[ad_1]
If you’re thinking of paying off your car early, our car payoff calculator can help you decide if it’s a good idea. The payment calculator will show you the total interest you can save by paying off your car early and when you will finish paying off your loan. Please note that some car loans have a prepayment penalty, which the calculator does not take into account.
In this article, the Home Media Review team will show you how to use the Auto Loan Payment Calculator to help you decide what to do.be sure to check best auto loan interest rates If you are in the new car market.
What is a car payoff calculator?
Use our car payoff calculator to see what happens when you increase your monthly car payment. Online calculators usually ask for many variables, such as:
- interest rate
- Remaining borrowing period
- Borrowing balance
- additional monthly payment
What can a car payoff calculator tell me?
Use our car payoff calculator to see the effect of increasing your monthly car loan payments. For example, if you pay an extra $100 each month, the calculator will determine how much that will be over time and how it will change your due date.
The car payoff calculator will also tell you how much interest you can save. Interest accrues over time, so the sooner you pay off your loan, the less you pay.
Note that paying extra for a period of time does not change your actual monthly car payment. Just pay off the loan early and save interest.
How to use the car payoff calculator
To use the car payoff calculator, enter your loan information and expected monthly additional payments. Then you’ll know how quickly you can pay off your loan and how much interest you can save.
Information required to use the automatic loan calculator
Different calculators may ask different questions about loans. Still, we recommend gathering the following loan information for accurate results:
- Borrowing amount
- total payment period
- Remaining months on loan
- Borrowing balance
- interest rate
- Current monthly payment
- extra amount due each month
Example of a car loan payoff calculator
Below is an example of the payoff information for a $20,000 loan with 36 months remaining and an additional $100 monthly payment. These additional payments will help you pay off your loan seven months sooner and save you over $200 in interest.
Make one large additional payment
What if you want to make a large one-time payment on your car loan? Most auto loan repayment calculators calculate additional monthly payments instead of one lump sum payment. However, you can find an estimate by doing your own calculations.
- Write down your remaining months and your current balance.
- Write down your current monthly payments.
- Subtract the lump sum from your current balance.
- Divide the remainder by your monthly payment.
- The result is the approximate number of months it will take to pay off the loan.
As an example, let’s say you have $12,000 left on your loan with 36 months left on it. Payment is $333.
Now let’s say you want to pay an extra $4,000 this month. Subtract that from her remaining $12,000 to get $8,000. Then divide this $8,000 by your monthly payment of $333. This gives us 24. This is the number of months it will take him to pay off $8,000 in payments. That means you’re ending your car loan 12 months early.
Of course, this is a rough estimate and does not take into account your current monthly payment or any upfront penalties that may be included in your loan disclosure.
Should I pay off my car loan early?
there are several reasons pay off car loan earlyFirst of all, it’s nice to get rid of monthly payments. Enjoy complete vehicle ownership in no time.
Another reason to make additional car loan payments is to save on interest. This effect is more pronounced when interest rates are high or when additional payments are initiated early in the life of the loan.
If you don’t pay off your car early
If your loan includes an upfront penalty, you may not want to pay off your car early. This is a fee that some lenders charge if you want to pay off your debt before the loan term ends, so you should weigh this fee against the interest you save. This is one of the reasons why using a car loan calculator for early repayment can be helpful.
average car loan interest rate
The amount of money you can save with Early Payoff depends on your Annual Percentage Rate (APR). If interest rates are high, you can save even more by paying off the car before the loan term ends.
According to Experian Q2 2022 Auto finance market situation According to the report, the average interest rate on new car loans is 4.33% and the average interest rate on used car loans is 8.62%.Below you can see the average Auto loan interest rate by credit score.
Factors Affecting Auto Loan Interest Rates
Various factors affect the annual interest rate you find. These include:
- credit score
- payment history
- Debt-to-income ratio
- credit mix
- vehicle value and down payment
- loan duration
Car Payoff Calculator: Conclusion
It’s a good idea to pay off your car loan early if possible. A car payoff calculator will show you how quickly you can pay off your loan and how much you can save on interest. Check your loan documents to see any prepayment penalties. This is because they can offset the benefits that you get from early repayment.
auto loan recommendations
If you are looking to buy a new or used vehicle, we recommend comparing renders to get the best rates. This is also useful if you plan on going to a dealer as it can give you leverage to negotiate a better rate. Two of our top picks are myAutoloan and Autopay.
MyAutoloan: Best Low Interest Option
April start: New car loan is 3.69%
loan amount: $8,000 to $100,000
loan terms: 36-84 months
Better Business Bureau (BBB) ratings: Certified A+
Auto loan comparison site myAutoloan can offer up to 4 offers at a time. The company offers refinancing in addition to new and used car loans. private party When Lease Buyout LoanMyAutoloan new car loan interest rates start at 3.69% for loans from 37 to 60 months. Best automatic refinancing rate Starts at 1.99%. MyAutoloan has an accredited A+ rating from the Better Business Bureau (BBB).
keep reading: My Auto Loan Review
Autopay: the most balanced
April start: 1.99%
loan amount: $2,500 to $100,000
loan terms: 24-96 months
BBB rating: A+
Autopay works with a wide network of lenders, including credit unions and banks, to provide loans to a wide variety of drivers.On the auto loan comparison site, vehicle purchase loans and car loan refinancing, and interest rates for borrowers with the highest credit quality start at 1.99%. Autopay has an A+ rating from the BBB with a customer review score of 4.3 out of 5.0 stars.
Car Payment Calculator: Frequently Asked Questions
our methodology
Consumers trust us to provide objective and accurate information, which is why we created a comprehensive rating system to develop a ranking of the best auto loan companies. We have collected data on dozens of loan providers to rank companies on various ranking factors. The final result is an overall rating for each provider, with the company with the most points at the top of the list.
The factors that our rating takes into account are:
- Reputation (30% of total score): Our research team considered the ratings of industry experts and the years in business of each lender in giving this score.
- Availability (20% of total score): Companies that cover a range of situations are more likely to meet borrower needs.
- Loan details (15% of total score): To determine this score, we considered the loan types, terms, and loan amounts available from each lender.
- rate (25% of total score): Low Annual Interest Auto Loan Providers scored highest in this category. Available discounts were also taken into account.
- Customer Experience (10% of total score): This score is based on customer satisfaction and transparency. We also looked at the responsiveness and helpfulness of each lender’s customer service team.
*Data is as of the time of publication.
[ad_2]
Source link