1. How to finance a car So you need a loan…

2. What is a down payment? This is the amount you already have saved up in cash to pay towards your car.

3. What amount should the down payment be? 20% So how do you calculate what the down payment amount will be? Multiply the total cost by.20

4. Help me calculate… What is the down payment for the following… 20% Down Payment O Truck Price $13,000 __________ O Sedan Price $23,000 __________ O Coupe Price $18,500 __________

5. Help me calculate… What is the down payment for the following… 15% Down Payment O Truck Price $10,500 __________ O Sedan Price $8,000 __________ O Coupe Price $22,500 __________

6. What is interest? (when we talk about car loans?) The amount you have to pay to barrow the money to pay for the car.

7. So, how do we calculate the monthly payments? 1. Purchase price of the vehicle 2. Add interest 3. How long is the loan 4. Did you make a down payment

8. You will plug all of these factors into the loan calculator…

9. You will get something that looks like…

10. This will tell you… O Your monthly payments O Your total loan amount O The down payment O Break down of your payment O for interest O for principal O Total interest for the whole loan

11. Lets calculate a few together… Car 1 - Purchase Price $9000 - Interest Rate 9% - 24 months - Down Payment is 15% What are my monthly payments?

12. Lets calculate a few together… Car 2 - Purchase Price $12500 - Interest Rate 10% - 36 months - Down Payment is 15% What are my monthly payments?

13. Lets calculate a few together… Car 3 - Purchase Price $7000 - Interest Rate 8% - 48 months - Down Payment is 20% What are my monthly payments? What is the total loan amount?

14. Lets calculate a few together… Car 4 - Purchase Price $17900 - Interest Rate 9% - 60 months - Down Payment is $1,790 What are my monthly payments? What is the total loan amount? What is the total interest?

15. Lets calculate a few together… Car 5 - Purchase Price $27500 - Interest Rate 6% - 48 months - Down Payment is $5500 What are my monthly payments? What is the total loan amount? What is the total interest?

16. Lets calculate a few together… Car 6 - Purchase Price $14000 - Interest Rate 12% - 60 months - Down Payment is 10% What are my monthly payments? What is the total loan amount? What is the total interest?