What does your car really cost a month?
The payment is one line. Add insurance, gas, upkeep and fees, and see the number you actually pay, all in.
Example: Sam's numbers from the video. Replace them with yours.
All in, every month
$0 /mo
The payment
$0
Everything else
$0
Loan interest, total
$0
Assumes 7% a year after inflation, compounded monthly, over the length of the loan. Markets rise and fall; this is not guaranteed.
The loan what the dealer talks about
| Line | Amount |
|---|---|
| Price plus tax and dealer fees you're financing | $ |
| Cash you put in plus what they give you for your old car | $ |
| On the loan paperwork, often 6% to 12% | % |
| The number on your loan statement | $ |
| Monthly paymentWorked out from the lines above | $0 |
Running it what the dealer doesn't
| Line | Amount |
|---|---|
| Per month. Get a quote for the new car before you sign; newer cars often cost more to insure | $/mo |
| US average is about 1,100 | |
| Combined figure for the car | |
$ | |
| Per month | $/mo |
| GasWorked out per month | $0 |
| Per month. Oil, brakes, tires and repairs spread over the year | $/mo |
| Per year. Shown as $0 a month | $/yr |
| Per month, if you pay them | $/mo |
Compare with my current car optional
Thinking of upgrading? The gap between what your current car costs all in and what the new one costs is the real price of the upgrade.
| Current car | Amount |
|---|---|
| 0 if it's paid off | $/mo |
$/mo | |
$/mo | |
| Older cars often cost a bit more here | $/mo |
$/yr | |
$/mo | |
| Current car, all in | $0 |
Your take-home pay optional
| After tax. Shows the car as a share of your month | $/mo |
The one question to ask at the dealership
When they ask "What payment works for you?", answer with a question: "What will this car cost me a month, all in?"
For education only, not financial advice. Your numbers never leave your browser.
The Money Defaults Audit · The Paycheck Effect on YouTube