The following is an 84 month auto loan calculator. It computes your monthly payment and can be adjusted to match your applicable downpayment and car value. You can also change the loan term from 84 months if you wish.
Getting a Car Loan
Many lenders can give you loans in the United States. It depends on the lender near you and the interest rates you are comfortable with. Finding a lender can be challenging as you juggle the process of finding who will accept to finance your car acquisition at your current credit score, among other considerations.
Getting a ready lender to finance your car acquisition shouldn’t be as hard as it was traditionally. Today, you can easily connect with lenders willing to finance your car acquisition through PersonalLoans.com, BadCreditLoans, or CashAdvance.
Fortunately, you can also get a car refinancing loan with these platforms. This helps you replace a current car loan with a new one with better payment terms.
PersonalLoans.com
From $1,000 to $35,000
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CashAdvance.com
Up to $10,000
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Up to $10,000
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Determinants of Monthly Payment
There are many factors that would affect the monthly payment you are committed to for your 84-month auto loan. The three major factors are the down payment, loan term, and interest rate.
Effects of the down payment
The higher your down payment, the lower the monthly payment you are committed to. A down payment lowers the loan amount that your lender gives you.
Lets consider you want to buy a car worth $20,000. You make a downpayment of $3,000. The loan amount you need to acquire this car is $17,000.
Now assume your down payment is slightly higher, say $7,000. The loan amount you need to acquire this car is $13,000.
In the above example, a $17,000 loan would demand a higher monthly payment than a loan of $13,000.
Effects of the loan term
If you want to finish paying off your loan within the shortest time possible, you must pay a higher monthly payment, right? However, your cash flow might not allow you to pay a car loan immediately. By the following logic, you could take a car loan because you don’t have this cash.
So, if you want to pay a lower monthly payment, you would negotiate for a car loan with a longer repayment period.
To put this into context, a car loan with just 42 months will demand a higher monthly payment than the same loan, whose term is 84 months.
Effects of interest rates
The interest rate is the cost of your car loan. Thus, the higher the interest rate, the higher the costs you incur to get such a loan. Conversely, the lower your car loan interest rate is, the lower your costs for such car financing. This explains why interest rates should be among the scorecard of competing lenders.
