I want to buy a car
A car costs more than its price tag. This page helps you see the monthly payment, fuel and the real cost before you sign. It takes about 15 minutes.
- 1
Set your car budget
Know what you can spend each month before you visit a dealer. Type your monthly take-home pay.
How should I split my income between needs, wants and savings?
Set my budget →Tip: Include insurance, fuel, parking and repairs, not just the loan payment.
- 2
Check your monthly car payment
An auto loan lets you pay for the car over time. Type the price, down payment, trade-in, interest rate and loan length.
How much will my car payment be each month?
Check my car payment →Tip: A longer loan lowers the payment but raises the total interest. Try a shorter loan too.
- 3
Buying in India? Check your car loan EMI
EMI is the fixed amount you pay every month. Type the loan amount, interest rate and years in rupees.
How much will my car loan cost each month?
Find my car EMI →Tip: Ask the lender for the full on-road price and all fees, not only the interest rate.
- 4
Compare it with a lease
With a lease you pay to use a car for a few years, then give it back. Type the price, residual value, money factor and term.
How much will my car lease cost each month?
Check a lease →Tip: Leases have mileage limits. Going over can cost extra, so think about how much you drive.
- 5
Check how much fuel the car uses
Fuel use changes your real cost a lot. Type the distance you drove and the fuel you used to see your real mileage.
How much fuel does my car really use?
Check my mileage →Tip: Real-world mileage is often lower than the number on the sticker, especially in city traffic.
- 6
Work out your fuel cost
See how much driving will cost. Type the distance, the car's mileage and the fuel price.
How much will fuel cost for my trip?
Count my fuel cost →Tip: Compare two cars by running the same yearly distance for each one.
Questions people ask
How much car can I afford?
A common rough guide is to keep all car costs, including payment, insurance and fuel, to around 10% to 15% of your take-home pay. A bigger down payment and a shorter loan help keep it under control.
Is it better to lease or buy a car?
Leasing often has lower monthly payments, but you do not own the car at the end. Buying costs more each month at first, but the car is yours once the loan is paid. People who keep cars a long time often save by buying.
How long should a car loan be?
Shorter loans, such as 3 to 5 years, cost less interest in total. Very long loans can leave you owing more than the car is worth. Pick the shortest length with a payment you can manage.
Should I get a loan from the dealer or a bank?
It is smart to get a loan offer from a bank or credit union before you shop. Then you can compare it with the dealer's offer and pick the cheaper one.