If you wish to buy a used or a new car then it is preferred that you should do your calculations before going and making the deal so that the numbers which you might have calculated could match with those of the dealers. For this calculation edmunds.com provides you a flexible suite of calculators which could help you calculate this cost.
How to figure out your sales tax value:
Often dealers quote the price of the car without including the costs that come along with it such as tax and licensing fees. These extra costs add up to become a huge sum which might go onto become a problem for you at a later stage, therefore you should calculate this cost before you buy the car. For instance if your car is for $30000 then you need to find out the sales tax amount of your state and add that to the price of your car. Until and unless you calculate this figure, you would get a realistic picture of how much the car would cost you.
How to figure title and license fees
Just like the sales tax value, the value for DMV is not included in the final price which is offered to you by the dealer. For this you need to consider a percentage which ranges between 1% to 1.5%. For this you would have to take the initial value of the car and apply this percentage onto that including your destination fees. This would give you the amount to which the sales tax would be added hence taking the total much more higher.
Figuring Auto Loan Payments
This process is called amortization through which monthly installments of your loan are calculated. Edmunds.com has created a calculator for this process as mentioned above which helps making this complex process easy for you. For this you need to value the below mentioned steps:
Value of Car +
Residual value percent ( x value of car)
Equals to Residual Value
Invoice price of the car – Incentives = Depreciation for over 36 months
Divide deprection by 36 to get depreciation per month
Use the figure which was deducted from incentives and add the residual value X money factor
Equals to times the money factor
Add depreciation figure and the money factor payment to arrive at the monthly lease payment.
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