Car finance calculations always help you getting an idea about a particular deal. It extensively helps you in Buying and leasing of a Car. Once you calculate the numbers, choosing of a dealership becomes so easy.

There are special types of calculators available for this purpose. You can find them on many online financial web sites. But you need to do them at your own as well because you are not certain about the working of your computers. For this purpose this article has been written, it will definitely help you learn the proper systematic procedures to do the calculations.

### Figuring out Sales Tax

Several charges, **taxes and licensing fees** are usually not quoted in the Car payments. Later, when it comes to pay them out, most of the people find themselves in financial disputes. Therefore, figure out the net amount before finalizing an Auto deal.

### Car finance calculations

It depends upon you that which Car you are going to buy. Just consider the actual price of the Car, let’s say $20,000. Add up the destination fee that is normally between $300 and $600. Keep in mind that no matter which Car you buy, you have to pay a destination fee in anyway. Sum up the amounts. Find the percentage of your state’s sales tax.

You have to convert it in a decimal number so divide it with 100. Suppose the percentage was 8%, after the division you will have 0.08. Now you have to use certain formulae step by step. All are illustrated below!

### Formulae

Taking the above example, the cost of the Car is $20,000. Total of the options is $600. Destination fee of the Car is $495. Let’s put these values to the formula.

### Cost of the Car + options + destination fee X sales tax

$20,000 + $600 + $495 = $21,095

In order to find out the sales tax, we had considered the state’s sale tax to be 8%. Multiply the above value with 0.08.

$21,095 X .08 = $1,687.60

Now add the cost of the Car to this value, you will have the grand total i.e.

$1,687.60 + $20,000 = $22,782.60.

### Figuring out Title and License Fees

Car dealers often keep the DMV charges unclear to the customers. It is because there are be added up to the grand total and they do affect the net amount. Therefore, you must realize this fact and keep yourself ready for the payment. Otherwise, they will apparently shock you later!

The DMV fees are mostly from 1% to 15% of the purchase price of the Car, in most of the countries. In order to find out the DMV fees, recall the previous formula cost of the Car + options + destination fee. Multiply the obtained value with 0.01. If you are a conservative type of person, multiply it with 0.015 i.e. $21,095 X .015 = $316.43

Add this amount to the grand total we got above. Now this is the actual amount you have to pay. Confirm the deal if you really feel that you can afford this Car.

### Figuring out Auto Loan Payments

When you take some Loan, you have to pay some additional amount as the interest on its payback. Interest is calculated through a complicated calculation known as “amortization”. This can be done with the help of special calculators which are available on different financing websites. Hence the accurate monthly payment for your Auto Loan can easily be figured out.