The Truth About Financing a Car

Have you ever financed a car? Interest rates of 15% to 30% may seem affordable when you have eight weeks to pay it off. But do you really understand what you’re paying for?

Say you want to buy a $250,000 car but only have $150,000. How the financing for a dealership works is you are charged interest on the cost of the entire vehicle, even your down-payment.

This means you could pay more than 75% interest on the amount you needed to finance.

Don’t believe me? Let the math do the talking:

FINANCING WITH THE DEALERSHIP:

Vehicle Price	Down-payment	Financed amount	Interest rate	Interest paid	Interest rate on financed amount*
$250,000	$150,000	$100,000	10%	$25,000	25%
$250,000	$150,000	$100,000	20%	$50,000	50%
$250,000	$150,000	$100,000	30%	$75,000	75%

*Dealerships charge interest on the entire Vehicle cost

Does it seem fair to pay interest on the entire car when you should only be paying interest on the $100,000 you need to finance?

With Adventure Financial we only charge interest on the amount you borrow. This leads to big savings:

FINANCING WITH ADVENTURE FINANCIAL:

Vehicle Price	Down-payment	Financed amount	Interest rate	Interest paid	Interest rate on financed amount**	Amount saved
$250,000	$150,000	$100,000	10%	$10,000	10%	$15,000
$250,000	$150,000	$100,000	20%	$20,000	20%	$30,000
$250,000	$150,000	$100,000	30%	$30,000	30%	$45,000

**Adventure Financial only charges interest on the amount you finance

Understanding your money is the first step towards the acquisition of wealth. So finance wisely and call a Loan Consultant at Adventure Financial today.

Reeta McNeal is the CEO of Adventure Financial: a bookkeeping, business consulting, loans and investment firm located in Downtown Los Santos. Phone: 839-874-4032