A Tool to Make Car Buying Easier
Buying a car is a large investment so it’s important that you go into the car buying process prepared. One of the most important things to do before making any big investment is to have a clear understanding of what you can afford. The best way to do that you ask? Use a car loan calculator! A car loan calculator will tell you exactly what you can afford based on all the unique factors of your situation. In this article, we’ll explain how and why using a car loan calculator can help make buying a car easier.
How Our Car Loan Calculator is Different
The one thing that makes our car loan calculator different from other companies is we have two of them. We have one calculator that works to calculate your monthly payment based on the price of the car you’re interested in. Our other calculator works in reverse, where you plug in the amount you can afford to pay monthly over a given period of time and it then calculates the sticker price of the car you can afford.
What Information You Need to Know
In order to complete either one of our car loan calculators, there are a few bits of information you’ll need to plug in about yourself in order to get an accurate result:
- Estimated interest rate: The interest rate you qualify for is mostly determined by your credit score, so get a free credit check by Borrowell and plug in your interest rate accordingly. Check out our current rates page to see what rates Canadian lenders are offering.
- Down payment: How much are you going to pay upfront for the vehicle, lowering the cost of your monthly payments.
- Vehicle to trade-in value: The estimated value of your trade-in vehicle and if you have any remaining balance owed on that vehicle.
- Length of the loan term: How long do you want to make payments on this car loan? The longer the loan, the lower the monthly payments, but higher interest costs.
- Province: which province are you hoping to obtain the car loan in?
What You Know Now
If you used the “calculate my payment” calculator, you now know based on the vehicle you’re looking at, how much it will cost you per month. If you used the “calculate what I can afford” calculator, you now know exactly how much you can afford at a dealership in order to make your monthly payments manageable.