Car Affordability worksheet

1. Car price you can afford: $33,421.91

1. Work out how big a loan your payment B can pay off in 72 months. A standard formula does this, with the monthly rate i = APR ÷ 12: B × (1 − (1 + i)^−n) ÷ i

   $\frac{\mathrm{\$500.00}\times \left(1-{\left(1+0.00583333\right)}^{\mathrm{-72}}\right)}{0.00583333}$$=\mathrm{\$29,327.22}$

2. Add up everything you bring to the deal. This must cover the car, tax and fees: loan + down payment + trade-in value − amount still owed on it

   $\mathrm{\$29,327.22}+\mathrm{\$2,600.00}+\mathrm{\$4,000.00}-\mathrm{\$0.00}$$=\mathrm{\$35,927.22}$

3. The price plus its tax plus fees must equal what's available. Tax is on the full price, so price = (available − fees) ÷ (1 + tax rate)

   $\frac{\mathrm{\$35,927.22}-\mathrm{\$500.00}}{1+\mathrm{6\%}}$$=\mathrm{\$33,421.91}$

4. Work out the sales tax on the part of the price that's taxed

   $\mathrm{\$33,421.91}\times \mathrm{6\%}$$=\mathrm{\$2,005.31}$

5. Total interest: add up all the payments, then subtract the amount you borrowed

   $\mathrm{\$500.00}\times 72-\mathrm{\$29,327.22}$$=\mathrm{\$6,672.78}$

2. Car price you can afford: $33,537.83

1. Work out how big a loan your payment B can pay off in 72 months. A standard formula does this, with the monthly rate i = APR ÷ 12: B × (1 − (1 + i)^−n) ÷ i

   $\frac{\mathrm{\$500.00}\times \left(1-{\left(1+0.00583333\right)}^{\mathrm{-72}}\right)}{0.00583333}$$=\mathrm{\$29,327.22}$

2. Add up everything you bring to the deal. This must cover the car, tax and fees: loan + down payment + trade-in value − amount still owed on it

   $\mathrm{\$29,327.22}+\mathrm{\$2,600.00}+\mathrm{\$3,750.00}-\mathrm{\$0.00}$$=\mathrm{\$35,677.22}$

3. The price plus its tax plus fees must equal what's available. Tax is only on the price minus the trade-in, so price = (available − fees + tax rate × trade-in) ÷ (1 + tax rate)

   $\frac{\mathrm{\$35,677.22}-\mathrm{\$650.00}+\mathrm{5\%}\times \mathrm{\$3,750.00}}{1+\mathrm{5\%}}$$=\mathrm{\$33,537.83}$

4. Work out the sales tax on the part of the price that's taxed

   $\mathrm{\$29,787.83}\times \mathrm{5\%}$$=\mathrm{\$1,489.39}$

5. Total interest: add up all the payments, then subtract the amount you borrowed

   $\mathrm{\$500.00}\times 72-\mathrm{\$29,327.22}$$=\mathrm{\$6,672.78}$

3. Car price you can afford: $33,167.60

1. Work out how big a loan your payment B can pay off in 72 months. A standard formula does this, with the monthly rate i = APR ÷ 12: B × (1 − (1 + i)^−n) ÷ i

   $\frac{\mathrm{\$500.00}\times \left(1-{\left(1+0.00833333\right)}^{\mathrm{-72}}\right)}{0.00833333}$$=\mathrm{\$26,989.33}$

2. Add up everything you bring to the deal. This must cover the car, tax and fees: loan + down payment + trade-in value − amount still owed on it

   $\mathrm{\$26,989.33}+\mathrm{\$2,600.00}+\mathrm{\$6,500.00}-\mathrm{\$0.00}$$=\mathrm{\$36,089.33}$

3. The price plus its tax plus fees must equal what's available. Tax is on the full price, so price = (available − fees) ÷ (1 + tax rate)

   $\frac{\mathrm{\$36,089.33}-\mathrm{\$600.00}}{1+\mathrm{7\%}}$$=\mathrm{\$33,167.60}$

4. Work out the sales tax on the part of the price that's taxed

   $\mathrm{\$33,167.60}\times \mathrm{7\%}$$=\mathrm{\$2,321.73}$

5. Total interest: add up all the payments, then subtract the amount you borrowed

   $\mathrm{\$500.00}\times 72-\mathrm{\$26,989.33}$$=\mathrm{\$9,010.67}$

4. Car price you can afford: $22,697.98

1. Work out how big a loan your payment B can pay off in 36 months. A standard formula does this, with the monthly rate i = APR ÷ 12: B × (1 − (1 + i)^−n) ÷ i

   $\frac{\mathrm{\$500.00}\times \left(1-{\left(1+0.00666667\right)}^{\mathrm{-36}}\right)}{0.00666667}$$=\mathrm{\$15,955.90}$

2. Add up everything you bring to the deal. This must cover the car, tax and fees: loan + down payment + trade-in value − amount still owed on it

   $\mathrm{\$15,955.90}+\mathrm{\$3,000.00}+\mathrm{\$5,000.00}-\mathrm{\$0.00}$$=\mathrm{\$23,955.90}$

3. The price plus its tax plus fees must equal what's available. Tax is only on the price minus the trade-in, so price = (available − fees + tax rate × trade-in) ÷ (1 + tax rate)

   $\frac{\mathrm{\$23,955.90}-\mathrm{\$550.00}+\mathrm{4\%}\times \mathrm{\$5,000.00}}{1+\mathrm{4\%}}$$=\mathrm{\$22,697.98}$

4. Work out the sales tax on the part of the price that's taxed

   $\mathrm{\$17,697.98}\times \mathrm{4\%}$$=\mathrm{\$707.92}$

5. Total interest: add up all the payments, then subtract the amount you borrowed

   $\mathrm{\$500.00}\times 36-\mathrm{\$15,955.90}$$=\mathrm{\$2,044.10}$

5. Car price you can afford: $43,551.64

1. Work out how big a loan your payment B can pay off in 72 months. A standard formula does this, with the monthly rate i = APR ÷ 12: B × (1 − (1 + i)^−n) ÷ i

   $\frac{\mathrm{\$600.00}\times \left(1-{\left(1+0.005\right)}^{\mathrm{-72}}\right)}{0.005}$$=\mathrm{\$36,203.71}$

2. Add up everything you bring to the deal. This must cover the car, tax and fees: loan + down payment + trade-in value − amount still owed on it

   $\mathrm{\$36,203.71}+\mathrm{\$3,500.00}+\mathrm{\$6,000.00}-\mathrm{\$0.00}$$=\mathrm{\$45,703.71}$

3. The price plus its tax plus fees must equal what's available. Tax is only on the price minus the trade-in, so price = (available − fees + tax rate × trade-in) ÷ (1 + tax rate)

   $\frac{\mathrm{\$45,703.71}-\mathrm{\$650.00}+\mathrm{4\%}\times \mathrm{\$6,000.00}}{1+\mathrm{4\%}}$$=\mathrm{\$43,551.64}$

4. Work out the sales tax on the part of the price that's taxed

   $\mathrm{\$37,551.64}\times \mathrm{4\%}$$=\mathrm{\$1,502.07}$

5. Total interest: add up all the payments, then subtract the amount you borrowed

   $\mathrm{\$600.00}\times 72-\mathrm{\$36,203.71}$$=\mathrm{\$6,996.29}$

6. Car price you can afford: $43,011.59

1. Work out how big a loan your payment B can pay off in 72 months. A standard formula does this, with the monthly rate i = APR ÷ 12: B × (1 − (1 + i)^−n) ÷ i

   $\frac{\mathrm{\$640.00}\times \left(1-{\left(1+0.005\right)}^{\mathrm{-72}}\right)}{0.005}$$=\mathrm{\$38,617.29}$

2. Add up everything you bring to the deal. This must cover the car, tax and fees: loan + down payment + trade-in value − amount still owed on it

   $\mathrm{\$38,617.29}+\mathrm{\$3,000.00}+\mathrm{\$4,600.00}-\mathrm{\$0.00}$$=\mathrm{\$46,217.29}$

3. The price plus its tax plus fees must equal what's available. Tax is on the full price, so price = (available − fees) ÷ (1 + tax rate)

   $\frac{\mathrm{\$46,217.29}-\mathrm{\$625.00}}{1+\mathrm{6\%}}$$=\mathrm{\$43,011.59}$

4. Work out the sales tax on the part of the price that's taxed

   $\mathrm{\$43,011.59}\times \mathrm{6\%}$$=\mathrm{\$2,580.70}$

5. Total interest: add up all the payments, then subtract the amount you borrowed

   $\mathrm{\$640.00}\times 72-\mathrm{\$38,617.29}$$=\mathrm{\$7,462.71}$

7. Car price you can afford: $31,094.70

1. Work out how big a loan your payment B can pay off in 48 months. A standard formula does this, with the monthly rate i = APR ÷ 12: B × (1 − (1 + i)^−n) ÷ i

   $\frac{\mathrm{\$620.00}\times \left(1-{\left(1+0.00583333\right)}^{\mathrm{-48}}\right)}{0.00583333}$$=\mathrm{\$25,891.32}$

2. Add up everything you bring to the deal. This must cover the car, tax and fees: loan + down payment + trade-in value − amount still owed on it

   $\mathrm{\$25,891.32}+\mathrm{\$3,600.00}+\mathrm{\$4,000.00}-\mathrm{\$0.00}$$=\mathrm{\$33,491.32}$

3. The price plus its tax plus fees must equal what's available. Tax is only on the price minus the trade-in, so price = (available − fees + tax rate × trade-in) ÷ (1 + tax rate)

   $\frac{\mathrm{\$33,491.32}-\mathrm{\$500.00}+\mathrm{7\%}\times \mathrm{\$4,000.00}}{1+\mathrm{7\%}}$$=\mathrm{\$31,094.70}$

4. Work out the sales tax on the part of the price that's taxed

   $\mathrm{\$27,094.70}\times \mathrm{7\%}$$=\mathrm{\$1,896.63}$

5. Total interest: add up all the payments, then subtract the amount you borrowed

   $\mathrm{\$620.00}\times 48-\mathrm{\$25,891.32}$$=\mathrm{\$3,868.68}$

8. Car price you can afford: $24,510.74

1. Work out how big a loan your payment B can pay off in 36 months. A standard formula does this, with the monthly rate i = APR ÷ 12: B × (1 − (1 + i)^−n) ÷ i

   $\frac{\mathrm{\$500.00}\times \left(1-{\left(1+0.00333333\right)}^{\mathrm{-36}}\right)}{0.00333333}$$=\mathrm{\$16,935.38}$

2. Add up everything you bring to the deal. This must cover the car, tax and fees: loan + down payment + trade-in value − amount still owed on it

   $\mathrm{\$16,935.38}+\mathrm{\$3,200.00}+\mathrm{\$6,100.00}-\mathrm{\$0.00}$$=\mathrm{\$26,235.38}$

3. The price plus its tax plus fees must equal what's available. Tax is only on the price minus the trade-in, so price = (available − fees + tax rate × trade-in) ÷ (1 + tax rate)

   $\frac{\mathrm{\$26,235.38}-\mathrm{\$620.00}+\mathrm{6\%}\times \mathrm{\$6,100.00}}{1+\mathrm{6\%}}$$=\mathrm{\$24,510.74}$

4. Work out the sales tax on the part of the price that's taxed

   $\mathrm{\$18,410.74}\times \mathrm{6\%}$$=\mathrm{\$1,104.64}$

5. Total interest: add up all the payments, then subtract the amount you borrowed

   $\mathrm{\$500.00}\times 36-\mathrm{\$16,935.38}$$=\mathrm{\$1,064.62}$

9. Car price you can afford: $37,062.13

1. Work out how big a loan your payment B can pay off in 60 months. A standard formula does this, with the monthly rate i = APR ÷ 12: B × (1 − (1 + i)^−n) ÷ i

   $\frac{\mathrm{\$630.00}\times \left(1-{\left(1+0.005\right)}^{\mathrm{-60}}\right)}{0.005}$$=\mathrm{\$32,587.10}$

2. Add up everything you bring to the deal. This must cover the car, tax and fees: loan + down payment + trade-in value − amount still owed on it

   $\mathrm{\$32,587.10}+\mathrm{\$2,200.00}+\mathrm{\$5,500.00}-\mathrm{\$0.00}$$=\mathrm{\$40,287.10}$

3. The price plus its tax plus fees must equal what's available. Tax is only on the price minus the trade-in, so price = (available − fees + tax rate × trade-in) ÷ (1 + tax rate)

   $\frac{\mathrm{\$40,287.10}-\mathrm{\$700.00}+\mathrm{8\%}\times \mathrm{\$5,500.00}}{1+\mathrm{8\%}}$$=\mathrm{\$37,062.13}$

4. Work out the sales tax on the part of the price that's taxed

   $\mathrm{\$31,562.13}\times \mathrm{8\%}$$=\mathrm{\$2,524.97}$

5. Total interest: add up all the payments, then subtract the amount you borrowed

   $\mathrm{\$630.00}\times 60-\mathrm{\$32,587.10}$$=\mathrm{\$5,212.90}$

10. Car price you can afford: $27,359.57

1. Work out how big a loan your payment B can pay off in 60 months. A standard formula does this, with the monthly rate i = APR ÷ 12: B × (1 − (1 + i)^−n) ÷ i

   $\frac{\mathrm{\$420.00}\times \left(1-{\left(1+0.005\right)}^{\mathrm{-60}}\right)}{0.005}$$=\mathrm{\$21,724.74}$

2. Add up everything you bring to the deal. This must cover the car, tax and fees: loan + down payment + trade-in value − amount still owed on it

   $\mathrm{\$21,724.74}+\mathrm{\$3,750.00}+\mathrm{\$4,400.00}-\mathrm{\$0.00}$$=\mathrm{\$29,874.74}$

3. The price plus its tax plus fees must equal what's available. Tax is on the full price, so price = (available − fees) ÷ (1 + tax rate)

   $\frac{\mathrm{\$29,874.74}-\mathrm{\$600.00}}{1+\mathrm{7\%}}$$=\mathrm{\$27,359.57}$

4. Work out the sales tax on the part of the price that's taxed

   $\mathrm{\$27,359.57}\times \mathrm{7\%}$$=\mathrm{\$1,915.17}$

5. Total interest: add up all the payments, then subtract the amount you borrowed

   $\mathrm{\$420.00}\times 60-\mathrm{\$21,724.74}$$=\mathrm{\$3,475.26}$