Im buying a new car?

Question

Can someone tell me exactly how are the monthly payments are calculated so I wont get taken because I am a woman?

Answer 1

I found a great article to help you. The monthly payment calculation will be double checked by your finance company. The dealer won't make an error there. But, there are alot of things you need to know about buying a car.
I work for an auto finance company and this article is right on!

http://development1.blogspot.com/2007/01/buying-your-new-car.html

P.S. The calculation for a car payment is below... Don't listen to those guys saying that 6% is a normal interest rate. According to BankRate.com the average interest rate available for a 60 month term is 6.91%, but that's for customers with excellent and substantial credit.

PMT = P (1 + ni) / 12 n
P = Principle (the amount you're financing)
n = term (in years)
i = intereste, or APR (Annual Percentage Rate)

Answer 2

Pay attention when price is being discussed because there can be many additional fees the dealership will tag on the total bill. Do not be afraid to back off the deal if you feel like you are being overcharged.
Different countries, states have different fees. Determine already what comes with the car and what are the billable extras.
These are the automatic transmission. Very important. Does it come with the price they quoted you? Usually a base price quotes a standard model.. Do you know how to drive a standard
Features such as air conditioning, power brakes, power windows, power doors, safety features, (at least 4 things to be included here as standard) how many years warranty(what is included in the warranty ask for the drive train warranty) taxes, undercoating,
Lastly, immobilizers, car alarms, throw in the floor mats, etc.
The monthly payments are already the easy part. Determine your total bill first, and what you get for that money. List all and comparison shop.

Answer 3

Car payments are based on your income and your credit score. However Some dealer are as they should seem. Try to stay away from those dealers "without" a common name. Ole joe blow down the street may have the car you want but I'm sure he can swindle you out of more money then your willing to pay.

Rule of thumb, calculate your income, house payment, figure in insurance, your electric bills, gas and food etc. oh and don't forget the "miscellaneous bills".

Now having said this. your probably looking at a payment of around $ 200.00 a month. assuming you have good credit etc. The national average is around $ 500.00 a month.

But for some odd reason we tend to get attracted to those cars we see on the lot, we have to have "that" car. Do not get roped into something you cant afford or your not comfortable with. it's not about color, make or model. It's about:

1) How far do you have to drive to work?
2) Will this car give me good gas millage?
3) What are some of the maintenance issues associated with this car?
4) Would the up keep of this car force me over budget?

One good thing to have if you decide what car you want is a "Lay Off" insurance. This is when your job lays you off and your car is paid for. Also don't for get "Gap" insurance.

I'm sure there are many other view points on this matter, But having bought ten cars in eleven years, We had to "voluntarily repossess" two of these ten cars.

Answer 4

Nikos is not quite right, since interest is paid on the total amount left, not the total financed.
They will need to show you the paperwork showing interest rate and payment info. You should be able to get a new car for about 6-7 percent interest, max. You can verify the amounts with an online interest calculator.
They can't charge whatever they like, they can get into deep kim-chee for doing something like that. It's called the truth-in-lending law.

Answer 5

Yahoo has a calculator under finance section. Why waste money on a new vehicle,and bind yourself into debt. Buy more real estate, cars lose value the day you drive off.

Answer 6

the final price of the car + yearly intrest rate divided by the number of payments you make...
intrest is different from dealer to dealer also you must subtract any downpayment you make...

ex.
cost of car 10,000
intrest rate 3.5%
equals 10,350
downpayment 1000
number of payments 12
so 9350/12
equals 779,17 each payment

Answer 7

all answer them also say alrdy i juz tell u make sure u also can pay for u petrol n u roadtax n u insurans!!!

Answer 8

try your own bank first and go there with a loan