VEHICLE PLANNING GUIDE
Look beyond the car payment.
A vehicle has a purchase price, a financing cost, and a cost to keep it on the road. Plan for all three.
01Set your two limits first
Purchase cash is the amount you can use now after protecting other savings. Monthly vehicle budget is the amount available for the loan plus the ownership costs you include. Use “Calculate from details” if you want to build those limits from individual amounts.
02A worked example: the payment is only a starting point
An illustrative $25,000 loan at 7% over 60 months has a principal-and-interest payment of about $495 a month. Add $150 for insurance, $120 for fuel, and an $80 maintenance reserve, and the planned monthly total is about $845. A $700 budget would not fit this scenario even though the loan payment alone does. These are invented planning figures, not market quotes.
03Compare terms at the same purchase price
Extending a loan can lower the monthly payment while increasing total interest. In this same example, 72 months would bring principal and interest to about $426 a month, but total loan payments would rise from roughly $29,700 to $30,700. Compare total interest and how long you expect to keep the car, not just the smaller monthly number.
04Make the ownership assumptions your own
Use an insurance quote for the driver and vehicle, expected mileage, and realistic fuel or electricity costs. Consider taxes, registration, dealer fees, service, repairs, and charging equipment where relevant. An electric vehicle can shift costs rather than remove them.
05Use the matrix to expose the tradeoff
Compare purchase prices across columns and cash-down percentages down the rows. A higher down payment can ease monthly costs while exhausting your available cash. Envelope shows the larger share of the two budgets used. Open a cell to inspect the loan and running-cost breakdown.
06Use the result when shopping
Take your range to the seller and compare an itemized out-the-door price and financing offer. The calculator does not inspect a car, verify a listing, predict repairs, or guarantee financing. For a used vehicle, confirm its condition and history independently before buying.
Make it your own
Calculation details · CFPB: Compare auto loan offers
Examples explain the tool; they are not personalized financial advice. Change the assumptions to reflect your situation.