Welcome to Easy Car Loan Site.
What is Car Loan?
Once you decide you want a new car, the first thing you should do is figure out how much car you can afford. As we said in Section I, don’t let your dealer help you with these calculations. Do them yourself before you go shopping.
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Figure out how big a loan you should get. Your monthly car payment should be no more than 20% of your disposable income. That means that after you’ve paid all your debts and living expenses, take one-fifth of whatever’s left over and that’s your maximum monthly auto expense. |
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| Decide how long you’ll give yourself to pay your car loan back. | Monthly payment is, essentially, the amount of your loan, plus interest, divided over the number of months you have to pay back the loan. The more months you have to pay it back, the lower the monthly payment will be. But stretching out a car loan—or any loan, for that matter—will ultimately cost you a truckload more in interest payments. |
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