Calculating Your Car Loan

Calculating your car loan is not nearly as difficult as you may think. I am going to walk you through how to you use the Car Loan Pal Loan Calculator to compute your estimated monthly payments.

1. Enter the purchase price of the car you intend to buy including any tax, title, and license fees.

2. Enter the amount you intend to use as your down payment on the new or used car loan.

3. Input your estimated trade-in value. If you are unsure of what this may be you can get an estimate at KBB.COM.

4. Enter your estimated interest rate. The typical car loan rate at the time of this article was around 7% but this will differ based on location, credit score, and other factors.

5. Include your desired loan length. Typically this will be 48 months, 60 months, or 72 months. The longer the loan, the smaller the payments, but you will pay more over time.

I suggest trying different values to better set your expectations for a monthly loan amount. Calculate your Car Loan payments and get ready to get your new car!