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%
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.
Types of Vehicles
Determining a fair price for your vehicle
Make 1st offer a little below target price
DON’T REVEAL TARGET PRICE!!!!\
Wait for counteroffer
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
Think about additional costs
Always read everything before you sign!!!
Verify all information is correct.
Insurance for your vehicle
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
Operating Costs Of A Vehicle
- Enter purchase price
- Enter the age of your vehicle
- Enter the time vehicle has been owned
- Click Calculate
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
- To find your registration fees go to www.dor.mo.gov/motorv/fees.php
- To find the fees for your title go to www.dor.mo.gov/motorv/titling.php
- 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.