Attached is a simple loan calculator that you can use to estimate total cost of purchase, total interest and most importantly, monthly payments. It's in Excel format and if you have a PDA (Microsoft PocketPC or Windows Mobile) it's a great tool to have when you're at the dealer.
I modified it from a calculator I found on http://www.carbuyingtips.com/
which happens to be an excellent resource for potential buyers.
Here are the variables you need to change:
State Sales Tax Rate (%)
- You need to include taxes and fees here as well. I find that adding about 1% to your sales tax is pretty accurate. For example, I'm in Los Angeles county, CA so my sales tax is 8.25% of the vehicle so I use 9.25%
in this field.
Selling Price of car
- Cost before any miscellaneous taxes and fees
- Enter any manufacturer rebates
- Up front $$ out of pocket. You can use this field for your trade-in value instead if needed.
- Use this field for added costs such as an extended warrantee or additional options at the time of purchase. This field is slightly confusing. If you pay $2200 for an extended warrantee, enter the number as a negative value (-2200
- Enter number of years
Interest Rate (APR)
- Enter interest rate
Hope this helps all the prospectives out there!!