There are a lot of car loan calculator websites out there but here’s a quick tip used at dealerships to estimate payments. Usually the first questions a sales person will ask you is “What are you looking to pay in monthly car payments?”
That’s a fair question but how do you figure it out without a calculator? In the automotive business we typically figure car payment of $100 a month for every $5,000 financed for 60 months at 6% interest.
As we said this tip may help give you an idea of what your payments may be depending on several factors in including:
- Your loan interest rate which is based upon your credit.
- The value of your trade in.
- Taxes, tags, title, etc.
We hope you found this tip useful and remember to verify everything with your dealer before you sign your Buyers Order. Thank you for visiting.