Do you tense up when a car salesman asks "What would you like your monthly payments to be?" Now Autobytel is offering a car cost calculator that can show you before you get to the dealer just how much you'd pay monthly, yearly or bi-weekly for your new vehicle.
Many factors go into determining the final loan amount for the purchase of a new
or used vehicle. These include any available manufacturer's rebate, the trade-in
value of your old vehicle (less any outstanding balance you owe), your cash down
payment and the annual interest rate and the term (length) of the loan.
With Autobytel’s new 'what would my car payments be' calculator, knowing your car payments is a snap For example, let's say the purchase price of the car you'd like is $19,500. (Don't forget to add your estimate of total local sales tax and registration fees to this number.) On line two, enter any cash rebate available. Let's say it's $1500. The value of your trade-in, which we'll say you owe nothing on, is $3000. In addition to the $3000 from your trade-in, you can afford to add a cash down payment of $1000.
Your credit is good, so you can get an annual interest rate of 4%. On a 48 month loan, your estimated monthly auto payments are $316.11, and you'd pay $1,173 in interest over the life of the loan. If you went for a 60 month loan, your monthly payments would be $257.83 and $1,470 in total interest.
The calculator's flexibility lets you try different scenarios. For example, if you got a 48 month loan at 0% from the auto manufacturer, you'd have to give up the $1500 rebate--and the calculator will show it's not worthwhile to do so. Even at zero percent financing, you’d pay $322.92 a month on a 48 month loan, a total of $327 more than taking the rebate on the 4% loan.