How to tell if a monthly car payment is actually a good deal

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If you're looking for a demonstration of the adage “it's expensive to be poor”, consider buying a car. If you have your eye on a car that costs $35,000 with all expenses included and you have $35,000 in your bank account, that's what you pay for the car. If you don't have the money, let's say you deposit $5,000 and fund the remaining $30,000 with a five-year loan with an annual percentage rate (APR) of 6.9 % You'll end up paying $5,557.29 in interest, which means that, including your down payment, your $35,000 car will cost you $40,557.29.

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