Auto Loan Calculator

Are you baffled seeking the correct loan for your vehicle? You probably need an auto loan calculator.

Need to change your gas-guzzling car or buy a truck for your transport business?

A loan calculator can help you do the math for buying your desired vehicle. Advertisement

What is an auto loan calculator:

it is a program that helps you calculate your monthly repayments on the loan you take for buying the automobile.

It simply requires some data regarding the vehicle price and the tenure to calculate the repayment premium for you.

This computing software come as installable programs or as online applications/calculators on many websites providing loans for vehicles.

You can search the net for such free calculators that help you do the complex mathematics for your auto finance calculations.

When do I need a vehicle loan calculator: Buying any automobiles for own use or business use requires careful planning as well efficient allocation of money. Also, Check financial calculator

If you can’t afford the precious dollars to buy an automobile, you probably would need a loan to finance the deal.

Here are some situations when you must seek an auto loan:

  • For purchasing a new car, boat, bike for personal use
  • For carrying out repairs and maintenance of a car
  • For ensuring payments on auto insurance
  • For trading in your old car and buying a new car in exchange
  • For purchasing a fleet of vehicles for your business or your employees

What can an auto loan calculator do:

They can do a variety of loan-related calculations for your next or first vehicle purchase; all you need to do is supply a few details to get automated answers.

Vehicle Price:

Before you actually begin to compute the loan amount and loan-term details, note down the actual price of the vehicle.

Add up local taxes, registration charges, on-road vehicle duties, etc. to the base price of the truck or car you are planning to purchase.

Note that vehicle prices often vary across different regions or cities.

Contact your local dealer for the best possible discounted deals. On some websites, this is shown as Auto or Vehicle Loan Amount, instead of Vehicle Price.

Vehicle Down Payment:

Once you know the vehicle price, find out the minimum booking amount or the minimum down payment required by the dealer.

Compare it with how much cash down payment you can afford. If the down payment is within your paying capacity, go ahead with the deal.

You can pay the remaining amount by seeking a loan.

This amount will be your actual loan figure. Alternatively, you can seek a complete loan on the full vehicle price.

Sales Tax:

Any commodity that is sold is eligible for some sales tax applied by your local government.

For each city or state, this tax is different. Find out the sales tax from your dealer.

Some dealers would quote a price inclusive of all sales tax, registration amount, etc. In this case, you do not have to worry about the sales tax

Interest Rate:

In most cases, auto financiers charge you a flat interest rate.

However, some would charge a variable rate based on the vehicle price, the tenure or the time period in which you can pay back the entire loan.

Others offer flexible or floating interest rates that vary as per market conditions, your vehicles market value and other factors.

In most cases, auto financiers charge you a flat interest rate.

However, some would charge a variable rate based on the vehicle price, the tenure or the time period in which you can pay back the entire loan.

Others offer flexible or floating interest rates that vary as per market conditions, your vehicles market value and other factors.

Time Period or Tenure of the Vehicle Loan:

The term or time period for payback is often dependent on your own paying capacity.

Consider factors like your average monthly income, your savings, your expenses, etc. to decide how many months or years you would need to pay back the loan amount.

Most auto loan finance companies provide fixed slabs of 1, 2, 3, 5 and 10 years for paying back your loan.

Others provide you enough time for paying back your loan as per your own convenience.

Note that the longer the time period for payback, the higher would be your repayment figure, simply because you would be paying more interest rate.

Look for the equated monthly installments or the repayment figure to understand how much would you end up paying finally.

Other types of calculators:

Auto loan calculators can also do some reverse mathematics for you.

For example, an affordability calculator will show you if you can afford to buy a vehicle based on average monthly payback capacity, your down payment term, and prevailing interest rates.

A reduced rate loan calculator can show you how much discount you will receive if you pay back before time or how much rebate you would be given as per the financier’s terms and conditions.

Some auto calculators can show you the insurance you need to buy for a particular vehicle.

Note that calculators for an auto loan should be used only to generate a rough picture of the repayments you would be making.

Most calculators cannot show you hidden costs such as commissions, acquisition charges, tag and title deed document charges, any environment or pollution taxes, etc.

This is why you must always watch out for hidden costs. Understand the terms and conditions involved in getting the loan.

Talk to your auto dealer or your local bank officials to compare various finance options. Here’s wishing you best of luck in securing the right finance option using the auto loan calculator.

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