As the public transportation system in most U.S. cities is rather complicated and messy, moving around the city can take a very long time. To save the situation may own a car. It is best to buy a car for cash, as in this case, you will not have to pay interest and, besides, you can bargain for a lower price. If it is not possible, you should choose a auto loan with the lowest interest and more beneficial repayment plan. Compare the conditions offered by the car dealer and your bank.

Interest on auto loans for buying a car can vary greatly. Typically, auto loans for new cars are issued by 5-7% per annum for used cars interest rate higher. But from time to time, dealers are facing increasing number of cars in the warehouses, and then they begin to make very attractive offers. For example, offer to take the credit just under 1%. So often see ads – sometimes it’s worth it.

To estimate the size of monthly payments, make such a simple calculation. Suppose you bought a new car for 15000 dollars. Add 1200 for taxes and start-up costs. For example, imagine that you have no savings, and you take out a car loan for the full cost of the car for 60 months. At an annual rate of 6% you’ll be in five years to pay the monthly $ 325. For all the time you pay almost 20,000 dollars, ie by 5000 more than the cost of the machine.

Because the machine is constantly becoming cheaper, take a long term auto loan unprofitable. It happens that the five-year car losing value much of its value. So it is quite possible that your car a few years will cost less the amount that you are left to repay the car loan. Also do not forget that the older the car, the more money spent on its contents.