Loan / Lease calculators, Loan Rates, Money Factors
Joined: Jan 2011
Posts: 507
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From: Atlanta, GA
Loan / Lease calculators, Loan Rates, Money Factors
In other words... how to save money buying or leasing a car.
A lot of people, regardless of age/sex, simply don't have the tools or understanding necessary to make a car purchase or lease and come out feeling confident they got a good deal.
We all know the dealer/bank we're getting our loan from has an abundance of information at his/her disposal and can change numbers with a few quick keystrokes as we sit at his/her desk without even a calculator.
Forewarned is forearmed, and the following links and files will give you the knowledge to negotiate or even walk out, in much more confidence.
First off, Loan Payment Calculators:
http://budgeting-investing.ameripris...S|e|8261412189
The nice thing about this one, besides being graphical, is the ability to calculate for each factor such as max payment, rate, term or price. The relationships between each allow you to customize your loan based on your credit score, price range, and even the monthly payment you can afford.
Car Loan Rates:
Since interest rates change like my wife changes paint colors in our house, the following links will give you idea of car loan rates currently, and are based on GOOD credit scores...
http://www.bankrate.com/auto.aspx
https://www.deltacommunitycu.com/Per...FY9V7AodbWt6Bw
http://www.capitalone.com/autoloans/...loan-rates.php
Credit Score:
While not something you can negotiate or shop around for, this plays a major role in what rate you can get on a car loan, thus potentially affecting loan term and monthly payment.
Various places can give you a report of it, such as...
www.freecreditscore.com
www.experian.com
www.equifax.com
Lease Payment Calculator:
A bit trickier than a loan payment calc, due to the inclusion of a "money factor" which is the financial institutions way of sort of hiding the borrowing rate. Money factors are used in lieu of an interest rate for fairly arcane reasons. When you lease an automobile, the total lease payments has to cover the difference between the capitalized cost of the vehicle and its residual value. That's a fancy way of saying you're paying for the difference in value between when you start the lease and when you turn the car back in.
You can ask directly for this information from the finance department at the dealer, or who ever you use.
The formula is... money factor x 24 = Rate.
I've attached an excel version of a Lease Payment Calculator as well as it being online here...
http://www.money-zine.com/Calculator...se-Calculator/
Summary:
I hope this information helps you get the best deal you can on a new or used vehicle and allows you the peace of mind that you did everything in your power to maximize your buying power.
Of course, the links were those I use/prefer, but any internet search will bring up a plethora of options.
The key is imply doing the research, and I hope I shed light on what exactly needs to be researched.
Please feel free to add, comment, critique. More info the better.
A lot of people, regardless of age/sex, simply don't have the tools or understanding necessary to make a car purchase or lease and come out feeling confident they got a good deal.
We all know the dealer/bank we're getting our loan from has an abundance of information at his/her disposal and can change numbers with a few quick keystrokes as we sit at his/her desk without even a calculator.
Forewarned is forearmed, and the following links and files will give you the knowledge to negotiate or even walk out, in much more confidence.
First off, Loan Payment Calculators:
http://budgeting-investing.ameripris...S|e|8261412189
The nice thing about this one, besides being graphical, is the ability to calculate for each factor such as max payment, rate, term or price. The relationships between each allow you to customize your loan based on your credit score, price range, and even the monthly payment you can afford.
Car Loan Rates:
Since interest rates change like my wife changes paint colors in our house, the following links will give you idea of car loan rates currently, and are based on GOOD credit scores...
http://www.bankrate.com/auto.aspx
https://www.deltacommunitycu.com/Per...FY9V7AodbWt6Bw
http://www.capitalone.com/autoloans/...loan-rates.php
Credit Score:
While not something you can negotiate or shop around for, this plays a major role in what rate you can get on a car loan, thus potentially affecting loan term and monthly payment.
Various places can give you a report of it, such as...
www.freecreditscore.com
www.experian.com
www.equifax.com
Lease Payment Calculator:
A bit trickier than a loan payment calc, due to the inclusion of a "money factor" which is the financial institutions way of sort of hiding the borrowing rate. Money factors are used in lieu of an interest rate for fairly arcane reasons. When you lease an automobile, the total lease payments has to cover the difference between the capitalized cost of the vehicle and its residual value. That's a fancy way of saying you're paying for the difference in value between when you start the lease and when you turn the car back in.
You can ask directly for this information from the finance department at the dealer, or who ever you use.
The formula is... money factor x 24 = Rate.
I've attached an excel version of a Lease Payment Calculator as well as it being online here...
http://www.money-zine.com/Calculator...se-Calculator/
Summary:
I hope this information helps you get the best deal you can on a new or used vehicle and allows you the peace of mind that you did everything in your power to maximize your buying power.
Of course, the links were those I use/prefer, but any internet search will bring up a plethora of options.
The key is imply doing the research, and I hope I shed light on what exactly needs to be researched.
Please feel free to add, comment, critique. More info the better.
Last edited by jstudrawa; Nov 8, 2011 at 04:03 PM.
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