# Calculate Monthly Loan Payment of a new Vehicle

Trying to figure out how much you can afford when buying a vehicle? It can be a bit confusing when trying to figure in tax, tag and title fees as well as your down payment, annual percentage rate (APR), and trade in value on your old car. Before you blow a fuse trying to calculate your monthly payment, and trying not to get ripped off, try something else instead; let the Internet do it for you.

Many dealers will give you an estimate, but it is usually a bit lower than it should be. This is because they want to make maximum profit when they re-sell your car. So, doing a bit of research can help this be avoided, and also bring your monthly payment down.

Use web sites such as www.kbb.com (Kelly Blue Book) to find out the exact blue book value of your car. This process will determine its worth by entering what type of vehicle you have, what features it has, as well as its condition and history.

STEP 2: Research The Price of Your New Vehicle:
The next step is to find out how much that vehicle you have been eyeing actually is. Shop around online and call dealers if you like to find the approximate price you will pay for that vehicle. Go with the average price as it is likely the most accurate.

Step 3: Research Fixed APR’s:
This is a crucial step, as your annual percentage rate will determine your monthly payment. Look for the lowest APR you can find, and be sure that it is with a legitimate company, and has a fixed APR, meaning the APR cannot be raised. This will ensure that the loan agency does not raise your APR without your knowledge making your monthly payments rise higher and higher.

STEP 4: Determine Your Down Payment:
Down payments can greatly reduce your monthly payment. So you need to determine how much of a down payment you can afford, without depleting all of your savings. Even if your down payment is just a few hundred dollars, you will save on the interest you would have to pay on the loan for that amount. So it is definitely something you need to think about.

STEP 5: Calculate Your Monthly Payment:
Go to the following URL for Edmunds.com. This “Auto Loan Calculator” takes all of the information you have been researching and turns it into reality. For instance, say your research turns out these results: *