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...
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
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.
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