Auto Loan Amortization Calculator (2024)

Getting a car loan starts with an application to a bank or credit union. Typically, you'll need to provide them with some necessary information, such as the car's make and model you're considering purchasing and the loan amount you'll need. Some financial institutions will let you borrow more than the car's value so that you'll have some money to pay for taxes, title, and registration. Your lender will pull your credit report and determine whether or not they can fund your request.
You can also get a car loan from a dealership as most places have lenders that they use (or the manufacturer has a credit institution like Ford does with Ford Credit). However, loans from the dealerships may not match what you can get with your bank. Fortunately, our auto loan calculator will help you determine which one is better!

Refinancing a car loan involves paying off the old loan and starting a new one. As such, the process begins with an application to the bank. You'll need to provide some necessary information like the amount of your existing loan, the make, model, and year of your car, and your monthly income. The bank will pull your credit report to determine if you qualify and what your interest rate will be.
It's worth noting that typically, banks will only refinance car loans up to the amount that the car is worth. So, if you have a car worth $5,000 but owe $10,000 on it, you won't be able to refinance. Some banks will permit it, but it's often much more challenging than when you have a car worth more than the loan itself.

There are three ways to get out of a car loan: you can either pay it off, sell your car, or have someone else assume your monthly payments. The first option is self-explanatory. If you have enough to bring the loan balance to zero, you can wipe it out and get the title to your vehicle. However, if you don't have enough to bring the dollar amount to zero, you can sell your car. Assuming that you make enough to pay off the loan, you can sell it and pay it off or trade it in and have the dealer wipe out the balance. Finally, depending on your loan's structure and terms, you might be able to "sell" your car by letting someone else assume your monthly payments rather than paying you for the vehicle outright.

A "good" APR for a car loan depends primarily on your credit score. For people with good credit, the average APR was 4.96% for a new car purchase and 6.36% for a used car. However, it's not uncommon for people with bad credit to see double-digit APRs. It is worth noting that, unlike other assets like houses, cars depreciate. Therefore, the less you can spend on interest, the better it will be for your pocketbook in the long run. Fortunately, with our auto loan calculator, you can see how much your monthly payment will be, how much interest you'll pay, and how much your loan will cost!

Since cars depreciate, banks tend to be a little hesitant with giving car loans to people with bad credit. However, that doesn't mean that it's impossible. The key to getting a car loan with bad credit is to have a substantial down payment. Since cars depreciate so rapidly, a bank will find it much easier to finance an auto loan if you're coming with 20-30% down than if you want 100% of the car's purchase price. Since cars frequently lose a large part of their value the moment you drive them off the lot, having that down payment will help offset the bank's risk. If you have bad credit, the dealership might be the best person to help you since they often work with multiple banks and have experience getting loans for people of all walks of life.

There are three ways to pay a car loan faster. The first way is to add a little bit to your monthly payment. Even if you can add an extra $10 or $20 each month, that money helps shorten the amount of time you'll have the loan. The second way is to make payments more frequently. If you have an auto loan of $300 a month and receive biweekly checks, consider paying $150 with each check. By sending in the month faster, you'll allow for less interest to accrue, which could shorten the life of your loan. Finally, you can sometimes pay your loan quicker through a refinance. If you can find more favorable interest terms, you can often pay the loan faster!