How Can an Auto Loan Approval Calculator Help?

Get Car Financing
Even with poor credit.

By

Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


, - September 7, 2018

Looking for an auto loan approval calculator? At CarsDirect, our car loan calculator can get you on the right path to loan approval. But how exactly does it work, and how will it help?

The Auto Loan Calculator Process

We’ve created our loan calculator to make potential borrowers and buyers more aware of what they can expect out of a loan. Just be advised that if there’s bad credit involved, leasing may not be a viable option.

Here’s what the user will need to provide when using the calculator:

  • Monthly payment – A good way to calculate how much money a potential borrower should be paying per month is to calculate their payment to income ratio (PTI). Borrowers with bad credit should take their monthly gross (before taxes) income and multiply that by 20 percent (0.20). The end result is an approximate maximum amount that can be used toward a monthly car payment.
  • Down payment – It’s highly recommended to have a down payment on a vehicle. Although there isn’t one set rule for how much money to put down, the bigger the down payment, the less money the buyer pays in interest expenses. Double check if there’s any equity in your current vehicle, too. This equity can be applied toward the next vehicle as a down payment.
  • Credit rating range – Get copies of your credit reports at AnnualCreditReport.com and determine what your credit rating range is. Consumers are entitled to one free report from each of the three credit bureaus every 12 months.
  • Loan term – Our calculator gives the user term options as low as 24 and as long as 84 months. This shows the effects of loan term lengths and how much money a borrower could be saving or spending.
  • Sales tax – Sales tax varies by state, so make sure to know how much the sales tax rate is where you live. If you don’t know, you can find out by going to TaxFoundation.org.

After everything is calculated, the user sees a suggested maximum amount to spend on both a financed and leased vehicle. Be aware that these numbers are estimates – they may not reflect the exact amount that will be approved for financing. Another benefit to our calculator? It goes beyond the money. The user is able to see exactly what types of vehicles are within their calculated price range.

Let Us Help

At CarsDirect, we understand that not everyone has great credit. This is why we’ve partnered with dealers that have car loan providers qualified to work with unique credit types. So, if you have bad, little, or no credit, we want to help you get connected to a local dealership. Get started today and fill out our auto loan request form.

Need a Car Loan?

It only takes a minute.

Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.


Loan approval is not guaranteed and is subject to credit application and approval of the lender. Individual loan terms may vary. Use of this website constitutes acceptance of CarsDirect.com's Terms of Use, Disclaimer, Privacy Policy, and Cookie Policy.

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