Car Finance Calculator - Compare & Save
This car finance calculator helps you find the best deal in auto financing. You can vary up to 5 different interest rates and loan terms for your new or used vehicle in any combination allowing you to compare monthly payments and interest costs.
Just enter the auto loan amount and then enter one or more term and interest rate combinations. The calculator does the rest...
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Compare Car Finance Costs To Get The Best Deal
Thinking about buying a vehicle?
Before you go through the buying process, it’s important to understand how car financing works.
Car financing is simply taking out a loan to finance your vehicle purchase. The borrower (you) pays back the loan with interest over a specified period of time.
Use the article below to understand the important details about how car financing works, and then use this Car Finance Calculator to compare offers from the various financing companies to get the best deal for your vehicle purchase.
How Does Car Financing Work?
There are various ways to finance vehicles.
Most car companies have their own financing departments that will help you apply for a car loan. Though the loan processing is much easier when your loan originates from the dealer where you bought the car, you also have the option to secure a loan from competing financial institutions.
Always be careful to understand all loan terms when borrowing money. Some financial institutions may charge more than the dealer or have unfavorable terms. Read the fine print before signing.
Remember, financing companies earn money from the interest you pay. The more interest and penalties they can legally charge you the more they earn.
Beware of trickery like charging low interest rates but then recovering the loss by adding hidden charges. The only way to uncover these deceptions and protect yourself is to be an educated consumer by reading the terms and conditions of your contract.
Can You Afford Car Financing?
Before you jump into financing, it’s important to consider your options.
Our Budget Calculator shows transportation expenses can reasonably represent up 10 – 15% of your total budget.
Use this Car Finance Calculator to compare up to five different financing deals so that you can see which loan terms best suits your budget.
Don’t worry if the results are higher than your budget allows – you can reduce your monthly payments by either trading in your old car, buying a less expensive car, or by simply increasing your down payment.
Key Points And Best Practices To Consider Before You Sign Up For Car Financing
In addition to using the Budget Calculator in conjunction with the Car Finance Calculator, consider these key points and best practices:
If you can pay cash for a vehicle, do so because it will likely be your lowest cost option.
If you can’t afford to pay cash then finance your car with caution by comparing all loan terms and conditions between competing lenders.
When you shop out your loan using the Car Finance Calculator it will help you get the best deal that fits your personal situation.
Car Finance Calculator Terms & Definitions
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