monthly payment in dollars, per thousand borrowed, as in “$20 (payment)per $1,000 (borrowed).” It is based on interest rate and the length of the
loan.
At 6 percent interest, for a 60-month loan, this means that each $1,000 youborrow will cost you about $20 per month in payment. It’s easy to then
figure out that $10,000 will cost you $200/month or that $25,000 will giveyou a $500/month payment. Here are the basic terms and the payments
you’ll get at 6 percent interest, per $1,000 borrowed, and rounded to theeasiest dollar amount to work with:
24mo 36mo 48mo 60mo 72mo
$45 $30 $24 $20 $17
This will help make things more clear when negotiating, especially whenyou’ve been preapproved on a loan and know your monthly budget
maximum. There are also a slew of online loan calculators and smartphoneapps that will calculate to the penny the cost of money.
FIRST TIME BORROWERS
It is very tough—especially after the financial meltdown of 2008—to get abank to take on a first-time car loan borrower. Expect to need a cosigner
when dealing with most banks, credit unions and captive financecompanies. Some do run first-time-buyer programs, so it pays to research (^)
online. They’ll be looking at the number of “trade lines” you have; each onerepresents a loan. If you’ve only had a credit card or phone bill, understand (^)