Your 5-minute guide to car expenses

Tricks of the trade

Will you trade your old car? Selling can be a hassle, and it's not always worth the trouble. But sometimes it is. Consider:

• Is your old car worth less than $5,000 or so and paid off? Sell it yourself. A new-car dealer wouldn't be generous (probably it would go to auction rather than stay on his lot), yet cars in that price range are a sweet spot for buyers who can't afford to finance -- and for smart folks who don't want to go into debt.

• Selling a car worth a substantial sum is more difficult. You can't offer the kind of financing and dickering room a dealer can. And selling a car on which you still owe money can be a lot of work. (See "How to sell a car you don't own.")

• A deciding factor on trade-ins may be your state's sales-tax policy. Some states tax only the difference between the sale price of the new car and the trade-in value of the old. In others, you pay sales tax on the full value of the new car. A $20,000 trade-in in Washington state, for example, would save a buyer at least $1,460 in sales tax.

• Remember that the value of your old car is what someone will pay to buy it, not necessarily what a dealer will give you in trade. If a dealer offers you $2,000 above Blue Book for your car, he's making up the difference elsewhere.

In the hot seat

• If you have arranged financing in advance, you can drive a harder bargain or simply walk away. If a dealer can offer a better deal, great, but you won't be compelled to buy at the only place that would finance you.

• If you hate to haggle, you can try either a no-haggle dealership or a service that does the haggling for you. (See "Car dealers stake out haggle-free zones" and the video "A deal at a fixed price.")

• Buy a car, not a payment. Negotiate the total price of the car. (Use the chart below as a rule of thumb to figure payments.) When the salesman asks about monthly payments, say, "I'm more interested in the price of the car right now."

Estimate your payments as you shop

Here's what you'll pay for each $1,000 you borrow:

At 0.0% APR*	At 2.9% APR	At 5.9% APR
$41.66 for 24 months	$42.94 for 24 months	$44.28 for 24 months
$27.78 for 36 months	$29.04 for 36 months	$30.38 for 36 months
$20.83 for 48 months	$22.09 for 48 months	$23.44 for 48 months
$16.67 for 60 months	$17.92 for 60 months	$19.29 for 60 months
$13.89 for 72 months	$15.15 for 72 months	$16.53 for 72 months
At 0.9% APR	At 3.9% APR	At 6.9% APR
$42.06 for 24 months	$43.38 for 24 months	$44.73 for 24 months
$28.16 for 36 months	$29.48 for 36 months	$30.83 for 36 months
$21.22 for 48 months	$22.53 for 48 months	$23.90 for 48 months
$17.05 for 60 months	$18.37 for 60 months	$19.75 for 60 months
$14.27 for 72 months	$15.60 for 72 months	$17.00 for 72 months
At 1.9% APR	At 4.9% APR	At 7.9% APR
$42.50 for 24 months	$43.83 for 24 months	$45.18 for 24 months
$28.60 for 36 months	$29.93 for 36 months	$31.29 for 36 months
$21.65 for 48 months	$22.98 for 48 months	$24.37 for 48 months
$17.48 for 60 months	$18.83 for 60 months	$20.23 for 60 months
$14.71 for 72 months	$16.06 for 72 months	$17.48 for 72 months

*Annual percentage rate

Continued: Leasing option

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