# Average Car Payment What you need to Know #instant #online #loans

#monthly car payment
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# Average Car Payment

## How Do You Calculate Your Average Car Payment?

Your average car payment is based on very simple math. It tells us how much our monthly payment would average out to be when we consider the down payments and/or any extra fees required to lease the car. To calculate this, we will need to know the total cost of our lease. The total cost of our lease is determined by adding any down payments and additional fees to the total cost of our monthly lease payments. The total cost is a much honest take asessment of what the car is really costing us, but we can take it a step further and average it out over the months we re making payments on the car.

Total Lease Cost =

• ((Monthly Payments x Lease Months)+(Down Payment + Extra Fees))

The result is the total cost divided by the number of months in the lease term.

Average Car Payment =

• (Total Cost Of Lease / Lease Months)

So, can you see why—the average car payment—is such an important figure? If I leased a 2011 Honda Accord EX for \$300 a month on a 36 month lease, but had to put \$2,000 down to do it, my average monthly cost is \$355.55. (\$300 x 36) + \$2,000) / 36) That s \$55.00 a month higher than the advertised payment of \$300. While Down payments or capitalized cost reductions do lower our monthly payment, they generally don t reduce our total cost of leasing the vehicle. Those down payments underneath the fine print of lease deals are subtle, but effective marketing ploys to make us feel as though our monthly cost is lower than it really is. Whether we are buying or leasing cars, it is important not to be influenced by the marketing psychology behind low monthly car payments. Some car manufacturers like Honda have recognized that some consumers don t like the idea of paying money up front on a car lease and they have adjusted their car lease specials accordingly. Look for No-Money-Down-Car-Lease-Specials .

### Can You Negotiate Your Average Car Payment?

#### What is the Average National Car payment

According to the Wiki Answers website, the average payment in the United States is between \$380 \$460 per month. Wow you can lease a really nice, luxury car; BMW, Infiniti, Acura, Cadillac etc. for that kind of money. Unfortunately, a \$380 car payment doesn t get you much in a auto-loan purchase situation. Let s assume you acquire a great deal on a 60-Month, 3.9% interest rate and put nothing down (usually not possible with a purchase) Even under those best circumstances, you re looking at \$21,000 car. Hello Civic, Corolla, Elantra, etc.  And sadly, the national average car payment range does not take into account the down payment used to acquire that \$380 \$460 monthly payment. Most people are putting anywhere between \$500 \$4,000, or more when purchasing a car on loan. The real. national U.S car payment when down payments are figured in to that number is probably closer to \$500 \$650. Whether you lease or buy your next car, realize that there is more than one way to calculate and understand your actual payment and compare it to the national average.

### Even Old Cars come with an Average Car Payment

Many so-called financing experts don t take into account the net cost of owning an old car. Celebrities such as Dave Ramsey are continually emphasizing how important it is to own your car outright. This type of short-sighted thinking completely neglects the fact that old cars are liabilities. You had better have AAA if you are going to drive an old car because it is not a question of if it will break down, but when. New cars are not only more reliable, but offer a degree of piece of mind, comfort, safety, and security that is simply not possible driving used cars. Dave Ramsey likes to preach to us that you can Live without Car Payments. but he fails to tell us that there is always an average car payment. Driving an old car just means you are paying the bills to someone else besides a bank, mainly an expensive repair shop. If you ve ever replaced a timing belt, alternator, radiator, valve covers, etc. then you know how expensive it can be to continue driving an old car. It always gets back to average car payment. What are you really paying a month for your car? When you consider the safety, security, comfort and financial certainty behind a new automobile it makes more sense then ever to lease new cars every 3-4 years.

## Car Lease Deals Average Payment by Month

The average car payment is the key number that goes into the LVR formula in the monthly car lease ratings. Check here each and every month to find the best car lease bang for your buck.

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