Buying a New or Used Car

For People Who are Too Dumb to Figure It Out

Determining your budget

Based on your monthly income determine the monthly vehicle payment you can afford.

Your car payment should not be more than 20% of your income so take your monthly income and multiply it by 20%. After that is done go to www.carsdirect.com. Enter your monthly payment. Enter a realistic down payment.

Credit rating- Evaluate your credit score and enter your information

Select Term (you can try different terms and see how the term affects your outcome...you must choose 36,48, or 60 months) (I recommend 36 months)

Sales Tax: 7.85%

Click Calculate

Comparing Interest rates

You can change the term length. The longer the terms the lower your monthly payments will be, but you will pay more in interest and vice versa.

Finding a Vehicle

You can get a car straight from the dealers website


Or you can go to a used car trader website


Types of Vehicles

Determining a fair price for your vehicle

To determine a fair price go to Kelley Blue book at www.kbb.com. Enter all of your information about the car. The website will then direct you to the fair asking price of your vehicle.

Haggling

Round 1:

Make 1st offer a little below target price

DON’T REVEAL TARGET PRICE!!!!\

Wait for counteroffer

Round 2:

2nd offer should be a bit higher than the 1st but still below target price

Wait for counteroffer

Continue this process until final price is agreed upon

Round 3:

Final Price

Think about additional costs

Sales Tax

License/registration

Property Tax

Insurance

Round 4:

Read Paperwork

Always read everything before you sign!!!

Verify all information is correct.

Insurance for your vehicle

To determine what insurance you need you must see your insurance agent. to get a quote for insurance for your vehicle. Have your name, dob, social security no, address, year, make, and model of your vehicle written down.

Financing

Figure your amount financed

Using the amount financed find your estimated monthly payments at www.bankrate.com

Click on auto tab

Click on auto loan calculator to find your monthly payment

Make sure you can afford this monthly payment

Click on show amortization table to find the amount of interest paid over the life of the loan

Sales Tax

Go to www.dort.mo.gov/net_apps/SalesTaxCalc/ to figure the sales tax for your vehicle by following the steps that apply to your vehicle.

Operating Costs Of A Vehicle

Depreciation:

Annual Interest on Loan

  • The amortization table you looked at in Financing at www.bankrate.com shows the annual interest on a loan

License & Registration

Property Tax

  • This information is found at your county assessors's office.
  • You must pay property taxes at the end of each year on all property you owned at the beginning of that year.