Car loan assessment

How to calculate a car loan?

To calculate your monthly car loan payment by hand, divide the total loan and interest amount by the loan term (the number of months you have to repay the loan). For example, the total interest on a $30,000, 60-month loan at 4% would be $3,150.

What is a good APR for a car?

The average APR for a car loan for a new car for someone with excellent credit is 4.96 percent. The average APR for a car loan for a new car for someone with bad credit is 18.21 percent.

How accurate is the auto loan calculator?

Payment calculators are great at giving you an estimated amount that you will pay for a car. But they don't give you an exact amount. The exact amount can vary heavily if you over or underestimate the amount of interest you are paying on a car or the amount the car will cost.

What is a good credit score to buy a car in South Africa?

To qualify for a car finance in South Africa, you need to have at least a minimum credit score of 580 and 669. Your credit score rating is fair and you are considered to be a subprime borrower and the dealership will consider your car application.

How do car loans work?

When you secure a car loan from a financial institution, you borrow the money required to purchase the car and pay it back over time with an annual...

What’s the term on a car loan?

The car loan term is the length of time that you’ll be paying back the amount of money you borrowed. This typically ranges from 12 to 84 months in...

What’s the interest rate on a car loan?

The car loan interest rate is an annual percentage of the amount of money that you finance. It serves as the price you pay for borrowing money from...

What’s sales tax on a car purchase?

Sales tax is a percentage of the car price that you owe to your state. Be sure to research how sales tax works for car purchases in your state – so...

What's the trade-in value of a car?

A car’s trade-in value is the amount of money that a dealership is willing to pay for your car when you purchase a new one. Be sure to follow these...

Where can I get a car loan?

Car loans are available through several institutions, including automakers, credit unions, banks and financial companies.

Can I pay off a car loan early?

You typically can pay off a car loan early if it makes sense for your situation but be sure to check your financial documents first to ensure that...