Auto Loan Calculator
This is a fixed interest loan calculator specially customized for auto loan with down payment, trade-in value, and sale tax considered. This auto loan calculator can give out the monthly payment, total payment amount, interest, and monthly amortization schedule of a one time auto loan. For the best use of this auto loan calculator, please add the destination fee, registration fee, and other cost into the auto price.
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Beside all cash, the two other ways of purchasing a vehicle are via auto loan and via lease. Lease normally is available for new vehicles only in the United States. In lease-end, the buyer normally have the option of either returning the vehicle or buy out. Normally, the monthly lease payment is lower than monthly loan payment since the buyer is only paying for the vehicle's depreciation. However, the total cost of lease then buy out is higher than purchasing with auto loan. Please use our lease calculator to compare.
Auto loan normally can be approved for both new and used vehicles. In the United States, buyer can get a loan pre-approval from a lender then purchase from a dealership or other source. Yet, most people will apply for the same day auto loan from the dealership directly right after the purchase decision. Normally an auto loan is secured by the vehicle. This means the lender is the lien (title) holder of the vehicle until the loan was paid off. Being the lien holder, most lenders have some requirements, especially insurance requirements, that must be met. The borrower is also responsible for keeping the vehicle in good condition. If fail to meet these requirements or make the payment, the lender can repossess the vehicle without the permission of the borrower.
When purchasing a vehicle with a loan, the borrower should be prepared to pay the up-front costs at the day of purchase, which include a down payment, taxes, registration fees, and other charges.