Tough times don’t last, tough folks do. – Tex Earnhardt

 HOW DO I CALCULATE THE CAR PRICE I CAN AFFORD?

 

WHAT CAN I AFFORD?

 

You are looking for a smart car price and asking what you can afford to buy.  This comes down not only to the car price but to the loan you will get to buy the car.  There has been a trend of used car prices going up, and you should do your homework before getting a loan or choosing a car to buy.

There are a number of factors that will affect the final cost of the loan.  The first is obviously the car price.  The cost of the car, in this equation, includes whether or not the person has an adequate downpayment to reduce the loan amount.  Second, the interest rate affects how costly the loan will be. Third, the length of the loan can reduce your monthly payment, but it will increase the overall cost of the loan.  

With an auto loan calculator, you can enter the car price and the interest rate to see what monthly payments would be on a schedule of 3, 4, 5 or more years.  If you aren’t sure about how much cars cost these days, just take a look at our preowned inventory. You can use that like an up-to-date used car price guide.

You can also enter the monthly payment you want and work backwards from there to determine how much the loan amount would be at different interest rates.  This is a good way to find the loan amount you can afford. 

This may sound a bit complicated, but an auto loan calculator does the hard work for you. If you have any questions at all, Earnhardt Auto Centers is just a phone call away. Many of our dealerships also have online assistance, if you would like to take advantage of that. While you are talking to our staff, you should also ask about the latest used car specials.

Some people skip the calculator and let Earnhardt Auto Centers do the work for them. If you apply for No Bull Financing, you can get an even clearer picture of interest rates and how much money you can get for your car purchase. 

 


HOW DO I CALCULATE THE MAXIMUM CAR LOAN I CAN GET?

 

To determine how much you will need to borrow, first look at how much you will need to spend.  You can look at our inventory for prices.  You can also check the Kelley Blue Book used car price guide to see what the going rate is for a used car you really want.  That’s the best way to determine if a dealer’s offer is a smart car price.

The math behind calculating a loan is quite difficult if you aren’t a bookkeeper, accountant or banker.  It involves amortization, and loan officers generally have a guide to how this works for each individual client. 

Each month a small part of the payment goes to the loan amount. The rest is going to pay off interest. Over time, the formula begins to favor the car buyer until finally the loan is paid off.  

To understand how this works, it’s best to use an auto loan calculator. This way you can have a system that can do the math for you and give you answers. 

 


 

WHAT IS THE BEST WAY TO SHOP FOR A CAR LOAN?

 

There are many lenders trying to sell you a car loan. To them, they are selling a product and trying to make the absolute maximum profit.  To  you, it’s a vital service to help you get the car you need. Unfortunately there are some lenders who are focused solely on profit and do not consider buyers when designing their loans.

To avoid a predatory lender, you should look to lenders that have brick and mortar stores.  They should have a reputation in your community.  Earnhardt Auto Centers and its many dealerships have helped people just like you find loans. Even if you have no down payment, poor credit or bad credit, we should be able to help you find a loan.   

You can also trust Earnhardt to find you a vehicle at a smart car price.  We work hard to offer the kind of deals that turn buyers into return customers.

 


 

IS IT OK TO FINANCE A USED CAR WITH NO DOWN PAYMENT?

 

In the finance world, there are levels of better and best.  It is definitely best to buy a used car with a down payment.  You will probably get a better deal on the loan, and you will pay less in interest over the life of the loan. However, if you lack the means for a down payment, keep reading to find out alternatives.

Since No Bull Financing works with consumers who have bad credit, we can tell you that some shoppers find that they must get a used car with no down payment. It’s not a question of choice.  So, if you can make a down payment, definitely do it. If you absolutely can’t, it isn’t a complete deal breaker. Let’s talk about it.

Do you have a car to trade?  You might have a down payment. When using online systems, keep in mind that reputable dealers are honest about the need to see the car before giving you a final trade-in amount.  

Even if you don’t think you want to buy from Earnhardt Auto Centers, many of our dealerships are more than willing to buy your car at the KBB used car price.  This depends on the condition of your car. Kelley Blue Book has been producing a used car price guide for 75 years, and it has the resources to determine how much a preowned car is worth in today’s marketplace.

 


 

 

IS A $500 MONTHLY CAR PAYMENT TOO MUCH IN 2021?

 

There is nothing extraordinary about a $500 monthly payment in 2021.  The question is what is that $500 paying for.  

When you take out a car loan, you want to balance how much car you need with how much your budget can afford.  Therefore, a $500 monthly payment would make sense if you are getting a large three-row vehicle or luxury car at new car interest rates. It is definitely not a good idea if you are getting a ten-year-old car at high interest rates.  

 


 

For more information about auto loans, talk to our staff about No Bull Financing.

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