An auto loan calculator is an online tool that helps you figure out how much your auto loan will cost you per month. In general, the auto loan calculator asks for the following information: the auto loan amount, the time frame of the loan (in months or years), the interest rate percentage per year, and the auto loan?s starting date. Other fields you may be asked to fill include the amount of down payment and the trade-in value.
Once this information is filled into the auto loan calculator, you can simply click for a calculation. This type of auto loan calculator is often available on banking websites, car sales websites, and sites that represent several lenders. These auto loan calculators likely will not ask for the interest rate, filling in their own information. And an auto loan calculator on a site that represents several lenders will search for the best interest rate for you.
When buying a car, figuring out how much you can afford should be the first step, and an auto loan calculator can help you do this. Secondly, you can then figure out which car you can afford. Going through the process in this order should save you time and frustration. These two steps are related in that the amount of the car will affect the length of the loan, which in turn will affect the interest rate you can get.