Auto Loan Calculator
This is a fixed-interest loan calculator specially customized for auto loans, taking the down payment, trade-in value, and sales tax into consideration. This auto loan calculator can assess the monthly payment, total payment amount, interest, and monthly amortization schedule of a one-time auto loan. For the best use of this auto loan calculator, it is best to add the destination fee, registration fee, and other costs to the price of the automobile.
Other than paying with cash, the two other ways of purchasing a vehicle are via auto loans and leases. Leases normally are available for new vehicles sold in the United States. At the end of the lease, the buyer normally has the option of either returning the vehicle or buying it. Normally, the monthly lease payment is lower than a monthly loan payment because the buyer is only paying for the vehicle's depreciation. However, the total cost of the lease plus buy out is higher than the cost of purchasing the automobile with a loan. Please use our Lease Calculator to compare the two.
Auto loans normally can be approved for both new and used vehicles. In the United States, buyers can get a pre-approved loan from a lender and then purchase an automobile from a dealership or other source. However, most people will apply for the same-day auto loan from the dealership, right after they make the decision to purchase. Normally, an auto loan is secured by the vehicle. This means the lender is the lien (title) holder of the vehicle until the loan is paid off. Because lenders hold the lien on the vehicle, most have certain requirements, especially insurance requirements, which the borrower must meet. The borrower is also responsible for keeping the vehicle in good condition. If the borrower fails to meet these requirements or make the payments, the lender can repossess the vehicle without the borrower's permission.
When purchasing a vehicle with a loan, the borrower should be prepared to pay the up-front costs at the time of purchase, which includes a down payment, tax, registration fee, and other charges.