Car loan calculators
Car loans have gained good importance in past few years with many people fulfilling their dream of having a car by means of car loans. These loans are provided for buying new as well as old cars. Car loans are required to be paid back along with interest in agreed time period and in stipulated manner. If a person is not able to repay car loan in time, lender can also take possession of car and can sell the same for recovering its amount. Thus, it is very important that a person confirms he would be able to repay the car loan in time. This objective can easily be fulfilled through car loan calculators. Car loan calculators are the devices that help a person in calculating monthly obligation with respect to car loan and in calculating many other variables. Car loan calculators have been successful in providing reasonable approximation of monthly payment for any obtainable loan amount.
Advantages
There are many advantages of using and taking decision of car loan through this calculator. First of all, a person is able to get the amount that he is required to pay for repaying car loan. If this amount is more than what can be afforded by him, he can reduce the loan amount. This helps him in avoiding future action taken by the lender like repossession. Second advantage of car loan calculators is the selection of best car loan lender. Each lender has its own interest rate at which it provides money for buying car and this varies significantly.
Cost of car loan depends heavily on the interest rate and thus, it becomes very important that a person chooses a lender with lowest cost. This objective is also fulfilled by the car loan calculator. One important aspect that must be understood here is that there are some lenders that have low interest rates but high loan cost. This happens because of the fact that they apply high charges and fees. Thus, it is always advised that while choosing lender by means of car loan calculators, a person should use APR or annual percentage rate, which includes interest rate as well as other charges. Other advantage of using car loan calculators is that a person can easily adjust loan amount and repayment period as per his income. This helps him in repaying car loan as soon possible.
Finding and using car loan calculators
Finding car loan calculators is very easy as there are many web sites that provide these calculators. For example, Bankrate.com is one such web site. These web sites also help a person in choosing the cheapest lender around by using zip codes. It has also been observed that web sites of most of car loan lenders and broking institutions also contain car loan calculators. For getting results, there are some information that have to be punched in the car loan calculators. First is the loan amount. The amount a person intends to take for buying car is to be provided. A person can adjust this amount as per his present and future income. Second field that has to be filled is the down payment percentage or amount. Most of car loan lenders allow a person to make some down payment, which may vary up to 20% and this also impacts the monthly obligation.
If a person is suffering from bad credit, down payment requirement shall definitely be there. By increasing the down payment, a person can reduce the monthly obligation and can make repayment in an easy manner. Third field is the interest rate. This is the rate charged by the car loan lender for providing money. As said above also, a person should use APR rather than interest rate for making calculations. Once all the above fields are filled, a person is required to click the calculate button and results are displayed in front of him in no time. Results show monthly repayment amount towards interest as well as principal, total amount repaid by a person over the whole loan period including interest as well as principal, monthly loan outstanding etc. It is important to understand here that a person can also choose the best lender by comparing the overall loan amount repaid by him in fixed time period. This comparison can be done side by side and thus, choosing the cheapest lender is easily possible.
Fields mentioned above are common ones that are contained in all the car loan calculators. There are also some sources that provide different types of car loan calculators that provide different results. For example, calculators.aol.com is a web site that provides 11 types of auto loan calculators that help a person in taking informed and right decision. Through these car loan calculators, a person can easily make up which car can be afforded by him and whether he should go for new or used car. Car loan repayment period can also be calculated in a comprehensive manner. Other decisions that can be taken include leasing or purchasing of car, financing or paying cash for car, using home equity or car loan, choosing rebate or special dealer financing, etc. These car loan calculators also take into consideration the depreciation amount over a period of time and provide results accordingly.
Autofinancing123.com is also one of important web sites that provide car loan calculators. These calculators are one of easiest to use and loan parameters that are required to be filled are loan amount, loan length, annual interest and payment periodicity. A person can easily calculate payment at weekly, monthly, quarterly, 6-monthly, or annual rests. This web site also allows a person in getting free, no obligation car loan quotes from leading lenders in the nation.
