Are you looking to take out an auto loan but are overwhelmed with the numbers being thrown at you from every angle? Would you like to take those numbers and turn them into a single number that you can understand? Well, this car finance calculator has been created specifically for that reason. Whether you are taking out an auto loan to purchase a new car from scratch or to trade an old one in, this is the calculator for you. Unlike our simpler auto loan calculator, this car finance calculator also takes into account such variables as any down payment you may be asked to pay, or a trade-in price that may help you out. Simply look at your local lenders and car dealerships, note down the figures they are offering, and then punch them into the calculator to discover the best deal for you.
To briefly run through a quick example, we can say that an average car loan would be around $25,000, so we can enter that figure into “Car Loan Amount” box. $1,000 of that $25,000 is required as part of a down payment, and $2,000 can be retained by trading in a used car, so enter these details into “Down Payment” and “Trade-in Value” respectively.
We then enter the loan period at 5 years, or 60 months, with 4% interest rate over the course of the loan. Finally, we can imagine there is a final sales tax figure of 5%, so we can add that into the final box. Upon calculating, we are given a monthly payment of around $428, with a total interest of $2,441 to be paid by the time the last payment is due.
How to use it
The car finance calculator is not at all difficult to use, but will require you to be aware of certain figures before you use it. The first of these, the car loan amount, is perhaps the most important figure of all. Yet, this will be offset by the down payment required by the lender or dealership and any trade-in price you may garner. Again, all these details are available on request. Once you have entered these three variables into the first three boxes, you may enter the loan period (in months) below, followed by the interest rate offered on the loan and any applicable sales tax. You can then click on the “Calculate” button, which will bring up a monthly payment figure and the total interest you will have to pay by the time the loan is paid back.