Figuring Out Monthly Car Payments

Buying or leasing a car?  The chances are you are financing it as well.  Most people just don’t have $15K, $20K or more to purchase a car outright, which makes finding a car loan very important.  Here are some tips to figuring out a monthly car payment and actually how much you will pay for a vehicle.

Financing a Vehicle
The problem with today’s car salesman is that once you walk into the office and state that you want to finance a vehicle, they no longer talk about the sticker price of the car, but how much it will cost you in monthly payments.  This is a big disadvantage to a buyer, because you could be paying much more for the vehicle than you know due to the price being disguised in monthly payments.

When talking with a salesman, ask him or her what is the total price of the vehicle before figuring out any payments.  From this point, you can always do the math on your own and figure out depending on the interest rate and the loan term (2 years, 4 years, 5 years, etc) what your monthly payments should be.

Using Online Tools
There are plenty of online calculators that you can use to determine how much a car will cost over the life of a loan.  You take into account the total cost of the vehicle, tax, the length of the loan and of course the interest rate.

Bring a Calculator
You probably already have a calculator on your mobile phone, if not bring a calculator along with the formula for figuring out the cost of monthly car payments.  You can get these formulas easily online.  Then go ahead and calculate monthly payments right in the salesman’s office.  This way you won’t pay extra for your vehicle.

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