Used Cars: purchasing a new/used car, capital one credit card, phx az

Question
Hello,

I have a question about buying a car. My car is twelve years old and I am bit rusty on the car purchasing.  I will try and explain my question as best as I can.

I have been reading a lot of information such as tips etc. and one of the things that was mentioned was that a person should avoid telling the car salesman what monthly payment they were looking for  - and instead focus on the entire car purchasing price.
But, my dilemma is that – the car payment is my main focus. It is very important to me to not go over a certain amount of money on the monthly payment. So my question is this. How do I figure out a guesstimate of the monthly payment? Would I take the amount (example: $10,000) on a 60 month loan then just divide it up? So, even if I do this, I would still have to negotiate the price plus tax and licensing etc. I don’t want to negotiate a price and go through most of the motions only to end up more than what I can or want to pay.
But, don’t get me wrong, I won’t go over what I can pay. I was lucky enough to have recently get a raise of a certain amount and that is literally all I have for a car payment. So, I either get the rate I need or I go elsewhere.  And next, I have a good job history, and car payment history but unfortunately I do have some old hospital debts on my credit and that will likely hurt my score too. And I realize that I cannot be overly choosy if my credit is not perfect but my car history and job are. Seven years at my job and my car finance history is still on my credit report but will come off soon since I have had my car paid off for almost six years now.

Any answers on how to go about figuring out what car payment would be? This will be a purchase in Phx, AZ

Any help would be greatly appreciated. Thank you and have a great day!

p.s. I would be trading in my car (low bluebook is 1,000-1,200) and don't laugh, but all I have for a down is 500.00 and I also do have a Capital one Credit Card. Capital one also offers financing. I wonder, if I used Capital One, would I need a down payment. They advertise walking in and using your certificate and that is it basically. But I always thought that Dealers needed some sort of down payment?

Answer
Ok.....first and foremost what you heard is true, do not discuss payments.
And let me preface all that I am fixing to say with this, I have about 15 years in exactly this, trust me on everything I say, because I know EXTREMELY well how these dealerships work.
First off is this, if you have a local bank or credit union that you have some kind of a relationship with, go to them, and get preapproved for a said amount.
Pending on your credit score you may have to finance at a dealership, but that needs to be your very last option, because the financing is where they bank, and take you to the cleaners.
So even though it may end up in you getting your credit pulled twice, go to a bank or credit union first.  Medical bills that old arent THAT damaging to your credit.  Your good history should override that, at a local bank or credit union.
Now once you are in the hands of a bank, they will tell you what rate to expect(as per year of the vehicle), and they can tell you all that you could possibly want to know about payments.
Ok...so by now you should have some kind of idea about what price range you need to shop.
Do all of the research you can online, ie: Craigslist, Autotrader.com, KBB.com, and pinpoint a certain year, make and model of a vehicle that you are looking for.
Then you can start your rounds to dealers, if by chance you dont feel comfortable buying from and individual, or a smaller used car lot.  Whatever you do, and no matter where you buy, find a reputable independent mechanic, to do a inspection on the vehicle, cking for brakes, intake leaks, and oil leaks.  In the event you end up at a dealership, make sure you make it clear with your salesman that you are a cash buyer, and you do not need their financing.  This is assuming that the bank is willing to finance you, and you in fact do not need their financing.
If I were you I would use Nadaguides.com to know the value of a vehicle.  Just book it out and pending what car you decide on, you should be able to purchase this vehicle somewhere around NADA Trade in Value.  If you need any help on this process feel free to email me with what you got, and I can help you out through this process.  Just make sure and have it narrowed down quite a bit, like when you feel you are fixing to complete this transaction, email me with EVERYTHING about it, and I will advise you on what I think. Dont ask me about 10 different opitions, you need to do the research yourself, it is that information that gives you the confidence to battle a salesman on the lot. Oh...and do this if you can avoid even bringing your trade in to these dealerships, do not let them think you have a trade in, beat them down on price, then throw in the trade in at the end, they will love that.....(NOT), it used to drive me in sane, until I figured out how to deal with it....lol  If I can help any further, just let me know.