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Auto loan calculator online in the Philippines in 2022. How to figure out an auto loan yourself?

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Fill out an application for an auto loan!

Take advantage of our auto loan selection system with **a free credit rating check**!

An auto loan allows someone to borrow money to acquire a car or truck. Auto loans are typically simple interest loans that must be paid back over three or five years. Since a car is often the second biggest purchase after a house, auto loans acquire a vehicle that can cost hundreds of thousands to millions of Philippine pesos more accessible by dividing the high price into monthly installments that fit different borrowers’ budgets.

An auto loan calculator is an online tool used to compute monthly amortization on your next new or used auto loan. Suppose only the monthly payment is given for any auto loan. In that case, you can use the monthly payments tab to compute the actual auto purchase price and other auto loan information, such as the monthly payment, amortization schedule, total interest, etc.

An auto acquisition comes with additional costs than the acquisition price. Furthermore, most of these costs are built into the financing of the auto loan or paying them upfront. Car buyers with low credit ratings may be forced to pay fees upfront. The following is a list of some of the most common car-buying costs in the Philippines.

**Purchase tax**. Most provinces in the Philippines collect sales tax on automobile purchases. If the car was purchased outside of the Philippines, it is possible to finance the cost of sales tax using the vehicle's value.**Document fees**. This is a fee collected by the automobile dealer for processing documents like title and registration.**Advert fees**. This is a fee that the regional dealer pays to promote the manufacturer’s automobile in their territory, and if not paid separately, advertising fees are included in the auto’s price.**Destination fee**. This is a fee that covers the shipment of the vehicle from the car manufacturers to the dealer’s office.**Insurance**. In the Philippines, auto insurance is a fundamental requirement to be considered a legal driver on public roads and is usually required before dealers can complete paperwork. Full coverage insurance is often required when a car is bought by loan and not in cash. Auto insurance can cost more than ₱50,000 a year for full coverage. However, most auto dealers can provide short-term insurance (1 or 2 months) for paperwork preparation so that new car owners can later secure coverage.

**Principal**. The principal is the amount you borrowed from any financial institution regulated by the Bangko Sentral ng Pilipinas, in other words, the cost of the vehicle you’re about to acquire.**Interest rate.**The lender (the bank or any other financial institution ) charges you this amount for lending you the money to acquire the vehicle. Current interest rates are expressed as an annual percentage rate.

A car loan, or auto loan, is a contract between a borrower and a financing institution under which the lender gives money to a borrower to acquire a car, on the condition that the borrower repays the lender with the principal and interest over a specified period, using the formula for an ordinary annuity. The formula to calculate auto loan payments is PMT = iPV / 1 - (1 + i)^-n

Where:

PMT = loan payment

PV = present value (loan amount)

i = interest rate expressed as a decimal

n = number of payments

An auto loan calculator also displays the interest you’ll pay over the life of the loan, and if it has an amortization schedule, you can see how much interest you’ll pay each month. With most car loans, part of every payment is directed towards the principal (the amount you borrowed) and part to the interest, which is calculated based on the then-current balance of the loan. In the early days of the loan, when the balance is higher, you pay more interest, but as you pay off the balance over time, the interest portion of the monthly payment becomes smaller. You can use the car loan calculator to calculate how much interest you owe or calculate it yourself if you are into math. Here’s the standard formula the calculator uses, or if you want to compute your monthly car loan interest by hand; MI = (i/12) x LB

Where:

MI = monthly interest

i = interest rate

LB = loan balance

**Example.** Assuming you have a loan balance of ₱300,000, which also is with a 6% interest rate, the monthly interest can be calculated using the formula MI = (i/12) x LB:

i = 6/100 = 0.06

LB = 300,000

Substituting these data into the formula, we have:

MI = (0.06/12) x 300,000

MI = 0.005 x 300,000

MI = 1500

So monthly interest is ₱1,500

Firstly, fill in the **Price of the car** field in the calculator, which is the final price of the car you wish to buy. In the simple mode, the **Loan amount** value in the field is automatically filled in the calculator — the same value as the **Car’s price** field. If you choose the advanced mode, you can enter additional information that will help you estimate the amount of money you need to borrow, including the amount of money you have, your trade-in value, and your sales tax. In the next step, choose the payback period (loan term), which can be expressed in years or months but is usually a multiple of one.

The actual results of the calculation will appear in the **Monthly payment** field immediately following the input. This is the amount you will be required to pay monthly to pay off your debt. The value in the field **Total interest paid** shows the total cost of your loan over the entire period. Do you think the estimated monthly installments are too high, or, perhaps, you believe that you could afford higher monthly installments? In the calculator, try changing some values, such as extending the loan term, which will result in lower monthly amortization. In the same way, a lower interest rate will lead to lower payments, but bear in mind that the interest rate depends primarily on the lender’s offer.

Automobile manufacturers may offer a cashback rebate or low-interest rate as part of a car purchase, but these offers are often mutually exclusive. Taxes and fees for car purchases within the Philippines only apply to the calculator. The calculator can still be used in other countries, but you’ll have to modify the inputs accordingly.

You could be offered cash back bonus or a lower interest rate when buying a car. This calculator shows you the cost of either, comparing savings totals. You can also enter a trade-in value by entering the car’s price, down payment, loan term, and interest rate (not the low offer rate). When you’re done, you’ll know which offers cost you more, the predicted amount, and how much you could save. For instance, let’s use this tool to calculate the better offer with the following input:

Cash back amount = ₱10,000

Interest rate (high) = 4.5%

Interest rate (low) = 4%

Auto price = ₱250000

Loan term = 60 months

Down payment = ₱50,000

Trade-in value = ₱5,000

Sales tax = 7%

Title, registration, and other fees = ₱3,000. Click on

**Calculate**, and you will get the following outcome: the low rate will save you only ₱1,464 in interest, yet the cashback is ₱10,000.

**With cashback offer**

Total amount = ₱185,000.00

Sale tax = ₱17,150.00

Upfront payment = ₱70,150.00

Monthly pay = ₱3,448.96

Total of 60 loan payments = ₱206,937.51

Total loan interest = ₱21,937.51

Total cost (the car price, interest, tax, fees) = ₱282,087.51

**With minimum interest rate offer**

Total amount = ₱195,000.00

Sale tax = ₱17,150.00

Upfront payment = ₱70,150.00

Monthly pay = ₱3,591.22

Total of 60 loan payments = ₱215,473.31

Total loan interest = ₱20,473.31

Total cost (price, interest, taxes, fees) = ₱290,623.31

So, according to the tool, the cashback offer is better in this case.

A lease is a contract in which one party transfers property to another for a specified period in return for a periodic payment. A car lease allows a person to drive a car for a fixed period provided that they make a down payment and monthly lease payments until the lease ends. Moreover, car leases are often longer than car rentals, and many leases include a purchase option agreement. This deal allows the owner of the leased vehicles to buy them outright at a specified price once the lease ends. A small amount will increase the lease payment if you add this feature at the start of a lease. Most leases are available at car dealerships or private car dealers. Some variables that are required to calculate the monthly lease on any vehicle are:

**Auto price.**It is also known as capitalized cost and is the vehicle's retail price. This amount can be negotiated for a less expensive lease (using the same technique as buying cars). Many experts have even suggested that it is best to treat negotiations with car sales associates as if one were purchasing the car outright. A potential lessee should only reveal that they intend to lease the vehicle rather than acquire it when the desired price is reached.**Money factor**. This is a different interest rate, used exclusively in the context of car leases. Lessors use the money factor to find lease rates compatible with each lessee’s credit. The less-than-perfect credit score of the lessee raises the cash factor, and the lease becomes more expensive. To compute, divide the lease’s APR by 24 or 2400, depending on whether it is expressed as a decimal or percent.**Residual value**. The residual value of a vehicle is the value it can be purchased for at the end of the lease. Less commonly, residual vehicle values are determined by the financial services that issue lease contracts, not dealers. It estimates the car’s value at the end of the lease period. The difference between price and its residual value is used to depreciate the vehicle, which is amortized over the lease term. Because these vehicles are not known to depreciate quickly, auto leases tend to be cheaper.**Lease term**. This is the length of the lease, most leases run between a period of 2 to 4 years.

For example, you take a leasable car for 3 years and have an agreed-upon value of ₱250,000 after negotiations on the auto price, which is the capitalized cost. The lender for the lease has placed a residual value of ₱125,000 on the car after the 3 years and has given the lessee an APR of 6% after a ₱50,000 down payment. Let’s say the down payment is solely to reduce the capitalized cost and not as payment for any upfront charges. For clarity, assume that all charges are rolled into the auto price. The lessee is also willing to swap in a used car valued at ₱20,000, and the transaction occurs with a 6% tax rate.

First, find out the true figure for the capitalized cost. To do this, subtract any trade-ins or down payments from the agreed-upon value of the car. If there are no trade-ins or down payments made, use the original agreed-upon value of the vehicle: ₱250,000 - ₱50,000 - ₱20,000 = ₱180,000

Then subtract the residual value that the financial institution supplies: ₱180,000 - ₱125,000 = ₱55,000

This is the amount that needs to be amortized over the lease term. Divide this by the term, which is 36 months, to get the monthly depreciation: ₱55,000/36 = ₱1527.78

Next, convert APR into money factor: (6/100)/24 = 0.0025

Now, add the capitalized cost and residual value, then multiply by the money factor to get the monthly interest charge: (₱180,000 + ₱125,000) × 0.0025 = ₱762.5

Now, add the monthly depreciation and the monthly interest. After that, multiply this figure by the levy rate to get the monthly taxes amount. If there is no sales levy, ignore this step: (₱762.5 + ₱1527.8) × 0.06 = ₱137.4

Finally, add all the three charges together, which will now let you arrive at the monthly lease payment amount: ₱1527.8 + ₱762.5 + ₱137.4 = ₱2,427.7

There are many advantages of using the auto loan calculating tool. Some of them are:

**It saves time**. Without a car loan calculator, it isn't easy to work out accurately the loan amount, monthly amortization, interest rate, and loan term. It is also very time-consuming. The calculator is a simple, reliable tool that will save you time (because the process is very fast) that would otherwise be spent on complicated loan calculations.**It helps save money**. With an estimated loan amount, interest rate, and term calculation, you can compare multiple lending options and select the best for you. Ensure that your car’s monthly amortization fits into your financial plan.**It helps you to know a better option**. If you know the estimated loan cost and other details, you can choose the most suitable option. Many auto dealers offer multiple car loan options and try to sell the one with the highest interest rate, especially when you have limited knowledge. First, evaluate all the options available and choose the one that best suits your needs.

You only have to input all your data in digits. There are not too many special functions in an auto loan calculator. Apart from the Philippine peso and the percentage symbols, everything is straightforward. But here are some terms that are worth some explanation:

**Auto loan amortization schedule.**The auto loan amortization schedule records your loan remittance, which lists principal and interest rates for each payment. It shows all remittances until the end of the term of the loan period. It could be shown monthly or yearly.**Down payment**. A down payment is a large sum of money paid by a buyer in the early stages of purchasing a vehicle based on their budget. The down payment makes up a portion of the total purchase price, and the buyer may need to take out a loan to pay the rest.

Imagine you want to buy a brand new vehicle worth ₱1m, but you can only afford half of that amount. You are planning to get a loan to cover the rest of the payment based on your budget. The particular financial institution offers you a 5% interest rate on a 48-month term. Now let’s input the data into a loan calculator like this:

Loan amount = ₱500,000

Loan term = 48 months

Interest rate = 5%, and click on Calculate, to get your result like this;

Your estimated monthly payment = ₱11,510

Total principal paid = ₱500,000

Total interest paid = ₱52,700

Suppose you wish to purchase a vehicle that costs ₱320,000 after levies. The trade-in value of your current car is ₱100,000, and right now, you only have enough saved to make a down payment of just ₱20,000, which means you will be financing the remaining ₱200,000. The financial institution you are working with has offered you a fixed interest rate of 5.0% annually on a 60-month, ₱200,000 loan. So, now, we will use the standard annuity formula shown above to compute each monthly payment. The present value here is ₱200,000, which is the loan's value. The annual interest rate is 5.0%, so the monthly rate is 5.0% divided by 12, which is the number of months in a year. The number of auto loan payments is 60. The work to compute payments, which is the same one the calculator uses, is shown below:

The given data are:

PV = 200,000

i = 5/100/12 = 0.05/12

n = 60

Substituting into the formula PMT = iPV / 1 - (1 + i)^-n, we have:

PMT = 0.05/12 x 200000 / 1 - (1 + 0.05/12)^-60

PMT = 0.004166 x 200000 / (1 + 0.004166)^-60

PMT = 0.004166 x 200000 / 1.004166^-60

PMT = 0.004166 x 200000 / 0.7792

PMT = 833.2 / 0.7792

PMT = 1069.3018

This means that you will pay ₱1,069.30 for your brand new car every month.