How Much Car Can You Afford

Written by Brady    Tuesday, October 20 2009

Previously I discussed how to use the Online Car Loan Calculator, now I will walk you through the How Much Can You Afford Calculator? This calculator is a reverse calculator that allows you to estimate how much car you can buy based on the loan terms you desire.

1. Enter the monthly auto loan payment you desire. Keep in mind that the lower the payment you will typically need to have a longer auto loan term and lower interested rate to be able to afford a more expensive car.

2. Input the amount you plan to use as a down payment on your auto loan.

3. If you have a trade-in, enter the value of your vehicle. If you are unsure of the estimated trade-in value you can use a resource such as KBB.

4. Enter your anticipated interest rate for the auto loan.

5. Input the length of your loan, this will typically be 48, 60, or 72 months.

Submit and the calculator will tell you the amount of car you can afford, including any fees such as tax, title, and license. Good luck getting your new auto loan!