Free Vehicle Purchase Comparison Worksheet: Compare Cars by Total Cost with Car Loan Payments, a Used Car Inspection and Test Drive Checklist, and a Lease vs Buy Calculator (PDF, Word, Excel)

What is on the vehicle purchase comparison worksheet

Monthly payment

Worked out from the amount financed (price plus tax and fees, minus trade-in and down payment), the APR and the number of months.

Total interest

All the payments minus the amount financed: the cost of borrowing.

Total cost over years kept

Down payment, loan payments made in that time, and insurance and fuel for each year. It leaves out maintenance and depreciation, which you can compare with the expected value at the end.

Lease costs

Due at signing, monthly payments, other fees and the disposition fee or charges for extra miles at the end.

Equity

What the car is worth minus what is still owed on the loan; when buying, it is value you keep.

Comparing cars on total cost

Write down the out-the-door price, including taxes and fees, for each car rather than the advertised price, and get the loan rate from your bank or credit union before visiting dealers so you can compare. Shorter loans have higher payments but much less interest; very long loans can leave you owing more than the car is worth. The worksheet adds insurance and fuel for the years you plan to keep the car which is where a more efficient or cheaper-to-insure car can win even if it costs more to buy. Get insurance quotes for each car using the car insurance comparison checklist, and see every payment of the loan on the loan amortization schedule.

Inspecting a used car

Look at a used car in daylight, with the engine cold, and take the checklist. Check that the VIN on the car matches the title and the history report, and look up open recalls. Walk around for uneven paint or panel gaps that suggest accident repairs, check the tires and look under the hood for leaks. Test drive for at least 20 minutes on city streets and the highway. Then pay an independent mechanic for a pre-purchase inspection; it costs little compared with the problems it can find, and any repairs needed are a good basis for negotiating.

Lease or buy?

Leasing usually has lower monthly payments and a new car every few years, but you never own it, there are mileage limits and wear charges, and you always have a payment. Buying costs more per month at first, but once the loan is paid off the car is yours, and many people keep cars for eight years or more. To compare fairly, the calculator looks at the same period for both: the lease cost against the cost of buying minus the equity you would have at the end. This is a simplified comparison and not financial advice; also consider your budget on the monthly budget planner.

Editing the files

The PDFs are fillable. In Excel, enter years kept, miles and gas price once; payments, interest and total costs fill in for each car.

Questions

How do I compare two cars?

Compare the total cost: out-the-door price, loan interest, insurance and fuel over the years you will own it, plus reliability, safety and how well it fits your needs.

How is a car loan payment calculated?

From the amount financed, the monthly interest rate (APR divided by 12) and the number of months, using the standard loan payment formula.

What should I check when buying a used car?

Title and history report, recalls, signs of accident repair or rust, tires, fluids and leaks, all features working, a thorough test drive and a mechanic's inspection.

Is it cheaper to lease or buy a car?

Leasing is often cheaper over a few years, but buying is usually cheaper if you keep the car for a long time. Compare both over the same period.

What is a disposition fee?

A fee some leases charge when you return the car at the end of the lease.