Car Finance Calculator


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...

Enter the amount to finance($):
# of months
Interest Rate >>> % % % % %
Monthly payment:
Total principal:
Total interest:
Total payments:

Understanding Car Financing

Have you thought of buying a new vehicle? Before you go through the buying process, it is important that you understand how car financing works. Car financing is simply taking out a loan to finance your vehicle purchase. The borrower pays back the loan with interest for a certain period of time. Once you understand how car financing works, compare offers of the different financing companies using the car finance calculator to get the best deal for your vehicle purchase.

How Do Car Financing Work?

There are different ways to finance your purchase of new or used vehicle. Most car companies have their own financing arms that will help you in applying for a car loan. Though the loan processing is much easier if you take loan from the dealer where you bought your car, you have an option to take loan from other companies. But you need to be careful with whom to deal with. Other financial institutions charge more than the others. Financing companies earn from the interest you pay. The higher the interest they charge the more they earn. For some financing companies, they reduce the interest rates but recover their loss by putting some hidden charges or fluctuating interest rates. Be an educated consumer; understand what the financing companies are putting in your contract.

Check Your Affordability

Before you jump into financing, it is important that you check your financial situation and check if you can afford the monthly payments. According to financial experts, you should need to allocate at least 10%-20% of your income for your monthly car payments. Using the above car finance calculator, you can compare up to 5 different financing deals and check which deal suits your budget. Do not dismay if the results show higher than what you have budgeted. You can reduce your monthly payments by either trading in your old car or by simply increasing your down payment. Check with your financial advisor for other ways to reduce your monthly payment. Before you make a decision, know your obligations and risks for taking a car loan.

Some Points To Consider Before You Sign Up For Financing

  • Shop around for the best deal for the vehicle you have think of buying.
  • Compare buying versus leasing options. Use the car lease vs. buy calculator and compare which option saves you money.
  • Check your credit history. Your loan finance rate will depend on your credit score. If you have paid your past financial obligations on time, you will likely get a lower interest rate.
  • Do research and compare the interest rates and other financing conditions from banks and different financing companies. It is important that you understand the agreement before you close a deal.
  • Study carefully the vehicle you want to purchase. Make sure that your vehicle will fit your transportation needs and stick within the price range that is in your budget.
  • Try to negotiate the terms and agreement of your loan. Inform your car dealer that you are also negotiating with other dealers so they will give you the best offer. Compare car offers using the car finance calculator and check which deal gives more value to your money.
  • Carefully evaluate other add-on products such as accessories, insurance, extended warranty, etc. which are optional. These may be additional expenses that do not add value to you. If you don’t need these products, make sure that it is not included in the car cost.
  • Know that if you fail you to pay your monthly payments, your vehicle will be subject for repossession. Your home may also be at risk if you used it as a collateral for your car loan.
  • Understand the terms and conditions of your contract before you sign. Remember that your obligation starts right after you sign the document.

Car Finance Calculator Terms And Definitions

Purchase Price of the Car – The amount you need to pay your car dealer after deducting the trade in allowance. This amount is excluding federal and state taxes.

  • Term – The number of months you need to pay your auto loan
  • Auto loan interest rate – Annual interest rate for the standard auto loan
  • Sales tax rate – Sales tax percentage rate charged on this purchase
  • Annual Interest Rate – The interest rate charged for borrowing
  • Down Payment – The initial amount or the advance payment for your loan
  • Monthly payment – Monthly payment for your auto financing
  • Trade –in allowance – The total amount that you are given for any automobile that you trade-in as part of your purchase

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