Auto loan calculators can help you estimate your potential monthly payments, making it easier to compare lender rates and find out what you can afford. Show
Affiliate Disclosure Content on Jalopnik Advisor is commercial in nature and independent of Jalopnik Editorial and Advertising. Jalopnik Advisor content is free to consumers and always will be, however we and our partners may be compensated if you purchase a product or service through the links on this website. An auto loan calculator quickly reveals how much you can expect to pay per month when financing a car. It’s easier to compare car loan options when you have an understanding of the monthly payments that come with your interest rate and desired term length. We researched the industry’s top car loan companies to figure out which ones provide great rates and satisfactory terms. To help you choose the right loan offer for you, we’ll break down how to use auto loan calculators and explain what factors could affect your monthly payments. What Is An Auto Loan Calculator?Auto loan calculators are tools that estimate your potential monthly payments when you’re looking to finance a vehicle. They can also help you determine how much you’ll likely pay for your new or used car overall. While auto loan calculators vary depending on the source, the following list includes the pieces of information you may be asked to enter.
From there, an auto loan calculator can help you understand which lenders are giving you excellent rates and which ones might be worth avoiding. How Does An Auto Loan Calculator Work?Below, we’ll explain how to get estimates of your monthly car payment amount by using an auto loan calculator. 1. Find An Online Auto Loan CalculatorIt’s critical that you find a car loan calculator offered through a reputable website. The key reasons to use an auto loan calculator are to determine fair car financing rates and to figure out how large of a loan you can afford. These are important pieces of information, so be sure to get answers from an accurate source. 2. Enter Basic Details About The Car LoanA legitimate auto loan calculator will ask you certain questions before offering an estimate. Below, we’ll look at a few of the most common:
3. Consider The Auto Loan Calculator’s ResultsOnce you submit the details outlined above, the calculator will create an estimate of your monthly payments. It’s smart to test out a few term lengths, as your interest rate could be much lower if you choose a shorter loan term. Your loan payments are made of two parts: the principal and the interest. The principal is the amount you borrowed for the car, and the interest is the amount you’ll be charged for using the loan. Avoid any result that leads to an “upside-down” loan, which happens when the loan balance is higher than the value of your vehicle. Car purchases that lead to upside-down loans are commonly associated with dealerships, so be careful if you decide to get financing from one. 4. Consider Factors Left Out Of Loan CalculatorsWhile auto loan calculators offer relatively accurate estimates, they typically exclude some important information. Consider the following pieces in addition to the estimates you find through an online loan payment calculator:
5. Reach Out To Auto LendersNow that you understand how much you might spend each month for the life of the loan, it’s time to consider car loan providers. Compare lenders and their loan offers to figure out which vehicle financing option is most appealing to you. What Are Typical Auto Loan Rates?Learning what interest rates other borrowers get when financing cars can give you an idea of how your credit history could affect your total loan costs. Below is data from Experian’s Q4 2021 State of the Automotive Finance Market report that reveals the average interest rates lenders give people in different credit brackets:
Those with poor credit scores almost always pay the highest rates for car financing. You may also notice that interest rates are considerably higher for those seeking used vehicles than for those looking at new cars. Car Loan Calculator: ConclusionAuto Loan calculators are helpful tools that help you understand what you can afford for car payments. While there are many different types of car payment calculators most will ask you for common information like the price of the car and your credit score. Once you understand what you can afford it is a good idea to shop around and compare options before committing yourself to a loan. Top Choices For Auto Loan ProvidersWe recommend reaching out to Auto Credit Express and LightStream if you’re shopping for auto financing. While they serve different types of borrowers, both companies offer quality car financing and relatively reasonable rates. Bank of America: Best For Bad CreditBank of America offers some of the best deals on auto refinancing for those with poor credit scores. The company does not have a minimum credit score requirement to receive an auto loan, making it accessible for more people than many other companies. Depending on your credit history and desired vehicle, you could find interesting choices from Bank of America regardless of whether you want to buy a car or refinance a car loan. RateGenius: Best For Good CreditIf you have a strong credit history, you may be eligible for an auto loan from RateGenius. The company’s minimum approval credit score is higher than most other companies in the industry, so make sure this option is right for you. RateGenius offers interest rates as low as 2.99% and average savings of around $96 per month for those whose applications are accepted by the lender. With rates like these, customers should with good credit should look to refinance their auto loan with RateGenius. Auto Loan Payment Calculator: FAQHow We Rate Loan ProvidersOur review process aims to deliver consistent and unbiased assessments of auto loan providers. While there are multiple qualities that make a loan company successful, our review team focuses on those we believe are the most important for consumers:
*Data accurate at time of publication. What is the interest rate you will pay for an auto loan Bank of America?Lock in your auto loan rate. Does Bank of America give good car loans?A Bank of America auto loan could be a great option if you're a Preferred Rewards client with the bank and can take advantage of the interest rate discount. Even if you're not, it could be a good fit if the car you're planning to buy meets the lender's standards and you're looking for a competitive interest rate.
Is Bank of America hard to get an auto loan?Lenders set their own requirements, but Bank of America's lowest rates are typically available only to borrowers with good or excellent credit (a FICO score of 690 and above). Borrowers with bad or fair credit won't qualify for the lowest interest rates. You can check your credit score before applying for a car loan.
Is 4.25 A good auto loan rate?Generally speaking, if your credit score is 700 or less, 4.5% APR is considered good. In fact, it's close to average for a standard car loan. If your credit score is above 750, you can likely find lower interest rates in the 2% to 3% range.
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