Before you shop
Decide on a budget first, then shop for the car. The car affordability calculator uses the 20/4/10 rule to turn your income into a price range. Then use the auto loan calculator to see the payment, sales tax and total interest on a specific car.
Buy or lease?
A loan means higher payments but you own the car at the end. A lease usually has a lower payment because you only pay for the part of the car's value you use, but you return it, or buy it, when the lease ends. Compare with the car lease calculator.
Once you have a loan
- See how much an extra $50 or $100 a month saves with the car loan payoff calculator.
- If rates have dropped or your credit has improved, check the auto refinance calculator.
Three numbers to negotiate separately
Dealers often steer the conversation toward the monthly payment, which can hide a higher price or a longer loan. Agree on the price of the car, the value of your trade-in and the interest rate one at a time. Getting preapproved by a bank or credit union first gives you a rate to compare with the dealer's offer.