The best way to determine what you next car loan will cost you is to go online and find a useful car loan payment calculator. This tool works if you are looking to buy a new or used car or if you are trying to refinance a car you already have. The tool is quite simple but can help you determine what you can afford or if refinancing will save you any money. Here are the steps you take in using a car loan payment calculator:
One – make sure the calculator you choose is one that will help you. It should have you input three to five items to get an accurate payment. The first thing it will ask is how much are you trying to finance.
Two – some calculators will ask for the amount of down payment you are planning on. If the calculator you find does not ask for this, then go to step three. If it does, enter the amount you are planning to put down. Remember that a down payment is usually required.
Three – determine how long you want to finance your car loan. The most common term today is 72 months but many borrowers finance shorter than that. Many times that will be determined by the lender and will be determined by the vehicle you are buying or refinancing
Four – last but not least is the APR or annual percentage rate. If you don’t know what that will be, you can estimate on what you are expecting from the lender.
Once you have input all of this information into the car loan payment calculator, you can then see your estimated payment. These calculators are used for illustrative purposes only and may not be reflect the exact payment you will have. They will give you a very accurate estimation on what to expect.
Once you determine what you can afford, apply online for a new or used car loan or auto refinance loan to refinance an existing loan and lower your monthly payments.