I went and got a loan and I understood it one way, and my mother is arguing with me saying it works another way. No reason to argue so lets get it strait.
If I got a loan for 15000 and a 2.6% interest rate for 5 years. I have 15000 to spend on the car, so 13500 on the car the 1500 for fee’s is how i looked at it. Then over time well you are paying you pay the interest every month 6, so after 5 years you payed the 15000 for the car and the 1000 or so in interest witch would come out to 16000 some odd dollars.
My mom thinks, that you have 14000 to spend and the bank will add the interest into the loan right off the bat so 14000 to spend on car 1000 interest so your loan is 15000