If you are in the market for a new vehicle and need to know how much a car loan would set you back, you are in the right place. This Auto Loan Calculator will help give you an estimate of the loan amount you'll require to finance your purchase and how much your monthly installments will be for the estimated loan amount. For the calculator to work, it is essential that you have an idea about certain aspects of your purchase. They are as follows:
1. Vehicle price: Also called sticker wic~ this is the cost quoted by you car dealer or agent. Car dealers tend to sometimes additionally lower the price of the car if paid by cash rather than by check. So make sure you've clarified that aspect when you go asking for a quotation.
2. Down payment: This is the amount you can pay upfront upon purchase of your vehicle. A higher down payment leads to a lower rate of interest on your overall amount.
3. Trade-in: This is the value your old vehicle in case you are exchanging it during the purchase. On obtaining all this information you can feed the details into our loan calculator which will automatically calculate your total loan amount and the corresponding estimated monthly installments. Apart from the from above calculated loan amount, there are certain other fees that might apply to your purchase such as
->Vehicle registration fees
->Pollution testing fees
->Vehicle insurance fees
4. Sales tax: It is a tax imposed on the sale of your vehicle. It differs from state to state and also on the type of vehicle. Luxury vehicles tend to have a higher sales tax in comparison to nonluxury ones. Also, new vehicles tend to have a higher tax rate in comparison to second-hand vehicles.
5. Interest Rate: It is a tax rate that is determined by the given loan amount and loan term and is set by the bank or financing institution. The interest rates vary based on the whether its a new car or old car and might also depend on your credit rating.
6. Number of months: This is the period over which you want to stretch the payment of your purchase. These are fixed by the bank or the dealer, and the interest rates are determined depending on the length of the term.
Also, some dealers provide certain perks and freebies like free servicing for the first year, a full tank of gas on purchase or a complimentary car perfume or seat covers, etc. Each of these aspects will help determine the overall cost of your purchase.