Did you know that your monthly vehicle payment doesn't
buy you a car? It buys you a lump sump of cash. In Don't Get Taken,
I call this "loan cash." The "available cash" you have to purchase a
vehicle is composed of your loan cash, your down payment, the equity
(if any) in your trade-in, and any other cash such as a rebate.
Determine Loan Cash
If you have decided how much you wish to pay monthly
and for how many months/years and have shopped financing sources to
find the best rates, you can determine how much money your payment
will buy using the handy online Loan Calculator provided by University
Federal Credit Union. Go to Wheels 101
and click on "other calculators."
If you know the lump sum you need to borrow, the
interest rate and the month/years you want to pay, you can also use
this Loan Calculator to find out your payment.
Determine Available Cash
Wheels 101 also provides a handy calculator
that enables you to determine how much Available Cash you have to
buy a vehicle. Use it to help you stay in budget!
If your company doesn't have a credit union
or a relationship with one that allows you to join, you may still be
eligible for credit union membership.
CUNA, the Credit Union National Association,
has two pages on their WEB site that allows you to track down an eligible
credit union. Go to:
www.cuna.org/data/consumer/whatis/join/sixways.html or www.cuna.org/data/consumer/culinks/cu_locator.html.
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