Use Online Car Loan Calculators For a Clear Picture on Auto Loan Rates

Online car loan calculators are available to determine monthly payment or even car purchase price. Online auto loan rate calculators are available for buying or renting cars. Such tools are helpful in finding out which is the better value to opt for. The only limitation of a car loan calculator is that it is liable to change, as the actual repayments are volatile. Car loan calculators are useful as the car loan payments should be calculated before hand and dealer costs for cars are to be looked up to save one from being deceived by banks and finance companies.

Monthly Installment Calculations

Calculators share general feature and most of them demand the amount of loan to be provided, and the number of installments for paying back. These help find out financial commitment involved. An auto loan calculator can be offered free on the internet as an excel spreadsheet download area.

The Three Factors Affecting Loan

In car loan calculation, it is important to estimate the monthly payments. Three basic factors to consider during car loan calculation are interest rate, total loan principal and loan period. This can calculate our budget and monthly payments. These factors are to be considered and it is as important as asking a loan officer or going online. Online lenders have a simple car loan calculator that is accessible from the website that will help determine the affordability.

The Loan Principal – In car loan calculation, the loan principal is the amount of money originally borrowed and the total interest charges at the end of the loan period depend on the amount of the loan principal and the loan period. The more principal borrowed, the more money will have to be paid back over the loan period. With each monthly payment, the total loan principal gradually deducted. For the first few months, a good percentage of the monthly payments are used to cover the interest costs. A small percentage is used to pay off the loan principle and as the loan matures, more payments will go towards paying the principal and less to pay the interest of the loan.

Interest Rate And The Loan Period – The calculators are available online to determine the loan tenure on entering the monthly installments and the interest rates. Interest rates vary with lender and it depends upon the credit scores of the borrower. Higher the FICO score lower the interest rates would be.

Types Of Car Loan Calculators Available Online

  • Free Car Loan Calculator – A net facility, for knowing the loan amount to be paid back.
  • Online Auto Loan Calculator – Online car loan calculators to find the best deal.
  • New Car Loan Calculator – To work on ideal monthly payments. There are certain calculators which can be used for a variety of uses like used car loans. In these calculators, the end-user can enter his own interest rate for his loan.
  • Affordability Check Calculators – Affordability check calculators help in arriving at a close approximation reckoning with the installment amount, insurance, fuel and maintenance. The most important decision is whether to buy a brand new or a used vehicle and to buy or lease. Car loan calculators are useful in hastening the decision to buy a car.
  • Drawbacks

    These web based calculators help calculating only the car price but not the affordability. Once the car is bought using a car loan, a person’s budget should add fuel and maintenance costs, which are not calculated. The calculators even miss out on calculating taxes and liens.

    Most lenders want people take out as much loan as possible, as it is profitable for them. Car loan calculations give an estimate of the total costs, which will determine affordability.

    Why to Get a Bad Credit Car Loan Now?

    None Should Be Discriminated When Getting a Car

    America is fascinated by cars and owning one gives a great amount of pleasure. To buy a car today, car loans are a pre-requirement. But, for a bad credit borrower, a car loan seems a distant dream. Do you have a poor credit score? Is getting an auto loan difficult for you? Are lenders constantly rejecting your vehicle loan application?

    Well, if the answer is yes to all the questions, this article can help you get an auto loan even with bad credit. In fact, after reading this piece of writing, you will understand why this is the best time to acquire a bad credit car loan to buy your dream car.

    Here’s Why Getting a Bad Credit Car Loan Is Easier than You Think

    Upswing In Vehicle Sales

    7.3million- That’s the total number of vehicles sold in the first half year of 2012! There has been a 14.8 percent rise in car sales since last year. This sale can be attributed to many factors like car manufacturers are pushing for car sales. Even European auto makers consider the American market profitable. They are vying for higher sales in America because of problems in their economy. With this new development, you can get newer car models and better incentive programs. Also, easy flow of credit has played a major role.

    Lowest Delinquency Rates

    The delinquency rate is the percentage of auto loans that have not been paid by the borrowers. TransUnion in its first quarterly report of 2012 mentioned that auto loan delinquencies are down to 0.36 percent which is very less compared to 0.46 percent – the fourth quarter result of 2011. These figures have proved that borrowers are more serious and diligent in making regular payments.

    TransUnion also mentioned that there is a rise in lending as well as leasing in the non-prime risk segment. With low delinquency rates, lenders are able to put more trust in the equation. They have now understood that people will definitely make payments. When the overall mood is positive, getting a bad credit car loan becomes easier.

    Investors’ Trust

    Investors are buying securities made up of car loans as they are comparatively safe and profitable. They fare better than home loans because cars are major requirement for us. We may give our home but a car is necessary for our employment. This makes them a safe bet. The recent example of this is how companies like GM Financial, Santander Consumer USA and other lenders have issued $ 10 billion of sub-prime car loan related ABS. This is a 20% jump from last year.

    This deal proves that auto lenders will now be offering more poor credit car financing options because it has become a lucrative option for them. They can easily bundle-up your loan as securities and earn from it. So, auto financing companies are now taking risks in offering sub-prime credit auto loans.

    All these factors lead to one conclusion that lenders are now interested in providing you bad credit car financing. It is no longer difficult to secure a loan. It is not difficult to buy your dream car anymore!

    Are You READY For A Bad Credit Car Loan?

    Before getting a car loan for people with bad credit, you must consider these important points so that you don’t doubt your decision later.

    1. It’s important that you choose an inexpensive yet efficient automobile. A used car is the most affordable option with you. It is a perfect choice because its depreciation rate is lower than new cars. While choosing a car, don’t forget to check its title. Get it inspected from your trusted mechanic.

    2. If this is your first loan after your score nosedived, you must be ready to pay a higher interest rate.

    3. Choose a shorter auto loan term so that you don’t increase any chance of an upside down auto loan.

    4. Regular payments are extremely necessary to improve your credit score and to avoid it from further deterioration. If you make on-time payments, you will get better interest rates next time.

    5. Most lenders have lock-in period during which you cannot refinance or trade-in your car. This is usually the first six months or the first year of the loan term. So, don’t choose any car loan that makes you uncomfortable because you will be stuck with it for some time. Take time to analyze and select a bad credit car loan quote.

    These significant cues are very crucial in reaching a good decision. You must understand that bad credit auto loans are easily available but you can make them more comfortable by remembering these points.

    Now that you know how easy it is to get a bad credit car loan, don’t wait anymore. Once you consider all the points mentioned in the above paragraph, you must embark on the journey of regaining your old good credit.