A car finance calculator can be a helpful tool when trying to determine the optimal interest rate, car loan amount and payment term details for the purchase of a new or used car. The Internet provides a fantastic starting point for a car loan calculator search. With a few bits of information and a couple of mouse clicks, the consumer can determine how much car they can afford before beginning the new car search.
A car loan is there to help the consumer afford a vehicle they would otherwise not have the money to buy with one lump sum payment. Loans are available for both new car purchases and used car purchases. A down payment may be required when buying a new, or new to you car. This will often be determined by the credit rating of the buyer. Other factors that may be taken into consideration include the purchase price of the car and income of the buyer.
When searching the Internet for a car finance calculator, it is important to find the right type of calculator. Financial support with mortgage, commercial and credit card calculators are also available, but these are not created for use as car finance calculators. Other names for a car finance calculator include an auto loan or car loan calculator.
The use of a car finance calculator will help the consumer judge what type of car they can purchase and the maximum amount of a loan they can afford monthly. The most common fields used in a car finance calculator are total purchase price, interest rate of the loan and the length of time desired for repayment. The most common repayment time frames are 36 months, 48 months and 60 months. In recent years, 72 month loans have become popular for consumers who wish to purchase vehicles with a higher purchase price for a lower monthly payment. The longer the repayment term, the more money the consumer will pay in total for the new car.
Some advanced car finance calculators will also include a field for down payment amount or trade in car value. The less money the consumer finances, the lower the payments will be and the shorter the repayment period can be set. In cases of negative equity in a trade in car, the amount of money financed could be higher than the purchase price for the car. Advanced car finance calculators may also provide information about the loan if it were changed. For instance, if the consumer chose a 36 month repayment instead of a 48 month repayment, these car finance calculators would show the consumer how much money they would save.
The consumer can use a car finance calculator to prepare for the trip to the car lot. Many people dread the time spent purchasing a car due to the pushy salesmen and loss of control during the financing part of the deal. When a car finance calculator is used before stepping onto the car lot, the consumer can say, "This is how much I can afford and this is the rate I want for the loan."
While a car finance calculator can give the consumer a helpful look into the amount they could potentially afford for a new car, there is no way to know for sure the interest rate the lender will offer once the loan is being prepared. The consumer can visit the car lot before using the car finance calculator for a better understanding of the interest rates the lender may offer.
