Car-Buying Life Hack: Use a Payment Calculator to set a Budget Before You Buy

Set to purchase your next vehicle? It’s easy to stress over every aspect of the car-buying process. Choosing a vehicle that suits your wants and needs is just the start. Purchasing a motor vehicle is the second biggest financial investment adults will make in their lifetime.

If you’re like most buyers, you’re probably planning to finance your vehicle purchase with a loan from a bank or financier, and right now, you’re wondering what you can expect in monthly payments.

A monthly car payment is generally determined by a lender based on certain considerations: the vehicle’s full value, the purchaser’s credit score, the purchaser’s debt-to-income ratio, the length of the loan, the down payment amount.

Though a lot is out of your hands here and trying to calculate all those variables surely has you scratching your head, there are ways to hack the process and at least glean some idea of what you can afford before you buy.

Our Auto Loan Calculator will help you budget ahead of time for your vehicle purchase.

Visit our “Payment Calculator” page to quickly find out how much you’ll need to purchase the vehicle you want.

To begin calculating your payment enter the price of the vehicle you’re interested in, followed by the down payment amount you can afford. The estimated interest rate, known as the A.P.R. is calculated for you, but can be changed if that information is available to you.

You can also adjust the term of your loan, selecting anything from 12 to 84 months. Once you’ve entered all your info, the calculator does the work to provide you with an estimated dollar amount for your monthly payments.

It's just that quick and easy! Though it’s important to keep in mind that the results of the calculator are just an estimate and not a guaranteed rate, this a great place to start and will help alleviate some of your concerns when buying a vehicle!


Categories: Finance

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