How to Calculate Your Car Payment
Before you go to a car dealership to buy a car you should already know what monthly payment you can afford and how much you should spend on your car.
Do Not Let the Auto Dealer Calculate Your Car Loan Payment!
Use the Auto Loan Calculator below to determine what you pay for the car, your interest rate, and how long your loan should last.
Important Tips When using a Car Loan Calculator!
- When calculating your car loan payment, make sure you add tax, title and any other additional fees to the Auto loan amount.
- Talk to your bank, credit union or an online car loan service to determine the lowest interest rate you qualify for. DO NOT let the Car Dealership determine your interest rate!
- Try to keep your loan length as short as possible. Do not stretch a loan to 60 or 72 months to get a lower payment. Try to keep the car loan around 48 months or less.
- Do not forget to subtract your down payment or trade in value from the loan amount or you will pay too much!
Huge Car Buying Mistake Can Cost You Thousands!
Are you a monthly payment only car buyer?
Too many car shoppers are fixated on a monthly payment and lose sight of the other parts of the car deal. The salesperson wants to get you stuck on a monthly payment only so he can work the numbers withing the deal to get you the payment while maximizing profit.
What usually happens is you end up with a car loan that is longer than it should be for the same monthly payment.
The car dealer increases the selling price of the car, bumps up the interest rate a point or 2, adds in some extras, and steals your trade in, at the same time getting you your monthly payment.
What they do is increase what should have been a 48 month loan to a 60 or 72 month loan. You get your payment, but pay thousands more for the vehicle.
Run your own numbers, so you know what you can afford and how long your payment schedule should be!
Using the Car Loan Calculator above and calculating your monthly payment based on your number not the dealers will save you thousands of dollars!