The best way to determine what you next car loan will cost you is to go online and find a useful car loan payment calculator. This tool works if you are searching to buy a pre-owned car or for anybody who is trying to refinance a car you can show. The tool is quite simple but will help you determine what you can afford or if refinancing you will save any money. Here are the steps you take in using a car loan payment calculator:
First – make sure the calculator you choose is one to assist you. It should have you input three to five items to get an accurate payment. First thing it will ask is how much are you trying to finance.
Second – some calculators will ask for as much down payment you are planning on. If the calculator you find does not ask for this, then go to step three. If it does, enter the amount you plan to put down. Remember that a payment in advance is usually required.
Three – determine how long you should finance your car loan. The most common term today is 72 months but many borrowers fund shorter than that. Many times that will be determined by the lender and will be determined by the vehicle you are purchasing or refinancing
Four – lastly is the APR or annual percentage rate. If you can not know what that will be, you can estimate on that which you are expecting from the lender.
After getting input all this information into the car loan payment calculator, which could see your estimated payment. These calculators bring illustrative purposes only and might not be reflect the exact payment you’ll possess. They will give you a very accurate estimation on what you should expect. You can get a useful calculator here.
About me: Chris Goodman has been in the auto finance business for longer than 20 years and has assisted thousands of consumers with their car loan needs. His articles are insightful and assist consumers in understanding the particulars of auto finance. OpenRoad Lending is an online lender with a consumer friendly website providing auto financing solutions to consumers in the act of purchasing a pre-owned vehicle or refinancing their existing auto.