How to Calculate Car Loan Payments

May 30th, 2014 by

Auto FinancingWhether you are looking for auto financing near Plainfield or considering refinancing your current vehicle, you need to learn how to calculate car loan payments. Don’t worry, you don’t have to do the math yourself (unless you want to), but there are a few things you’ll have to determine before you can grab a car loan calculator online.

Determine the Overall Amount Being Financing

First, you’ll need the approximate value of the car you’re interested in, then:

  • Deduct the Trade-in Value: you can value your trade on our website to get an estimate.
  • Add the State Sales Tax
  • Factor in the Down Payment: this is how much you’ve put aside to spend on the car up front.
  • Rebates and Special Offers: take a look to see if there are any special offers on the vehicle you may have missed.

Loan Terms and Calculating

The last part of the equation is the loan terms. This is the interest rate you’ll be paying and the term of the loan. Auto loans are usually broken into 24, 36, 48, and 60 month durations. You’ll receive this information from us, or you can estimate based on the current market interest rates.

Finally, grab an auto loan calculator from the internet (just do a quick Google search). There you’ll be able to input all of this information and determine your monthly loan payments.

Lower Your Monthly Payments at River View Ford

Are you already financing your car? At River View Ford, we can help you lower your monthly payments and get a better car. The way it works is we pay off the rest of the amount you owe on your current car and take it as a trade in. Then we get you behind the wheel of a newer car with a lower monthly payment. You can cut down on your monthly bills while making an automotive upgrade. Reach out to us today to see what River View Ford can do for you!

Posted in Auto Financing