Call Us Contact Us
Young Insurance Young Insurance
  • Home
  • About
  • Services
    • Personal Insurance
    • Auto Insurance
    • Home Insurance
    • Life Insurance
    • Health Insurance
    • Commercial Auto Insurance
  • Policy
  • Claims
  • Blog
  • Contact
  • Quick Quote

    NextPrevious
    http://younginsurance.wpengine.com

    Tips for Calculating Car-Loan Payments

    By Young Insurance | Auto | Comments are Closed | 8 August, 2012 | 0

    In an effort to empower car buyers with below-prime credit, CarFinance.com released the following auto-financing tips which provide advice on calculating potential auto loan payments by identifying the car, and monthly loan payment, they can actually afford.

    1. Monthly payment:
     Understand what level of monthly payment you can afford by doing a detailed, hyper-honest, budget-setting exercise. Take your monthly income minus all payroll tax or estimated monthly tax deductions, then subtract everything: monthly mortgage payments or rental costs, credit card and other loan payments, health and car insurance (calculating how much more the latter will be with the new car) and get serious about estimating real-world living expenses (from food to fun, etc.) by looking at the last six months of your real spending (bank statements, withdrawals, checks, etc.) from your monthly income. What is left over is what you can afford each month.
    2. Know your APR up front: The higher the APR (Annual Percentage Rate – the cost you will pay on the loan, including your interest rate), the higher the monthly payment – and the more you will ultimately pay for the car. Waiting until you get to the dealership to find out your APR could mean you drive off in a vehicle that you can’t afford. The good news is that today you can get pre-approved online for a loan in minutes, providing you with key numbers, including your APR, to help you make a rational decision on which cars you should be looking at.

    3. Length of loan:
     For a given amount financed, the lower your monthly payments, the longer the term of your loan, but the longer the term, the more interest you pay, meaning you will ultimately pay more for your vehicle. Calculate what you will be paying overall to determine if you are willing to pay extra in the long run in order to pay less each month, or if you should look at a lower-priced vehicle.
    4. Rebates vs. rates: Understand the difference between the benefit of a cash rebate versus lower monthly interest rate before including it in your calculations. In many instances, you have the option of a manufacturer cash rebate or a low APR. While a low APR sounds enticing, remember that a cash rebate decreases the price of the vehicle, thereby lowering the amount you need to borrow, reducing your interest expense and less overall money spent in the long run. If you trade your vehicle in early, you can lose much of the benefit of the low interest rate. Plus, if you have less than perfect credit, you may not be eligible for the low interest rate anyway.
    5. Total price of the vehicle you can afford: This is the holy grail and to calculate this using one of the many calculators you can find online, you will need to allow for your down payment, monthly payment, APR, and the realistic price of the vehicle you are interested in, as well as trade-in (be sure to do your research to get a realistic sales price, whether you are selling the car yourself or trading in), rebates, sales tax, and loan term. You also need to allow for title and licensing fees; a good rule of thumb is 10-15 percent on top of the selling price. But remember, fees vary by state, from as little as $50 to as much as several thousand dollars depending on the state and the value of the vehicle.
    6. Go shop: Now that you know what you can afford, you can research online on sites like Edmunds.com to find vehicles that fit your budget. Many online sites offer a search by monthly payment or search by the amount you plan to spend; just be sure you are using the amount that you can afford and that their formulas take into account all the information you have accrued. Once you have found the vehicle that you can afford and want to buy, go ahead and get financed online so your conversation at the dealership is about the vehicle itself, and not the financing.
    Source: CarFinance.com

    No tags.

    Young Insurance

    Whether you are shopping for auto insurance, home, health, life or business insurance, our highly experienced team of insurance agents can help you find the right coverage at the lowest rate no matter what your needs are.

    More posts by Young Insurance

    Related Post

    • Young Insurance logo

      Welcome to our Blog!

      By Young Insurance | Comments are Closed

      The Young Insurance Agency is proud to bring you our newest online information center. In the coming weeks and months you can expect to find frequently updated content and articles of information regarding all-things insuranceRead more

    • http://younginsurance.wpengine.com

      Understanding Travel Insurance

      By Young Insurance | Comments are Closed

      Travel insurance is protection against those unexpected bumps in your travel plans, and may be well worth considering now that hurricane season is underway. However, just like trying to buy homeowners insurance after the houseRead more

    • http://younginsurance.wpengine.com

      Question of the Day

      By Young Insurance | Comments are Closed

      Q: What kind of home insurance should I get? A: A standard policy will do in most instances. It protects against several natural disasters and catastrophic events. However, it will not guard against earthquakes, floods, war,Read more

    • http://younginsurance.wpengine.com

      Mortgage Insurance Cancellation: The Myths and Realities

      By Young Insurance | Comments are Closed

      By Brien McMahon When it comes to private mortgage insurance (MI), there are several myths that exist that make buyers reluctant to consider a conventional loan with MI as an option when purchasing a home.Read more

    • http://younginsurance.wpengine.com

      Getting Smart About Your Debt

      By Young Insurance | Comments are Closed

      Americans’ recent push to eliminate their debt is placing many families at risk. The most recent Federal Reserve Bank of New York Quarterly Report on Household Debt and Credit shows that Americans reduced their debt by approximatelyRead more

    • http://younginsurance.wpengine.com

      Foundation Facts: Things to Consider When Repairing

      By Young Insurance | Comments are Closed

      With foundation repair costs in the thousands of dollars, most homeowners have to find ways to finance the project. What can make the project even more cost-consuming is choosing the wrong company and dealing withRead more

    • 4 Tips to Keeping Homeowners’ Insurance Costs Down

      By Young Insurance | Comments are Closed

      By Stephanie Andre Saving money has never been so trendy. Long gone are the days of irresponsible spending, so why be irresponsible with your homeowners insurance? Taking a little bit of time to research yourRead more

    • http://younginsurance.wpengine.com

      Baby Boomers Keeping Their Eyes on the Retirement Prize

      By Young Insurance | Comments are Closed

      In a survey of still-working adults age 55 and older, the majority of the respondents say they are not delaying retirement and believe they will be financially prepared to retire when the time comes. PulteGroupRead more

    NextPrevious

    Recent Posts

    • Can I Get a Good Auto Insurance Quote Online?
    • What Perils Does Your Homeowners’ Insurance Typically Cover?
    • Guide to Help Switch Auto Insurance Carriers
    • What does It mean for Your Policy If Your Life Insurance Company Just Got Sold Off?
    • How to Make Big Savings on Renters’ Insurance Premium?

    Recent Comments

    • Lighting Safety: It's Time to Decorate for Christmas! on Safety Tips for Driving in the Rain

    Archives

    Categories

    • Archives
    • Auto
    • Auto Insurance
    • Business
    • Commercial Auto
    • Halloween
    • Health & Life
    • Health Insurance
    • Home
    • Insurance
    • Lifestyle
    • Pet Insurance
    • Renter Insurance
    • Uncategorized
    • Vehicle Insurance

    CONTACT US

    24942 Greensbrier Dr
    Stevenson Ranch, CA 91381
    Monday – Friday
    9am – 5pm PDT
    Office: (818) 840-0246
    Fax: (818) 953-9341

    Recent Posts

    • Can I Get a Good Auto Insurance Quote Online

      Can I Get a Good Auto Insurance Quote Online?

      Can I get a good auto insurance quote online? The answer is

      22 June, 2022
    • What Perils Does Your Homeowners' Insurance Typically Cover

      What Perils Does Your Homeowners’ Insurance Typically Cover?

      Homeowners’ insurance comes in different categories. Some will cover ten perils, while

      8 June, 2022
    • Guide to Help Switch Auto Insurance Carriers

      Guide to Help Switch Auto Insurance Carriers

      Thousands of people shop for auto insurance every day. Perhaps you are

      25 May, 2022
    • What does It mean for Your Policy If Your Life Insurance Company Just Got Sold Off

      What does It mean for Your Policy If Your Life Insurance Company Just Got Sold Off?

      What happens when your life insurance agency gets acquired by another firm?

      11 May, 2022

    Quick links

    • Home
    • About
    • Services
    • Manage Your Policy

    Quick links

    • Claims
    • Quick Quote
    • Privacy Policy
    • Contact Us
    • Sitemap
    © Copyright 2021 YOUNG INSURANCE | Privacy Policy | Powered by Stratosphere
    • Home
    • About
    • Services
      • Personal Insurance
      • Auto Insurance
      • Home Insurance
      • Life Insurance
      • Health Insurance
      • Commercial Auto Insurance
    • Policy
    • Claims
    • Blog
    • Contact
    • Quick Quote
    Young Insurance

    Get a Quote