Car Finance Calculator

Use a car finance calculator to help you determine whether or not you can afford a car to start with.  Then it is handy to help you figure out almost exactly what your monthly payments will be, based on your down payment and/or trade in.

Finance calculators are handy when trying to decide between taking a cash rebate for a new car, or taking the low APR (Annual Percentage Rate). Because rarely will you be able to take both.

Take the 0% - zero percent interest car loan, for example. Sounds like a great deal at first, right? But let's look closer:

- For one thing, you'll have to agree to shorter loan terms - as low as 24 -36 months. 
- Qualifying is tougher too - less than 680 on your credit score and you won't qualify.
- You're limited to what's on the lot; ordering a car with your exact specs is not possible.
- No cash rebate.

If you finance your car through the dealership, you're leaving yourself open to the RISC or "Retail Installment Sales Contract." The way it works it like this:

The finance manager sends your credit info to the lender that they normally use. The lender sends back to the dealer the lowest interest rate that you qualify for - for that vehicle. The finance manager then marks up the interest rate and presents it to you.

...He isn't required to tell you how much it's increased. But this is one way the dealer makes money from you... as a matter of fact the F&I ("Finance & Insurance") Department at dealerships are typically bigger profit centers than the sales floor! So bear that in mind when you're thinking of financing your new or used car through them. Sometimes, however, financing through the dealer is the only option if your credit is not good.

So use a car finance calculator to get yourself educated on the smartest way to go about your new car loan.