Monthly Auto Loan
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Written by
Sara Routhier
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Reviewed by
Joel Ohman
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UPDATED: Oct 21, 2021
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A monthly auto loan calculator is designed to help borrowers calculate the total amount of money they will pay over the duration of a financing arrangement’s lifetime.
These tools have the added benefit of telling borrowers what their monthly payment will be on a particular vehicle’s price as opposed to the amount of a car loan a borrower will need.
By entering the total price of a vehicle (which may or may not be the sticker price, as borrowers can usually talk dealers into offering a better price), the borrower’s down payment size, the number of years a borrow plans to finance this money for, and expected interest rate, applicants will be given all of the most important information relevant to the purchase of a vehicle.
Additionally, calculators may generate additional information, like a pie graph to visually depict the components of the financing conditions entered.
If the results look too high or too low, play around with the principal, term, and interest rate. Because this financing tool can be used before ever stepping foot on a dealership, applicants can use this to discover the necessary conditions leading to an optimal price point. That way, when it comes time to negotiate a deal, borrowers know exactly what they need to get a dealership to agree to in order to secure a healthy car loan.
Once those conditions are met, some calculators may even automatically generate a pre-filled application that borrowers can use to apply for an auto loan.
By finding affordable terms with this car loan calculation tool, borrowers can walk into a vehicle dealership equipped with the knowledge needed in order to make a financially responsible deal.