When comparing 2 or more vehicles, compare the mileage difference between the vehicles.
Gas Mileage: Taking mileage into consideration can save you money down the road. Research the vehicle to see how the make and model you are looking at compares against similar vehicles. Auto Maintenance: Some vehicles can have surprisingly high maintenance and repair costs. They will be able to provide you with a quote on your new insurance cost. Contact your current agent with the VIN of the vehicle you are considering. Auto Insurance: Knowing the cost of your auto insurance before buying a vehicle will eliminate any surprises. Get a Better Auto Loan Deal At Your Credit Union. Don't Overpay for that Auto Loan-Fix Your Credit Before You Buy. Does Shopping Around For an Auto Loan Affect My Credit Score?. Alison, Are Credit Unions Really the Best Auto Loan Option?. The longer term loan would cost $1,025.64 more than the shorter term loan. $28,000 financed with a 3.50% interest rate. Rates are usually higher for longer term loans, adding to the expense of a long loan term.Įxample of an Auto Loan with Different Number of Months. Short terms also help you build equity in your vehicle in case you trade it in before you finish paying off the loan. Choosing fewer number of months will increase your monthly payment, but you will pay less interest over the life of the loan. The number of months determines how long you will be paying on the loan until your vehicle is paid off. Number of Months: The length of the loan is also referred to as the loan term. 
Either way, you will save interest expense the more you put down. Applying a larger down payment can either lower your monthly payment or shorten the term of the loan. Down Payment: This is the amount of cash you will be applying toward the purchase of the vehicle.The higher interest loan would cost $1,492.80 more than the lower rate loan.
A slightly higher interest rate may not appear to increase your monthly payment by much, but your financing cost increases significantly.Įxample of an Auto Loan with Different Interest Rates.
The lower your interest rate, the lower your monthly payments will be. Negotiate the the lowest rate possible to make your new car as affordable as possible. Interest Rate: The annual interest rate on the loan for the vehicle.A car with negative trade-in equity is referred to as "upside down" when the loan principal is higher than the value of the vehicle. This amount can be either negative or positive. Trade-in Equity: This is difference between what you owe on your trade-in and what the dealership is willing to offer you.Depending on where you live, sales tax can add a significant amount to your purchase price. Vehicle Cost: The total cost including agreed upon price, tax, title, and license.
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