional fees and charges and is used to compare car loans from different dealers or banks as apples to apples.
You can use different APR calculators:
https://www.experian.com/blogs/ask-experian/apr-calculator/
https://www.calculatorsoup.com/calculators/financial/apr-calculator.php
https://www.inchcalculator.com/apr-calculator/


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Тэги:

#google_sheets #excel #google_sheets_formulas #google_sheets_calculations #google_sheets_tutorial #loan_amortization #calculate_monthly #calculate_monthly_payment_on_loan #calculate_monthly_interest_rate #PMT_function #RATE_formula #car_buying_tips #car_buying #car_loans_explained #interest_on_car_loans_explained #car_loan_mistakes #car_loan #car_payments #car_loan_interest_rates_explained #car_loan_secrets

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