Buying a new set of wheels is always exciting! But between picking the perfect model, color and interior package, it’s easy to forget about the not-so-fun part: figuring out what it will actually cost each month.
Luckily, there are handy online car payment calculators that can estimate your monthly payments and total purchase price in Arizona. Keep reading to learn how they work and get tips to score the best auto financing deal!
How Car Loan Calculators Work
Car payment calculators are handy tools that estimate what your monthly payments will be for a auto loan. Here’s a quick rundown of how they calculate your payments:
- Vehicle Price: This is the total price of the car before any taxes or fees. You can start with the MSRP, invoice price, or online price quotes.
- Down Payment: The amount of cash you pay upfront, including any trade-in value. The higher the down payment, the lower your monthly payments will be.
- Loan Amount: The amount you need to finance after accounting for your down payment.
- Interest Rate: What annual interest rate the lender is charging you for the loan. Get rate quotes from banks and credit unions.
- Loan Term: The length of the loan, usually 36-72 months for a car.
With these inputs, the calculator estimates your monthly payment using an amortization formula that accounts for how much interest and principal you pay each month over the loan term.
It also incorporates estimated taxes and fees like sales tax, registration, etc. in Arizona to show your total monthly payment.
You can tweak the different variables to see how it impacts your payment. Super handy!
Key Factors That Determine Your Monthly Payments
When it comes to calculating your monthly car payments, there are a few key factors that have the biggest impact.
Vehicle Price
The total price of the car itself is the largest component. New cars will be more expensive than used, and options, add-ons, and destination charges can add up quick!
Negotiating a lower vehicle price makes a big difference in what you pay per month. Don’t be afraid to shop around between dealers and negotiate the best deal possible. A few thousand dollars off can save you $50+ per month.
Down Payment Amount
The more money you put down upfront, the less you have to finance. Even an extra $1,000 down can reduce your monthly payments substantially.
Putting 20% down is ideal, but every bit helps. Bring your trade-in, savings, and any rebates offered to lower your loan amount.
Interest Rates
The interest rate on your auto loan has a huge impact since interest makes up a chunk of your monthly payments. Borrowers with good credit (720+ scores) typically qualify for lower rates around 3-5%.
Before you buy, get rate quotes from multiple banks and credit unions. Even a small rate difference of 1% can save you hundreds over the loan!
Loan Term Length
You can choose loan terms ranging from 12-72 months typically. The longer the term, the lower your monthly payments will be.
But you end up paying more interest over the full loan period. It’s a balancing act to find the right term for your budget. 36-60 months is common.
Taxes and Fees
On top of your monthly loan payments you need to budget for taxes and fees in Arizona:
- Sales Tax: Arizona has a state sales tax around 8% depending on your county.
- Registration & Title Fees: These typically add a few hundred dollars.
Good loan calculators will estimate these costs for you based on the vehicle price.
Estimating Taxes and Fees in Arizona
Since taxes and fees are a big chunk of the total cost, let’s break down how they’re estimated for Arizona car buyers:
Arizona State Sales Tax
Arizona has a base state sales tax of 5.6%. But local county taxes can bring the total to around 8-9% depending on your location.
Sales tax is charged on the total purchase price of the vehicle including any options or addons. But there are some exemptions:
- Trade-in: Arizona offers a sales tax break if you trade in a vehicle. Tax is only charged on the difference between the new car price and trade-in value. This saves you hundreds!
- Rebates: Manufacturer rebates reduce the taxable purchase price in Arizona. Instant tax savings!
Arizona Registration and Title Fees
These fees pay for your new license plates and vehicle title. They are charged as a percentage of the vehicle’s value, typically coming out to $400-$800.
Online fee estimators can provide estimates based on your specific vehicle. Some key fees are:
- Title fee: $4 per $100 value
- Registration: $8 per $100 value
- Plates: $25 per plate
Make sure to account for these in your total cost calculations!
Why Use a Arizona Car Payment Calculator?
After seeing everything that goes into calculating your payments, you’re probably convinced that a car payment calculator is super helpful!
Here are some of the great benefits they offer:
- Estimate Affordability: See if potential cars fit your budget before even visiting a dealer.
- Adjust Terms: See how different loan lengths, down payments etc. impact your payment.
- Calculate Total Price: Factor in taxes and fees for your out-the-door price.
- Lease vs Buy: Determine which is the better financial option for you.
Whether you’re looking to buy new or used, a payment calculator takes the guesswork out of figuring out if you can afford the monthly payments.
Step-By-Step Guide to Using a Arizona Car Payment Calculator
Ready to crunch some numbers? Here’s a step-by-step guide to using a car payment calculator for Arizona:
Step 1: Enter Vehicle Price
Start with the MSRP, invoice price or an online price quote. Adjust for any options or addons you plan to include. This gives you a starting vehicle price.
Step 2: Enter Down Payment and Trade-In Info
Account for any cash down payment, as well as the value of a trade-in vehicle and any equity you may have. The more you put down, the less you finance.
Step 3: Enter Loan Terms
Choose a loan amount, interest rate and term length. Get rate quotes from lenders first to enter accurate rates.
Step 4: Estimate Taxes and Fees
Use Arizona tax and fee estimators to calculate sales tax, registration, etc. and input the amounts.
Step 5: Review Payment Schedule
See your full amortization schedule showing the breakdown of taxes, interest and principal paid each month.
You can go back and adjust terms until you get a monthly payment that fits your budget. Easy as 1-2-3!
Comparing Car Payment Calculator Options
You’ve got choices when it comes to auto loan calculators. Here’s how the options stack up:
Online calculators tend to be the most robust with detailed amortization schedules and tax/fee estimators. Useful to play with different scenarios.
Mobile apps provide a convenient on-the-go option. But they may lack some of the detailed functionality of web-based tools.
Dealer calculators are handy but may not provide an full picture since the dealer wants the sale. Independent calculators give you impartial results.
Look for calculators that include detailed amortization schedules and breakdowns. Simple monthly payment estimates lack the insights the full schedules provide.
Let’s Hit the Road!
Well there you have it! As you can see, using an auto loan calculator makes it super easy to estimate your monthly car payments in Arizona.
You can calculate your total monthly payment, play around with different loan terms, and make sure your next vehicle purchase fits your budget.
A few key tips for scoring the best deal:
- Shop around for the lowest interest rate
- Put down as much cash as you can
- Negotiate the vehicle price
- Use all available rebates and incentives
With the right prep and payment estimator, you’ll be cruising around Arizona in your new ride in no time. The open road awaits!
Happy trails friends! Let us know if you have any other car buying questions.