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How is a Car Loan Calculated?
June 18, 2019
Luckily, we have a dedicated team of professionals here at Macon Car Credit ready to help our drivers in Macon, Warner Robins, and Milledgeville each step of the way when you get to this stage. We can get you an auto loan for your new vehicle that results in a monthly payment within the budget you have set.
There are many details that need to be considered as you are shopping for a new car. The obvious decisions will be what model, trim level, and even color you want for your new car. There are also other factors that go into your car-shopping experience, like the financial aspect.
Exactly how are car loans calculated? To help you understand how a car loan works and how to estimate your payment with a car loan calculator, keep reading below.
Understanding What a Car Loan Is
Essentially, a car loan is you borrowing money to purchase the vehicle you want. When you buy a car, you will put a down payment on the car, usually a percentage of the car’s total cost. This means you’ll still need help to pay for the rest of the car’s value.
This is where our finance experts will help. They have a network of lenders to help get you a loan. This car loan will cover the rest of the costs up front on your new vehicle while you pay back the lender over a set period of time with interest.
Calculating Car Loans
When we work on acquiring you a car loan, we will detail the various terms of your loan. There are a variety of factors that determine how your car loan is calculated.
Amount of the Loan: Depending on the down payment you make on the car, the value of your loan may vary. If you put down 20% of the purchase, your loan will make up the other 80%.
Length of the Loan: When getting an auto loan, there are various lengths of time you can have to pay back your loan. Longer terms will result in a lower monthly payment but can
add up the amount you spend over time due to interest.
Interest Rate: Also known as the annual percentage rate (APR), the interest rate is the percentage you will owe for borrowing the money. By using various lenders, we can help get you the lowest interest rate possible for your new car.
All of these will factor into how much you will owe monthly to pay back your auto loan.
Estimate Your Payment with a Car Loan Calculator
Before you even meet with our finance team here at Macon Car Credit, you can start to get a sense of what your car payments will look like with auto loan calculators. Use this helpful tool to look at what potential monthly payments you might have with the specific car you want to drive around Macon, Warner Robins, and Milledgeville.
With the car loan calculator, you can change your down payment, interest rate, and length of your term. By being able to alter each of these factors, you can see which combination will result in a monthly payment you’ll be happy with while staying on budget with initial costs up front.
With our tools online and team of experts within our finance center, we are ready to get you inside the car you want with an auto loan that leaves you satisfied.