car financing
DESCRIPTION
How to get a car on monthly installmentsTRANSCRIPT
Textile Institute of PakistanBusiness Mathematics and Statistics
MATH-202
A project on:
Car financing
Presented to course instructor:
Madam Rakshanda shah
Prepared by:
Azhar Hussain TS2B
Spring 2004
CAR FINANCING
Suzuki Baleno 1300 CC
Price: 739000
CAR FINANCING
DescriptionModel of car Suzuki Baleno 1300 CC JXR PETROLPrices of Car (given by the company) 739000Financing Duration 5 yearsTOTAL NO OF TIME PERIODES
(years / months) 60
Down Payment (%) 15%Down Payment (Rs) 110850
Finance Amount (price of car – down payment)
628150
Factor* (as by SONERI) 0.0217424Monthly Finance Installment (installment factor ×
financed amount )13657.49
Total amount given (monthly financed installment × no of time
periods)
819449.4
Total interest 191299.4
CAR FINANCING
Description Example 1Models of car Suzuki Baleno 1300 CC JXR PETROLPrices of Cars (given by the
company)604739000
Financing Duration 5 yearsTotal No Of Time Periods (years / months) 60Down Payment (%) 15%Down Payment (Rs) 110850Finance Amount (price of car – down
payment)628150
Factor* (as by CITI) 0.023010Monthly Finance Installment (installment factor ×
financed amount )14453.73
Total amount given (monthly financed installment × no of
time periods)
867223.89
Total interest 239073.89
CAR FINANCING
Description Example Model Of Car Suzuki Baleno 1300 CC JXR PETROLPrice of Car (given by the company) 739000Financing Duration 5 yearsTOTAL NO OF TIME PERIODES (years / months) 60Down Payment (%) (%) 20%Down Payment(Rs) (Rs) 120800Finance Amount (price of car – down
payment)483200
Factor* (as by MCB) 0.02052Monthly Finance Installment (installment factor ×
financed amount )9915.26
Total amount given (monthly financed installment × no of
time periods)
594915.8
Total interest 111715.8
CAR FINANCING
Description Example Model Of Car
Suzuki Baleno 1300 CC
JXR PETROL
Price of Car (given by the company)
739000
Financing Duration 5 yearsTOTAL NO OF TIME PERIODES (years / months) 60Down Payment (%) (%) 20%Down Payment(Rs) (Rs) 147800Finance Amount (price of car – down
payment)591200
Factor* (as by KASB) 0.0206Monthly Finance Installment (installment factor ×
financed amount )12178.72
Total amount given (monthly financed installment × no of
time periods)
730723.2
Total interest 139523.2
CAR FINANCING
DescriptionModel of car Suzuki Baleno 1300 CC JXR
PETROLPrice of Car (given by the company) 739000Financing Duration 5 yearsTOTAL NO OF TIME PERIODES
(years / months) 60
Down Payment (%) 20 %Down Payment (Rs) 147800Finance Amount (price of car – down
payment)591200
Factor* (as by faysal) 0.02037Monthly Finance Installment
(installment factor × financed amount )
12042.74
Total amount given (monthly financed installment × no of time
periods)
722564.4
Total interest 131364.4
CAR FINANCING
DescriptionModel of car Suzuki Baleno 1300 CC JXR
PETROLPrice of Car (given by the company) 739000Financing Duration 5 yearsTOTAL NO OF TIME PERIODES
(years / months) 60
Down Payment (%) 20 %Down Payment (Rs) 147800Finance Amount (price of car – down
payment)591200
Factor* (as by ALFALAH) 0.02037
Monthly Finance Installment
(installment factor × financed amount )
12042.74
Total amount given (monthly financed installment × no of time
periods)
722564.64
Total interest 131364.64
For the duration of 2 yearsDescription
Model of car Suzuki Baleno 1300 CC JXR PETROL
Price of Car (given by the company) 739000Financing Duration 2 yearsTOTAL NO OF TIME PERIODES
(years / months) 24
Down Payment (%) 20 %Down Payment (Rs) 147800Finance Amount (price of car – down
payment)591200
Factor* (as by ALFALAH) 0.04514053Monthly Finance Installment
(installment factor × financed amount )
26687.08
Total amount given (monthly financed installment × no of time
periods)
640489.95
Total interest 49289.95
For the duration of 3 years
DescriptionModel of car Suzuki Baleno 1300 CC JXR
PETROLPrice of Car (given by the company) 739000Financing Duration 3 yearsTOTAL NO OF TIME PERIODES
(years / months) 36
Down Payment (%) 20 %Interest rate (%) 8.5%Down Payment (Rs) 147800Finance Amount (price of car – down
payment)591200
Factor* (as by ALFALAH) 0.031350591
Monthly Finance Installment
(installment factor × financed amount )
18534.46
Total amount given (monthly financed installment × no of time
periods)
667240.87
Total interest 76040.87
For the duration of 4 years
DescriptionModel of car Suzuki Baleno 1300 CC JXR
PETROLPrice of Car (given by the company) 739000Financing Duration 4 yearsTOTAL NO OF TIME PERIODES
(years / months) 48
Down Payment (%) 20 %Interest rate (%) 8.5%Down Payment (Rs) 147800Finance Amount (price of car – down
payment)591200
Factor* (as by ALFALAH) 0.0244704Monthly Finance Installment
(installment factor × financed amount )
14466.90
Total amount given (monthly financed installment × no of time
periods)
694411.22
Total interest 103211.22
CONCLUSION
By the above information we can conclude that bank ALFALAH and FAYSAL bank gives car financing loan at lowest rate. You will have to pay less when taking car loan from these banks. SONERI bank gives you at the rate of 7.9 % but when i got there for detail information they clear the point that this rate is only if you take loan for only one year tenure. Other banks show 8.5 % but the installment factor they give exceeds of that of bank ALFALAH and FAYSAL bank.