How to Use an Auto Finance Calculator

How to Use an Auto Finance Calculator

When you are in the market for your next vehicle or in the market to refinance an existing one, it is helpful to use an auto finance calculator so you can determine what the loan will cost you. They are very easy to use and you can find them on most of the leading car loan websites. Listed below are step by step instructions on how to use an auto finance calculator.

Step 1 – most calculators ask for the same common input values. This ensures you will get the calculation you desire. For this illustration, we will input the total price of the vehicle in this step. It should include all taxes and fee and be the “total” price.

Step 2 – for step two we want to input the amount of down payment you are planning to put down on your new loan. If you are refinancing an existing loan, this value would be zero. Most lenders on a new or used purchase require some down payment. This amount will vary based on your credit profile.

Step 3 – decide on the term you want to finance for. Terms typically vary anywhere from 36 -72 months and will sometimes be limited based on the age and mileage of the collateral.

Step 4 – this is the last input for this calculation and here you will key in the interest rate you are expecting to pay on the loan.

Once you have input all of this information into the auto finance calculator, you can then calculate your payment. These devices are used for illustrative purposes only and may not be reflect the exact payment you will have. They will give you a very accurate estimation on what to expect.

See also  How to Get Out of a Bad Car Loan