Purchasing a new car will have a big impact on your monthly expenses. If there is any pending mortgage or student loan you are currently paying off, it is wise to use an auto finance calculator before making arrangements with dealers.

Car buyers should be wise and prepare themselves with the cost of acquiring a new vehicle. An auto finance calculator will help a buyer examine his loan amortization schedule, as most loans last around 4–5 years. Buyers with existing mortgage should take into consideration that with an existing house loan and incoming car loan, their income would be cut down to at least half due to the weight of the expenses. Car buyers should ensure they can still survive with the amount of money that will be left after debts have been paid off. Will it be enough to sustain other expenses such as tuition fees, vacations, and home repairs? Knowing how much will be spent monthly will put buyers in a perspective that will allow them to fully gauge their capacity to pay off a loan.

Making sure you have a stable income is vital. Always ask yourself if you will still be able to afford paying off the loan years from now. For buyers with children, this may mean they will have to wait a little longer before purchasing a new car. If affordability is an issue though, a used car is always feasible for those who have tighter budget.

There are quite a few car loans that are made flexible and affordable for more people. Make a good research and sift the good ones. There are many payment terms designed to make the purchase and payment attainable amidst the not so good condition of the economy right now. In situations where there is an existing mortgage, buyers can still afford to get another loan by paying a larger amount of down payment to reduce the monthly costs, or get a used car instead.