Have you taken out an auto loan in the past, but are struggling to meet payments? Would you like to reassess the terms of your loan, though are perhaps daunted by the idea of refinancing? If this is the case, look no further than our auto refinance calculator, created to make refinancing your car loan easier. In the current climate, it can be overwhelming to shop around and consider different loans – everyone seems to be offering a different incentive, making it difficult to weigh them up. With this calculator, you simply take the refinance figures provided by your lender or dealership and punch them in. Then, let the calculator do the work: it will consider what you are currently paying against the proposed figures offered, then present how much you could save.
How to use it
Using the auto refinance calculator is simple, just as long as you are aware of the figures in question. We would advise discussing refinancing with your dealership, or else simply researching the various quotes offered online. This way, the calculator will be able to give you a more accurate estimation of what you could save. Begin by entering the total you have left to pay on your auto loan into the box marked “Current Loan Balance”. Underneath, add the interest rate or percentage per year that you are currently paying, as well as your monthly payment in dollars. Finally, input the new interest figure being offered by your lender or dealership into the field marked “Proposed Interest Rate”. The result will show you how much your monthly payment could be reduced by, excluding the cost of refinancing.
To show the calculator in action, we can enter an example. Let’s propose that a person is looking to refinance with $15,000 of outstanding balance to pay on their loan. They currently pay an over-average 5% interest rate, at $500 per month. Each of these details can be entered into the fields labeled “Current Loan Balance”, “Current Interest Rate” and “Current Monthly Payment” respectively. We can imagine that the person has found a different dealership that, through a bank, can offer a lower interest rate of 4%. The act of refinancing will cost money, but we will ignore that for the case of this example. If we click on “Calculate”, the auto refinance calculator will show us that these improved terms will reduce the monthly payment from $500 to $488, saving around $373 in the long run.