Estimating Your Monthly Car Payment

Calculating monthly car payments is little more than simple math; the problem is trying to determine in advance what factors will be used; these are often out of your control.

To most people the thing that matters most is their monthly car payment. The monthly payment on your new Chevrolet in Naperville consists of the loan amortization but over and above that, to determine how much you can really afford you must also take into account insurance, fuel, taxes, licenses, maintenance, etc. Financial advisors who deal with this all the time suggest that your total car expenses should be about 20 percent of your net income maximum.

The monthly payments take into account your current credit standing, the loans interest rate, the term of the loan and the initial down payment. The variables are tough, even the best automobile sales exec cannot give you an accurate number not knowing your credit history although he or she can give you a close estimate knowing the rate of interest, the term and the down payment. Once your credit history has been checked and factored in, then and only then, will the last remaining variable fall into place.

When you begin to discuss prices, remember to stick to your budget. Afford what you can afford, no more, that becomes what you can comfortably pay every month. Remember, not all the money goes to amortizing the loan; don’t forget taxes and fees. If the other items total $4000 say, then the maximum amount you can comfortably pay for the car is $21,000. If this is too much then your options are somewhat limited; you can buy a less expensive car, put a decent amount down or extend the terms. When you buy your new Chevrolet in Naperville your sales exec can help arrange financing that can help you get the car you want.

If you are looking for a new Chevrolet in Naperville you are invited to visit Hawk Chevrolet Cadillac of Joliet. At Hawk you will find the new Chevrolet that you are looking for at a price you can afford.

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