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Car Loan Calculation Chart

Posted by on February 20, 2012 in Comparisons - 1 Comment

When purchasing a car, it is common practice to research pricing and predict the monthly costs of vehicle ownership. Sadly, at the high-pressured dealerships that people are forced to purchase and lease cars at, it is hard to be sure that customers are getting a fair price. To ensure you are well informed, we have created a graph that will help you predict the cost of ownership on a vehicle lease.

The following chart is based on the following common lease terms, that are used as an assumption a to what people generally base the car price on. Note that these are the most common ways to lease in America, and therefore we use these datapoints as point of reference. If you were to change some of the terms, the pricing may come out differently:

Term: 36 month Lease

Annual Mileage: 12,000 Miles Per Year

Down Payment: $2,000

Credit: 700+

Tax: 9%

How to use the Car Loan Calculator:

To use the graph, first negotiate a purchase price on the vehicle you are looking to lease. Do not offer a monthly payment amount, as this is not a great way to gain control of the bargaining, and you are therefore much less likely to get a good deal. For example, if the sticker cost on the car you are looking for is $29,000, try to get the dealer to lower that price, not the estimated monthly costs. Once you have a decent offer on the price, use the following chart to predict the amount of money you will pay. (assumed 9% tax). For more explanation, see the following example car loan calculation:

Car Loan CalculatorExample #1:

Car: Toyota Camry XLE

Negotiated Price: $29,500

Down Payment: $2,000

Total Borrowed: $27,500.

$27.5 * $9 = $247.50

Calculation: $27,500 / 1000 = $27.50

So, the cost to lease the Camry XLE at the negotiated price would be roughly $247.50. This is a very good estimate, and is usually within $20 per month of what you are going to end up paying to Toyota Financial.

2012-toyota-camry-xle

2012-toyota-camry-xle

Car Loan Payment Example #2:

Car: BMW 328i Modern Line

Negotiated Price: $39,000

Down Payment: $2,000

Total Borrowed: $37,000.

$37 * $11= $407.00
Calculation: 
$37,000 / 1000 = $37

According to the calculation, the cost to lease this BMW 328i on the negotiated sticker price would be roughly $407.00 per month. Again, this is a good estimate and is likely to be within $20 of what your payment will end up being.

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1 Comment

  1. Posted February 20, 2012 at 7:36 am

    […] Please see our car loan calculator for an updated chart that can help you figure out your car […]

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