Calculator - Car Monthly Payment

A primary sales/closing tactic for car dealers is to sell you on the monthly payment. Well... more specifically a monthly payment 'range'.  And they want to do this without revealing to you what the interest rate and length of time they are using to quote you the 'monthly payment range'. To move forward with the deal based upon a monthly payment the salesperson or sales manager has quoted you, will be disastrous financially!  It will cost you thousands of dollars!

Other than the obvious, which would be big profit and big commission, by not revealing the interest rate to you and getting you comfortable with a monthly payment 'range' (range being the operative word).

Then if the financing department can bump your interest rate a point or two and still keep you in your comfortable 'payment range' (and they will certainly try. It's their job.) dealer the profits and commissions just keep rolling in at your expense!

But, by you knowing the numbers, when the sales person quotes you a payment range you will know what interest rate that equates to and put the kibosh on this tactic right from the get go.

As we have discussed throughout the website,  the mathematics of a car loan (or any loan for that matter) that affect how much your monthly payments will be are:    

• the amount financed

• the length of the loan

• the interest rate.

Another way automobile sales people like to lower the monthly cost (get you comfortable with that payment range) is to extend the length of the loan. However, this will be even more expensive for you. A longer length makes a loan more expensive over time due to the increase in interest.

Use the calculator below to figure the approximate monthly payment for your loan.