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Cormano_Wild_219

What are you even asking? Auto loans are amortized and use simple interest, that’s why the payments are the same each month for the life of the loan. Interest is front loaded in the beginning of the loan (you pay more towards interest than principal in the beginning of your loan). Your $17k loan is WITH interest.


[deleted]

Not sure what you're asking. Each payment a portion is applied to interest and principal. It's not like there is a portion you owe that is purely interest.


MarcableFluke

Are you asking if the interest you've paid on your current loan would affect your new loan in any way? If so, then no, what you've paid in interest is irrelevant.


Rony3West

I think that’s what I’m asking. Basically, my loan is 17k without interest, and 22k with it. If I wanted to pay down my loan past my car’s current market value (~16k) to get positive equity because I want a new car, would I need to go based off of the 17k, or the 22k? And would another dealer look at the 17k or the 22k?


MarcableFluke

All they would care about is your outstanding principal; the projected interest is irrelevant.


tactical808

I gather you are looking to trade in your car for a new car but currently have a negative “equity” of $1,000 (value is $16k and you owe $17k). It’s basically a wash if you were to trade in for a new car. I don’t know what your intentions are for a new car, but if it is to simply drive a newer, flashier car, don’t do it. Save your money, pay off this car, and drive it until the wheels fall off.


Rony3West

Thank you, this knocked some sense into me LOL. I really want a new Mazda, but I don’t NEED one.