Good information is the starting point for all good decisions. Get a sense of how much car you could afford, how much your vehicle payments could cost, and what kind of budget you should set for the car of your dreams using our convenient auto loan calculator.
Auto Loan Calculator
Understanding Auto Loans Definitions
Before you proceed with your next auto purchase, you should familiarize yourself with the following terms:
- Purchase Price: The purchase price of your vehicle includes the cost of the car, along with all associated tags, taxes, and titles.
- Down Payment: A down payment will secure your automobile purchase. Higher down payments often lead to better rates and fewer loan payments.
- Term Length: The amount of time you spend paying off a loan is known as term length. At Atlantic Financial FCU, this can range from 36 to 84 months.
- Annual Percentage Rate: The APR or annual percentage rate of your vehicle is the cost of borrowing money. This percentage includes all costs, like broker fees, closing costs, and title fees.
- Interest Rate: This rate refers to the price of borrowing money for your vehicle. It does not take into account any additional costs.
How To Stay In Your Auto Budget
Making a car budget is one thing, but sticking to it is quite another. It can be difficult to know just how much you could or should budget on your next vehicle. Consider the important tips below:
- Monthly Income: Determine how much you could comfortably spend on an auto loan per month. Most lenders suggest no more than 10% of your gross income should be put towards a vehicle.
- Current Debt: Take an objective approach to your current debts. How have you budgeted for these? Could you budget for an auto loan in the same way?
- Automatic Payments: If you set up auto bill pay from your checking account, would you be comfortable? If not, you have likely set your budget too high.
- Low APR Rate: Choose an auto loan with the lowest APR rate possible. Atlantic Financial FCU provides competitive and low-cost interest rates that outperform commercial banks.