A used auto loan calculator is a wonderful tool that will help you determine how much you will be actually paying for the vehicle, and if you can afford it. Many online banking sites, and auto loan websites make a used auto loan calculator available for people to use.
- Online Calculator
- Price of Auto
- Interest Rate Information
Step One - Determine Cost of Used Car
In order to use a used auto loan calculator you are going to have to have some information on the used car you want to buy. One of the pieces of information you will need is the actual cost of the used car. A used auto loan calculator works with this as its main source of information.
Step Two - Know the Interest Rate
After you know the price, the second piece of information you will need is the interest rate, down payment, and/or trade in allowance. This information will determine the actual monthly payment that you will be paying.
Step Three - Go To Website
After you have this information in hand you can go to a website that offers a used auto loan calculator. You can find websites through an Internet search, here at CarsDirect.com, or from a recommendation from a bank or other lender.
Step Four - Become Familiar with Layout
Most of the loan calculators will ask for the same information, but may be oriented in a different way. Take some time to get used to the layout of the calculator and to familiarize yourself with the input areas and information needed. Take this time to also gather any other information you will need to input yourself.
Step Five - Input Purchase Price
Now you get to the actual working with the auto loan calculator. The first thing you will need to input is the actual purchase price of the vehicle. This is before any down payment or trade in. If you do not have a purchase price, but want to see what you will be paying with a used car loan, you can also use a vehicle's value. Type the number into the box without any commas or decimal points.
Step Six - Input Interest Rate
The next step requires you to input the interest rate you will be paying for your loan. If you do not know what this rate is going to be, then use something you think will be close depending on your credit. Good credit is usually 5% to 7%, while bad credit financing is anywhere from 5% up to 26%. Always use the high end so there are no surprises.
Step Seven - Input any other Information
There may also be spaces for down payment and trade in allowance. If you know these numbers then input them the same as the other areas. Some other information will be length of loan, sales tax, or any other fees.
Step Eight - Calculate
Once everything is placed into the boxes on the used auto loan calculator, you then click on the "calculate" button. Some calculators will update the payment information with each new piece of information you input. Once you have everything completed you should have a pretty accurate estimation.