You have driven your current car, handed down from your parents and older siblings, thru high school and college and wish to capitalize on the new job and salary by treating yourself to a new car. You need to consider several variables such as what car to buy, how much to pay, what the down payment will be, and how long you want to make the monthly payment.

Since you’ve had considerable costs associated with repairs to your current, well-used, vehicle, you decide you want a new car. You decide on a new 2023 Honda Accord Touring Hybrid w/ BSI. You choose the San Marino Red with grey interior. With the accessories and packages, you have selected, the total cost is $40,420. The dealership has generously offered you $7500 for the trade in of your current vehicle.

Your county sales tax is 7.5%, you have a 20% down payment, and you will finance the car 5-years loan at 4.90% interest.

Information you need to find the transaction costs and, ultimately, the monthly payment:

What is the sales tax?

What is the required down payment?

What will the monthly payment be?

What is the total cost of the deal over the life of the loan?