Guides

First car

Price the car, then tax, a trade-in, insurance, fuel, and the two offers.

14 lessons. Read them in order, or open the one that matches your question.

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1. 1The car payment versus the cost of the carThe loan payment is only the financing. Insurance, registration, maintenance, and fuel are added on top.1 min
2. 2Type the car price before sales taxThe price field is the vehicle price. Tax is calculated from it. Do not type a price that already includes tax unless the tax percent is zero.1 min
3. 3A car with no trade-inLeave trade-in at zero. Tax applies to the full price, and the loan is price minus down payment plus tax.1 min
4. 4Sales tax on the price minus the trade-inTax is the sales-tax percent times the price after trade-in is subtracted. The tax is then added to the amount financed.1 min
5. 5Trade-in and the amount financedTrade-in lowers the price before tax and lowers the loan. It is a dollar credit, not a monthly payment.1 min
6. 6The down payment on a car loanCash down reduces the amount financed. It is not a monthly cost.1 min
7. 7Car insurance in the monthly totalInsurance is a monthly amount you type. It is added in full and it does not end when the loan ends.1 min
8. 8Registration spread across the yearRegistration is a yearly amount divided by twelve. It is an ownership cost, not part of the loan.1 min
9. 9Maintenance as a monthly amountMaintenance is a monthly estimate you type. It is added to the car month and left out of the loan schedule.1 min
10. 10Fuel in the car monthFuel is a monthly amount you type. It continues whether or not the car is financed.1 min
11. 11Dealer quotes that leave ownership outMatch the dealer’s payment to the loan line, then add insurance, registration, maintenance, and fuel before you accept the month.1 min
12. 12Comparing two car loan offersBoth offers use the same amount financed and the same term. The cheaper one is fees plus interest over the hold.1 min
13. 13APR on a car loanThe note rate builds the car payment. The APR estimates lender fees paid up front and does not change the balance.1 min
14. 14What the car calculator does not estimateNo resale value, no insurance quote, no state fee table, and no fees rolled into the balance unless you put them in the price.1 min