Scotiabank car loan calculator

What is the Scotiabank car loan calculator?

Having your vehicle means freedom, flexibility, privacy, and independence to be where you need to be regardless of the transport schedule. However, whether it's a new or used vehicle, the cost can exceed the savings. Still, that's no reason to turn down buying a car, as there are several auto loan options available from reputable lenders, such as Scotiabank financing.

Scotiabank offers up to $200,000 for your next vehicle and:

• up to 8 years or 96 months loan term;

• used cars can be purchased with loan funds, but should not be older than seven years;

• fixed or variable interest rate options for loans, etc.

• It analyzes your current plans for buying a vehicle and your loan commitment, which must be considered a destabilizing factor, etc.

Economic challenges have made conscious consumption and smart management of personal finances more popular. That's why more and more Canadians are taking several analytical steps, including car loan evaluation, before applying for a car loan. A car loan calculator is one of the analytical tools designed for this purpose. However, the results such a tool offers should not be considered a financial commitment by a bank because even though the results are accurate thanks to correct formulas used by developers and financial specialists, it is still an independent evaluation.

There are many positive aspects associated with using calculators for vehicle financing analysis:

• they are fast;

• all mathematical calculations and formulas are done for you by an online service;

• it is available around the clock and from any location, provided there is an Internet connection;

• you get preliminary monthly payment information before you go to the bank;

• it is a convenient tool when you begin your search.

But there are also some disadvantages of such a tool:

• it cannot take into account all the factors that affect the actual loan amount and cost. This information should be obtained directly from the lender;

• if you use the trade-in-vehicle option, you may not know the precise trade-in value of your car;

• the cost of the loan may include administration fees that are not embedded in a calculator.

The Scotiabank Car Loan Calculator is a tool to help you determine if a car loan is right for you. This tool combines convenient information about loan costs, car value, and other borrower expenses. It can be used if you have just begun your search or already comparing multiple options, including Scotiabank auto loan.

Local dealerships and partners of the bank keep customers informed about financing options not only by ads but also by using loan calculators for testing:

• interest rates (variable rate, fixed one);

• loan term;

• the amortization period of the loan;

• payment frequency (bi-weekly, weekly, monthly);

• loan amount depending on your financial situation (new vehicle VS used one) and ability to pay down payment based on vehicle price.

Scotiabank made a two-in-one car loan calculator available on its web page:

• Payment calculator;

• Maximum Credit Calculator.

The payment calculator shows the monthly installment for a car loan and calculates it based on the information about:

• price of the new and old vehicle (if you intend to use the trade-in option);

• information about your existing car loan (if any), showing your credit burden;

• information about the taxes;

• your interest rates expectation.

One could say that it is a bit more complicated in the case of trade-in because, without the services of a specialist, you will only know the approximate value of your car. If you are far from the correct assessment of the value and condition of your vehicle, you could be misled by the calculation results.

It is worth mentioning that the lender's final decision on approval depends on your risk profile and credit score, which the loan calculator does not check. The aThe bank specialist can only determine the actual interest rate and total cost of the loan.

Why do you need the Scotiabank car loan calculator?

Suppose you are considering purchasing a new or used car and would like to take advantage of a lender's financing of that purchase. In that case, you will need to weigh the pros and cons of borrowing, commit to a particular lender, and select one of the loan products offered.

There is a lot to consider, and most importantly, you need time to gather information and calculate.

Gathering information is something you should not neglect because a wrongly chosen loan, too high an amount of problems with the ability to service the loan, can cost you a lot regarding your credit score and the loss of the newly acquired vehicle.

The calculation part of your considerations can either be done manually if you enjoy math and take the time to do it, or you can "outsource" it and delegate the math to an online calculator. This tool will help you see the figures related to your plans and decide a reasonable option that best suits you.

You'll be able to test different terms, payment amounts, vehicle values, and repayment periods and change all the available variables involved in online calculations. It can be the first step towards credit approval because you have the information ready to discuss details, request pre-approval from the bank, etc.

How to use the Scotiabank car loan calculator?

The idea of "I need a new car" often leads the borrower to the next step: finding ways to do so. A loan is a popular way to cover insufficient funds for a necessary purchase, and the loan calculator is ready to help.

Once you have a general understanding of the vehicle cost, you can start entering the following loan details to get the results with the Scotiabank car loan payment calculator:

• the value of the car you want to buy;

• the value of the trade-in vehicle (if you're going to use such an option) or just leave 0;

• the balance of the existing car loan (if you do not have an outstanding car loan, just leave it blank);

• the down payment (you can even specify 0, but the actual option to do so can only be confirmed by the bank when you make an application or simply ask this question;

• the desired term of the loan (the maximum term is 96 months);

• the expected interest rate (it is possible to choose your variant, but of course, it is worth using the current and realistic interest rate on the market).

After that, you can simply click Calculate and get your results. If you want, you can make as many calculations as you need to see what your best option is.

The "Calculate my maximum loan amount" calculator asks you to provide the following information about the "new vehicle project":

• monthly payment amount;

• trade-in value;

• amount of down payment;

• existing loan balance (if any);

• provincial sales tax (check this before entering the data, as there is no list of provinces with the corresponding tax rates on the calculator page);

• expected interest rate and term of your loan.

This amount may not be 100% accurate compared to the one you will receive at the bank, as they will analyze your risk profile and creditworthiness when making your personal offer.