How To Calculate Auto Payments
There are two good reasons to calculate your monthly auto payments before you buy a vehicle. First, you will want to be sure the car you have in mind is within your monthly budget, and second, this information will be valuable to you when you are ready to talk to the dealer or seller of the car. You can use an online calculator such as the ones available at Edmunds.com or Bankrate.com to figure the auto payments. Becoming an informed consumer will empower you to make the best decision for your budget.
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Things You'll Need
- Online calculator Auto Info-price of car, taxes and fees Loan Info-term of loan, interest rate
Instructions
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Call or visit the dealership or seller ahead of time with a list of all the things you'll need to calculate your monthly auto payments.
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Go to your preferred online calculator.
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Decide what kind of loan options you are interested in. Are you looking for figures for a basic loan or low APR vs. cash back?
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Input the loan amount, including the automobile's sales price, sales tax (multiply your state's percentage by the price of the car), title and registration fees and down payment.
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If you are trading in a car, select its make and model. Fill in trade in value and amount still owed on the vehicle. If the calculator does not ask for this information, estimate trade in value and enter the amount in as an extra payment.
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Fill in the boxes with the finance rate and loan term then click "calculate" to get your monthly auto payments.
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Analyze the numbers the calculator provides. If they are not satisfactory then try out your varying options in loan term and price of vehicle.
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Tips & Warnings
Try out different interest rates, loan terms and principal balances on the calculator before you go to the dealership or seller. Having these different options in front of you and on paper will help when you are talking to the salesperson. Contact your bank or credit union for help and advice on buying a car and figuring monthly auto payments. They will be happy to assist you.
Often there are surprise fees that can be tacked on to the final cost of the sale. Call ahead of time and ask specifically about all possible taxes and fees so that you will have sound calculations before going to the lot.
