When you do not want to go wrong in any step of your car purchase, a monthly car payment calculator helps you to make the right decision to finance your car.
Purchasing a Car
After the first important decision of buying a new home, buying a car is the second most important decision which an individual takes.
A few important points to be kept in mind before purchasing a car are – multiple quotes from different car dealers, concealing the payment method from the dealer until you buy the car, look out for the best financing deal, make a large down payment or trade in a vehicle so that monthly payments can be minimal in the future.
Also, it is required to check the several other expenses that are associated with the purchase of a car. Insurance, registration, and modifications to fit your standards are the additional costs to the base price of a car. The more expensive the car the higher are the insurance and maintenance costs. It is always better to have a actual cost calculation which is not only the monthly payment but also the upfront costs.
Monthly Car Payment Calculator Analysis
Before the purchase decision it is important to analyze if you can afford a car loan and if you can take the burden of a monthly payment from your budget for the full term of loan.
For financially taking the right decision of which car to be purchased, it is important to calculate the monthly car payment and ascertain if it fits your budget. Online there are many car payment calculator available which will help you to derive your monthly payments towards the car loan payment.
The Car Payment Calculator helps find the monthly payment for any vehicle, including boats, trucks, recreational vehicles and motorcycles.
Monthly Car Payment Calculator
Some of the best monthly car payment calculators that are available online are listed below. Let’s discuss them in detail.
Bankrate’s Auto Loan Calculator
The auto loan calculator from Bankrate helps you to decide your affordability from a monthly payment basis.
Before starting to use the loan payment calculator, you need to list your choice of vehicles that you are interested to purchase and their estimated prices. Next, subtract the money you can use for down payment and also the estimated value of your old car’s trade-in.
Then, compare costs to make sure that the calculated auto loan payment based on the amount you need to borrow aligns with your monthly budget.
Trade-in value of your old car can be calculated using online reference guide like Edmunds or Kelley Blue Book. To get a fair value, most individuals put a 15% to 20% lower value than original. Also, it is important to not forget to deduct any amount you owe from a previous auto loan from this price estimate.
Using the calculator:
Firstly enter the amount you need to finance your car into the auto loan calculator, the time duration for how long are you looking to borrow. The term will have an impact on the monthly car payments.
A shorter term auto loan will lead to high monthly payments but a lower annual percentage rate (APR) and less payment of interest in the long run. APR stands higher for a loan using a used car trade-in depending on the history, condition and miles driven.
Lastly, an interest rate has to entered based on your credit score and loan term. You can check Bankrate’s Auto Loan Rates for some current average APRs.
Also Read: How to Address a Low Credit Score
Bankrate offers Current Car Loan Interest Rates by which you can choose the loan rates and a loan that is suitable for you according to your criteria and requirements.
Your results not only show estimated monthly auto payment but also the total principal amount paid upfront and the total interest paid. You can add the two figures and check the total amount you will pay for your new or used car over the life of the loan.
In order to avoid a disagreeable deal for your car purchase, getting pre-qualified with multiple lenders with the help of a soft inquiry is a good option. There is no impact to your credit score by doing this and a hard inquiry is set up only during the pre-approval process.
Pre-qualification rates can be compared with the rates you get from the salesman at the dealership. If in comparison your rates are lower than the dealer, he/she is hiking up to earn a commission. By this you can decide to go ahead with lender in pre-qualification rather than dealer financing.
Other monthly car payment calculators
There are other car payment calculators available online like the Car Payment Calculator from Financial Mentor, Car Loan Calculator from Money Under 30. Nerd Wallet also offers a Car payment calculator.