As an alternative, one could handle the trade in equity differently. You could choose not to put that value in the sales price and instead treat it just like cash. If we were to do that, we would expect to see an output of $355.82 per month with $4768.91 due at sale.
If we change the sales price accordingly
with $0 in the down payment, the output is
Note that there is a very large difference in monthly and drive-off here.
This is a very common error when people use the calculator. They plug in the values and the drive-off is off by thousands. As such, the monthly is incredibly different and they think they’re being charged more. You must adjust the down payment amount to make either the monthly or drive-off match
By changing the down payment to $3150, we get the monthly just about right
We have a drive off now of $5024 compared to the $4768.91 we were expecting. The $45 difference we had has grown to $255. In this case, because of the sales tax being applied to the trade equity that wasn’t being applied before. In different states, sales tax on trade equity is treated differently. Florida appears to not tax the trade equity.