Car loan calculator [Choose your ideal monthly premium]
Use the car loan calculator Estimating the monthly payment of your car loan before going to the dealer can significantly increase your negotiating power and help you choose the loan that best suits your needs and budget.
Even if you can't calculate your monthly car payment exactly, having a good estimate it will help you compare car loan offers with much more confidence.
Can a financed car be returned?
How to use the car loan calculator
Next we will look at the different numbers that will make up the payment for your car and show you how to use the car loan calculator
- Car price: In this field you must enter the price you plan to pay for the car after the negotiation.
- Interest rate: Here you can enter the rate you qualified for or estimate the rate based on your own credit score using the drop-down menu at the top of the calculator.
- Refund and initial payment: Enter the total amount of money you are investing in the new car, plus the trade-in value of your current vehicle (if you have one and plan to trade in it).
- Number of months: enter in this field the duration of the loan or how long you intend to take to pay off the loan.
- Results: There is no need to use the "calculate" button. Simply enter your numbers and the results will update immediately.
In addition to looking at the result of the monthly payment, make sure you know the amount you will pay for interest only. If that's not serious enough, look at the total amount you will spend on the car loan (this excludes the down payment).
Note: If you change some numbers such as the trade-in or the advance, the interest rate or the duration of the loan, you will also see the payment of the car and the total cost of the loan change. This way you can easily compare offers.
How to refinance a car?
How to get the data you need to enter into the Auto Loan Calculator
Below we explain how to get the amounts you need to enter to make your monthly installment estimate with the car loan calculator.
How to estimate the prices of new cars
As a starting point, you can use the vehicle sticker price (also called MSRP). However, In most cases, you will be able to negotiate a discount on the sticker price. Manufacturer discounts can also lower the price. Remember to include the cost of the options and the "shipping fee" that is charged on all new cars.
How to estimate used car prices
If you are buying a used car, calculating the selling price is a little more complicated. You can start with the seller's asking price, but you may be able to negotiate a lower price. To get an idea of a fair price, use online price guides or check local online classifieds to find comparable cars.
How to estimate trade-in values
You can use the online portals to get assistance with ratings and prices. When you use a price guide, be sure to check the trade-in value and not the retail cost (the price at which the dealer sells the car). You can also review cash purchase offers in yours Auto Max locally or online on services such as Vroom or caravan, for reference. You can also find out how much your car is worth in the blue book.
How to estimate interest rates
If you've been pre-approved or pre-qualified for an auto loan, enter the rate you received from the lender. You can also check the auto loan interest rates offered by online lenders. Or, if you know your credit score, you can estimate the rate you are likely to be offered based on the average rates:
| credit score | Middle April, new car | Middle April, used car |
| Superprime: 781-850 | 3.65% | 4.29% |
| First: 661-780 | 4.68% | 6.04% |
| Not prime: 601-660 | 7.65% | 11.26% |
| Subprime: 501-600 | 11.92% | 17.74% |
| Deep subprime: 300-500 | 14.39% | 20.45% |
Keep in mind that the rates for new cars will be lower than for used cars. Sometimes car company finance companies even offer 0% rates.
How to estimate sales taxes and commissions
Don't forget about taxes and fees when considering the total "starting" price of your car. You will need to pay state and local sales tax, a handling fee (which can vary greatly), and registration fees. You can search the internet or call the retailer to ask them to estimate these costs for your area.
How to choose the terms of the loan
Auto loans typically range from two to six years, but the longer your term, the more interest you will pay. Loans of no more than 60 months for new cars and 36 months for used cars are recommended.
If you want to discover other articles similar to Car loan calculator [Choose your ideal monthly premium], you can visit the Last News category.
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