Monthly Car Payment Calculator – Auto Loan Calculator with Trade-In
Welcome to Sweeney Cars, your home for all your automotive needs from Warren, Ohio, to Elwood City, Pennsylvania. If you’re in the Youngstown, Ohio, area and want to buy a used vehicle, Sweeney Cars can help make the process hassle-free — and for less money than you might imagine. We’ve streamlined things with our online application and other tools to help you budget appropriately.
We understand that buying a used vehicle has its challenges. Understanding how your auto loan works can help you better plan for purchasing a car, truck, or SUV. We want you to buy your dream vehicle with all the features you deserve that also fit your budget. That’s why we’ve put together this guide to auto loans, particularly those involving trade-ins, to help you make an informed decision.
How Do I Calculate My Monthly Payment?
Many variables can change your monthly loan payment, but the most significant would be the actual sales price of your vehicle. Your interest rate also directly impacts where your payment ends up. From there, how much money you put down lowers the monthly payment. How long the loan runs can make the payment higher on shorter-term loans and lower on longer-term loans.
Fortunately, knowing how to calculate auto loan payments isn’t necessary. Many online tools exist to help you calculate your monthly payment. At Sweeney Cars, you can use our Monthly Car Payment Calculator to help you determine your potential payment using various factors you set.
Factors Impacting Your Monthly Payment
To answer the question of what factors can impact your monthly payment, you need to understand every aspect of your auto loan. Many factors of your loan beyond the sale price impact your monthly payment, ultimately determining what you can afford.
Your credit score directly impacts the amount of credit you qualify for, as well as the interest rate. You might be eligible for a $20,000 loan at a 3% interest rate with excellent credit, or you might only get a 6% loan for the same amount with poor credit. We recommend checking your credit score before applying for any loan. This information can prepare you for what to expect to receive once you do apply. If you have poor credit, you can take steps to improve your credit score that will save you money.
The lower the interest rate, the better the loan. Credit scores range from 300 at the low end and 850 at the high point. A person with a credit score above 779 can expect the best interest rates. A person at 300 will qualify for the highest interest rate if they get approval at all. Most people fall somewhere in the middle. Rates vary by lender but generally stay close, though it doesn’t take a big jump in your rate to cost you a lot more money.
You should check your credit and research different loans with your bank or credit union and other lenders to see where current rates are before shopping for a car. You want to know what you can afford to avoid any disappointment.
Any trade-in vehicle also affects the amount you borrow. The value of your trade gets taken off the amount you have to borrow, thus lowering your monthly payment. You can quickly check the value of your trade using several online companies that provide this service for free. Keep in mind that you’ll get a reasonable estimate based on year, mileage, and condition, but the dealership makes the final offer. At Sweeney Cars, we pay top dollar for your trade-in, and in many cases, we will buy your car even if you don’t buy another one from us.
You also have to remember the dealer will pay you the wholesale or Blue Book value, not the resale value. Blue Book value refers to what a dealer will pay for a given vehicle, while the resale value would apply to any sale by you or a car dealer.
A car dealership will buy your trade at cost and then try to sell it for retail. You can sell your car at retail in a private transaction and almost always get more money than you would by trading it in to a dealer. However, trading your vehicle in makes everything easier for you. You don’t have to list your car, meet with buyers, field offers, and process paperwork. Many of our customers find the trade-in value worth the hassle saved, and because we offer top dollar for your trade, you likely will too.
Gap insurance doesn’t get enough attention, but it protects you against losing money if the unthinkable happens and your new car gets in an accident and is deemed a total loss. Your collision insurance covers the actual value of your vehicle. Most new vehicles experience significant depreciation immediately, making the actual value less than what you owe on your loan. This difference in value makes gap insurance a good investment. The same can, and often does, happen with used cars. Many dealerships require gap insurance and roll it into the loan to make it affordable.
What Do I Need to Buy a Used Car?
You don’t need much to buy a used vehicle. You’ll need some type of credit history along with proof of identity and usually some form of deposit, whether that comes in the form of cash or a trade-in. If you have a trade-in vehicle, you’ll need proof of ownership with the vehicle title. If you still owe money on your trade, you’ll need to contact your lender and get a payoff amount. Bring this paperwork into Sweeney Cars, and we can do the rest from there.
Whether you’ve done the math yet or not, Sweeney Cars can help get you into a new car today. Our finance department experts work tirelessly at finding the best deals for our customers, regardless of credit. We have many relationships with local lenders in Youngstown and national lenders that we leverage every day to get the best rates available. We invite you to get pre-approved online or visit us anytime to speak with a finance department specialist. Your dream car is closer than you think.