Post by momto4kiddos on May 31, 2015 11:15:01 GMT
Apparently my logic and reasoning skills are not good.... I feel like this is one of those math word problems where the train was going so many mph in one direction for x amount of time, when did it get there type of things, lol.
Got word that dd's car is totaled. It was brand new, had made I believe 5 payments on it. Thankfully no one was injured. She has all the paperwork so we have the figured and it all sounds reasonable until I think about the payments made.
So i've broken it down into two figures - the amount paid for the car itself and then i've lumped all other expenses together (sales tax, dealer fees, registration & title fees.) I've added this together and come up with the total cost of the vehicle purchase.
Some of it was financed so obviously the purchase price would be driven up by the interest in the end. I didn't factor that though I just went straight purchase, plus other expenses for the total. The offer is for slightly more than the purchase price, plus all fees. So she'd come out with a few hundred dollars over what she paid initially.
Here's where I trip myself up. She made I believe 5 payments. Obviously any interest paid is not calculated into the original sale price. I get that the car will cost more in the end due to the interest paid on the loan.
My thinking is if you add the interest paid on the loan to my original numbers of the vehicle purchase then we have a total cost for what that car cost her? The principal part of the payment would be covered within the checks she's about to get back correct?
Trying to wrap my head around how the payments made factor in, or maybe really shouldn't. I feel like when I take the original total amount to purchase it (and then just consider interest) I feel like that should be giving me her total costs and I should be ignoring principal paid because it's technically coming back to her in the settlement?
I feel like since she'll restart a 4 year loan that now she's paying longer and I think that is throwing me off, but it's truly like starting over with the same amount of money (or maybe a couple hundred more) at this point I think.
Editing to add: For the record, we're happy with the settlement! I am an overthinker!
It's just one of those puzzles of you think you're starting over, which you are but how much so... You're paying 4 1/2 years on a car now vs 4 years or are you really because you got the money back in the payoff.
This is purely just a how to the pieces of the puzzle fit kind of thing!
Got word that dd's car is totaled. It was brand new, had made I believe 5 payments on it. Thankfully no one was injured. She has all the paperwork so we have the figured and it all sounds reasonable until I think about the payments made.
So i've broken it down into two figures - the amount paid for the car itself and then i've lumped all other expenses together (sales tax, dealer fees, registration & title fees.) I've added this together and come up with the total cost of the vehicle purchase.
Some of it was financed so obviously the purchase price would be driven up by the interest in the end. I didn't factor that though I just went straight purchase, plus other expenses for the total. The offer is for slightly more than the purchase price, plus all fees. So she'd come out with a few hundred dollars over what she paid initially.
Here's where I trip myself up. She made I believe 5 payments. Obviously any interest paid is not calculated into the original sale price. I get that the car will cost more in the end due to the interest paid on the loan.
My thinking is if you add the interest paid on the loan to my original numbers of the vehicle purchase then we have a total cost for what that car cost her? The principal part of the payment would be covered within the checks she's about to get back correct?
Trying to wrap my head around how the payments made factor in, or maybe really shouldn't. I feel like when I take the original total amount to purchase it (and then just consider interest) I feel like that should be giving me her total costs and I should be ignoring principal paid because it's technically coming back to her in the settlement?
I feel like since she'll restart a 4 year loan that now she's paying longer and I think that is throwing me off, but it's truly like starting over with the same amount of money (or maybe a couple hundred more) at this point I think.
Editing to add: For the record, we're happy with the settlement! I am an overthinker!
It's just one of those puzzles of you think you're starting over, which you are but how much so... You're paying 4 1/2 years on a car now vs 4 years or are you really because you got the money back in the payoff.This is purely just a how to the pieces of the puzzle fit kind of thing!
