Other than the purchase of a home, the largest purchase most people make is the purchase of a new or used automobile. Since the cost of an automobile can be thousands of dollars, most people need to finance their purchase. So how do you know how much your payments will be when financing an automobile?
The easiest way to figure out your payments and what you can afford is to use an auto loan calculator. The most common auto loan calculator will request the following information in order to correctly calculate your monthly payments
- Loan Amount (in dollars)
- Interest Rate (annual)
- Length of Loan in either months or years
With the click of a button, the calculator will then provide you with your monthly payments. Often, the loan calculator will also show you what your total dollars paid will be when you have paid off the loan. You may also find that the calculator will ask for the total purchase price of the car and your down payment, rather than the loan amount. The calculator will then do the loan amount math for you.
Now that you know what the calculator can do for you, how can you go about finding one? There are a number of ways to find an auto loan calculator.
- Search "Auto Loan Calculator" from Google or another search engine, such as Yahoo. A quick search on Google showed a number of quick reference auto loan calculators.
Search financial sites, such as Money or most bank websites, including BankOfAmerica and WellsFargo, and go to the "Loans" links on their main pages.
Visit the websites for major automotive manufacturers, as they usually have financial institutions linked to their websites. Many will allow you to build your dream car, see if it is in stock at local dealerships and apply for your loan, all online.
If you would prefer not to use the Internet, you can contact the local branch of any bank, savings institution or credit union and they can provide you with a loan calculator.
The last option would be to visit the local car dealership. The dealership will be happy to work up your loan options and review a loan calculator with you to determine what you can afford and what your monthly payments will be.
The use of an auto loan calculator should be free. The information is available for you to use to determine whether the car of your dreams can become your reality!