Auto Loan Calculator- Use It To Find Your Monthly Payments and Get a Car Loan Today!
An auto loan calculator is a helpful tool that will allow you to see what your monthly payment could be, based on your loan terms and the purchase price. Use CarLoanMatcher.com to get a free no obligation auto loan quote and you can use the information you receive to calculate your auto loan today!
How to Calculate Your Monthly Payments
- Starting with the purchase price, deduct the value of your trade-in (if applicable).
- Calculate the state sales tax, and add this amount. Keep in mind that some states don’t allow for a sales tax deduction on trade-ins, so you may have to pay tax on the total cost of the car.
- Add any dealer fees. These may include preparing the vehicle for sale, destination fees, or financing-related fees.
- Subtract your down payment. This is the amount financed.
- Calculate your total interest by multiplying this amount by your interest rate percentage and dividing by 100, then multiplying this number by the number of years on your loan term.
- Add the total interest to the calculated purchase price and divide it by the number of months on the loan term. This is your monthly payment.
Example: The purchase price is $24,000. Your trade in is worth $8,500. State sales tax is 8%, and your state requires you to pay sales tax on the full purchase price. Dealer fees total $450. Your downpayment is $5,000. Your interest rate is 6% over 4 years (48 months).
| $24,000 | Purchase Price |
| – $8,500 | Trade-in |
| – $5,000 | Down Payment |
| $10,500 x 8 / 100 x 4 = $3,570 | Total Interest |
| $10,500 | Amount financed |
| +$3,570 | Total Interest |
| $14,070 / 48 = $293.13 | Monthly payment |
Choosing Which Car to Buy
One of the major decisions you make when buying a car is whether to choose a used or new model. The factors below can help you to determine which is right for you.
Buying A New Car
For some, buying a used car isn’t an option. They want the ability to select the color and customize the features that they want. Additionally, there is pride and a peace of mind in being your car’s first owner. Some other benefits include:
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Lower maintenance expenses: A new car, truck or SUV won’t need any maintenance for the first few thousand miles. After that point, just an oil change and tune-up will be needed. More automakers are offering incentives that cover the cost of routine maintenance.
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Warranty coverage: Manufacturers cover their new vehicles under a warranty for at least three years, some for much longer. While under the manufacturer’s warranty, anything that goes wrong with the car is the dealer and/or manufacturer’s obligation to fix it. Additionally, many brands offer warranties for the car’s powertrain that often extend beyond the bumper-to-bumper warranties. These can last up to ten years or 100,000 miles.
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Peace of mind: If you have problems with the vehicle, you have rights under your state’s “lemon laws.” If you are able to prove that your new vehicle is a “lemon” under your state’s laws, you can receive a replacement or even get your money back.
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Roadside assistance: Another feature offered with most new cars is some level of complimentary roadside assistance during the time when the vehicle is under warranty. Some automakers will also reimburse you (or provide alternative transportation) if you are stranded away from home.
Buying A Used Car
If you’re not set on the idea of buying a new car, truck or SUV, buying a used car also has its benefits:
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Just like new: One more trend making buying used a great option is the growth of certified pre-owned (CPO) programs. This started when high-end brands like BMW, Lexus, and Mercedes-Benz needed to sell previously-leased cars that had only been used for a few years. Since then, it has become an increasingly popular alternative for car buyers.
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Improved reliability: While used vehicles generally don’t come with the same warranties as new ones, the factory warranty on a new car can often be transferred to a second owner. Buying certified pre-owned (CPO) vehicles from authorized dealers means you can buy a late-model used car, with the added benefit of the original warranty. Manufacturers will often offer longer-term warranties for CPO vehicles. Some buyers also choose to add extended warranties.