Go Back To Search Results Question Why does interest on car loans do not seem what they are? I recently went with a friend who wanted to buy a car. No matter where the financing came from, the final cost of the car included payments that doubled the original interest amount on the car. Is this the way it is or is this a way for financing institutions to stick it to you. By tyrone_63 Posted on 06/22/09 Total Answers 4 Answers- Interest is compounded either daily or monthly...this is why it is different. But I'm not completely sure of your question. Answer by : Knightro On Date 2009-06-22 12:31:30 sounds like u guys are ghetting srewed!!!! try a bank(not a credit union)!!!!....if u have good credit it should be like 5 to 9% Answer by : jimmer14292008 On Date 2009-06-22 12:31:52 That's pretty normal, if you take out a loan to buy something it usually ends up costing twice as much because you spread the interest out over several years. That's why you should pay cash for things instead. Answer by : SmartA$$ On Date 2009-06-22 12:31:55 not sure what question is. But if you want to buy a car by paying for it over 5 years, you could expect to pay about twice the price of the car after you pay interest. Most of us would be better off buying a cheaper used car we could pay for with cash or repay over no more than 24 months. Answer by : David Z On Date 2009-06-22 12:32:33   Go Back To Search Results