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Vehicle loan calculator

Vehicle loan calculator online in 2022: assessment of the best vehicle loan in the USA online

Calculation according to the vehicle value
Calculation according to the loan amount
The best vehicle loan calculator
Vehicle loan amount
i

The amount you want to receive

USD
USD
3000 $
100000 $
Vehicle loan calculator Vehicle loan calculator Vehicle loan calculator Vehicle loan calculator Vehicle loan calculator
Vehicle loan amount
i

Vehicle loan amount

USD
USD
3000 $
100000 $
Down payment
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Specify the percentage of the down payment

%
$
0
50
Your vehicle loan amount
$
Vehicle loan term
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Specify the desired length of the vehicle loan

months
days
12
120
Interest rate
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Choose the interest rate on the loan

1 %
20 %
Type of payments
i

Specify the type of payment for calculating

Fill out an application for a vehicle loan online!
Fill out an application for a vehicle loan online!

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

What is a Vehicle Loan?

Vehicle loans comprise secured against the vehicle loans which the borrower intends to purchase. The vehicle serves as collateral, so if a borrower defaults on a loan, it will be repossessed. The loans are typically paid in installments.

Vehicle loans can be issued for both new and old vehicles. The latter entangles more risk for a lender, so they have higher interest rates. Vehicle loan is usually considered equivalent to car loan, yet there are recreational vehicles and motorcycles.

Direct Lending vs. Dealership

When it comes to auto loans, there are two types of financing available. Direct lending is a loan taken from a bank, credit union, or online lender. Once a borrower signs a contract, the loan is used to pay for the car. Dealership is provided by a seller of a car in the form of a car loan. Dealership financing is typically services by captive lenders associated with the manufacturer. The agreement is retained by a dealer, but often gets sold to financial institutions. Direct lending is more advantageous to a borrower as such loans offer competitive rates while dealership has fewer option.

Vehicle Rebates

Car manufacturers can provide vehicle rebates to attract buyers. The rebates can be taxed properly depending on the state. So, it sometimes can offer tax which is calculated on the original price of a vehicle. The states not issuing tax for cash rebate are Alaska, Arizona, Delaware, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Utah, Vermont, and Wyoming.

Typically, you can only get a cash rebate for a new car. Some car dealerships offer cash rebates for used cars, but it is because of the difficulty of determining the true value of a vehicle.

Trade-In Value

The process of selling a vehicle to a dealership to get credit for purchasing another one is called trade-in. It won't get you a large sum and has sales taxes calculated on a difference between the price of the next car and the trade-in value of a current car.

For instance, if you want to purchase a new car for $20,000 with a trade-in amount for your current car being $5,000, and the rate of 7%, your taxes will be: ($20,000 - $5,000) × 7% = $1,050.

Some stated son't provide reduction on the taxes. These states include California, District of Columbia, Hawaii, Kentucky, Maryland, Michigan, Montana, and Virginia. So, if you get a new car in such a state, your taxes will be: $20,000 × 7% = $1,400.

You get a $350 difference.It is not huge for this example, but sometimes, the difference gets significant, and you may better opt to sell your car privately.

Major Types of Vehicle Loans

Car Loan

Auto loan focuses on car financing. It takes the car you want to purchase as collateral for an auto loan, and if you fail to meet the monthly payments schedule, the car will be repossessed.

You can get a car loan from a financial institution, like a bank, credit union, online lender, or dealership. If you want to purchase a new car, you can estimate your interest rate will be slightly less than for the used car loan. The loan amount will depend on the car price and down payment, which is required by some lenders. The more you contribute a down payment, the less interest you will need to pay back.

RV Loan

RV loan helps you to finance a recreational vehicle. The most common RVs are travel trailers, motorhomes, pop-up campers, and fifth-wheels. RVs cost large sums, so it is generally more difficult to finance a recreational vehicle than make a car purchase. Therefore, this type of vehicle loans offers large loan amounts.

In addition to all the documents proving you're creditworthy, you will probably need to establish your plan to use an RV. Decide if you want to live in a vehicle full-time or recreationally throughout the year.

Motorcycle Loan

Motorcycle loans come with different interest rates and loan terms than auto loans. They can be taken from different financial institutions and can be both secured and unsecured. Unsecured loans have higher interest rates, and some lenders only allow to purchase a new motorcycle.

You can take a personal loan to buy a motorcycle. These are loans focusing on covering personal expenses and generally come with higher interest rate and lower loan amount. However, you will get money quickly.

How to Calculate Vehicle Loan Payments

To make assessments on your vehicle loan terms, you can calculate interest and monthly payment both manually and using a calculator.

Assuming you take auto loan, the interest you will pay over the loan term is based on the loan balance. Therefore, you will pay more interest at the beginning of the term, and it will gradually decrease.

To calculate your monthly payment on the interest rate, use the formula:

Monthly interest = (interest rate/12)*loan balance

To calculate your monthly car payment, divide the total loan amount and interest by the loan term. For instance, you have an auto loan amount of $20,000, and take it for 72 months at 5% interest. You first need to find the interest you pay for each month. Here, it is $3,191. So, your monthly car payment will be $322.

Generally, the longer you pay auto loan back, the more interest you will pay to the lender. The calculations don't include taxes, trade-in price, title fees and other factors. You will need to estimate them separately.

You can save yourself time and effort opting for auto loan calculator instead. Fill in the loan details like car price, down payment, trade-in-value, term length, annual interest rate, and sales tax. The calculator will give you an estimated monthly payment and the interest you will need to pay back. Car loan calculator is a useful tool to quickly determine if the loan suits your financial situation. However, you need to add here prepayment, origination, title, and other fees.

How to Compare Lenders Using Vehicle Loan Calculator

To choose the best lender for your vehicle, you will need to shop around. There are many offers for auto loans, RV loans, and motorcycle loans, so you will have a wide range of terms.

Go to the lender's websites and check their requirements and terms. Once you find suitable ones, look if they have a pre-approval option. Typically, with you can get pre-approved with all the online lenders. They will conduct a soft credit check which doesn't hurt your credit, and send you a message stating if they can offer you a loan and on what terms. Pre-approval doesn't mean you will actually get auto loan or other types of vehicle loans.

As you know the terms, you can estimate your monthly payments and interest. You can access an auto loan calculator if you purchase a car, and fill in the loan details of different offers. This way you will get the amounts of monthly payments and total interest.

Once you decided on a lender, and got your application approved, read through the agreement thoroughly. There will be stated fees and penalties if the lender issues any of them, so you will be aware of additional cost on your loan.

Is a 72-month car loan a good idea?

72 months is a common term for a car loan. However, interest accumulated on the loan balance over the loan life, and it will generally cost you more to borrow for longer. Instead, you need to aim for a shorter loan life and better interest rate. The optimal auto loan is a 60-month one.

How are vehicle loans calculated?

If you want to calculate your monthly car loan payment manually, divide the amount and the interest of a loan by the loan term (number of months within you should to repay the loan). You will need to know the total interest beforehand. Alternatively, you can use an auto loan calculator to estimate the cost of your loan.

Is 7 years too long for a car loan?

Yes. You better aim for a shorter loan life to pay less interest and save on the cost of the loan. The optimal choice is two to five years, depending on your financial situation and what expenses you can afford over the loan payment schedule.