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Should I refinance my auto loan at a lower rate?

Without increasing the term remaining on your existing loan, you will be able to save interest with a new loan at a lower rate. Use this auto refinance calculator to determine the monthly savings that could be realized by refinancing your auto loan at a lower rate yet keep the same remaining term.

Auto loan payoff calculator

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.

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Auto Loan Calculator

Auto loan payoff calculator

$372.86 / Month

The Auto Loan Calculator considers the most vital factors in order to calculate auto loan information. It assumes that the full purchase price is accounted for whether as down payment or part of the loan, along with any fees involved. If only the monthly payment for any auto loan is given, use the Monthly Payments tab (reverse auto loan) to calculate the actual vehicle purchase price and other auto loan information.

Important: Tax and fee procedures apply to car purchases within the US only. Foreigners may still use the calculator, but please adjust accordingly.

There are different definitions for different prices when it comes to car buying such as MSRP (manufacturer’s suggested retail price), selling price, blue book price, and dealer price. For any recently purchased or sold car, input the final selling price as the “Auto Price” figure. For hypothetical loans involving cars not being bought or sold, use blue book prices to arrive at close estimates for the values of the cars.

Purchases of cars usually come with costs other than the purchase price. Car buyers with low credit scores might be forced to pay the hefty fees upfront. The following is a list of common fees associated with car purchases in the US.

  • Sales Tax Most states in the US collect sales tax for auto purchases.
  • Document Fees This is a fee collected by the dealer for processing documents like title and registration. Typically, they run between $150 and $300.
  • Title and Registration Fees This is the fee collected by states for vehicle title and registration. Most states charge less than $300 for title and registration.
  • Advertising Fees This is a fee that the regional dealer pays for promoting the manufacturer’s automobile in the dealer’s area. If not charged separately, advertising fees are included in the auto price. A typical price tag for this fee is a few hundred dollars.
  • Destination Fee This is a fee that covers the shipment of the vehicle from the plant to the dealer’s office. This fee is usually between $600 and $1,000.
  • Insurance In the US, auto insurance is strictly mandatory to be regarded as a legal driver on public roads and is usually required before dealers can process paperwork. When a car is purchased via loan and not cash, full coverage insurance is mandatory. Auto insurance can possibly run more than $1,000 a year for full coverage. Most auto dealers can provide short-term (1 or 2 months) insurance for paper work processing so new car owners can deal with proper insurance later.

Important: If the fees are bundled into the auto loan, remember to check the box ‘Include All Fees in Loan’. If they are paid upfront instead, leave it unchecked.

Quick Tip 1: Should an auto dealer package any mysterious special charges into a car purchase, please demand justification and thorough explanations for their inclusion. This is not to say that well-intentioned car salesmen don’t exist, but there is a reason why this particular group of people get a bad rap as some of the most untrustworthy and scheming around. After all, their mission is to squeeze as much profit out of a potential car selling scenario as possible.

Auto Loans

Many people cannot afford to purchase cars with straight cash, so they turn to auto loans instead. They work as any generic, secured loan from a financial institution does with a typical term of 36 or 60 months. Each month, repayment of principal and interest must be paid to auto loan lenders from borrowers, excluding other mandatory fees and taxes (unless they have been intentionally included into the loan). Money borrowed from a lender that isn’t paid back can legally entitle a car to being repossessed.

Direct Lending vs. Dealership Financing

There are two financing options available: direct lending or dealership financing. With the former, it comes in the form of a typical loan originating from a bank, credit union, or financial institution. Getting pre-approved through a credit union is usually the best option and offers the lowest rates, especially for lifelong, good standing members.

Quick Tip 2: To aid ability to negotiate the best deals, take steps towards achieving healthier credit scores before taking out large loans for car purchases. Free annual credit reports can be requested from one of the three credit agencies: Equifax, Experian, and TransUnion.

Once a contract has been entered with a car dealer to buy a vehicle, the loan is used from the direct lender to pay for it. Dealership financing is somewhat similar except that the paperwork is done through them instead. The contract is retained by the dealer, but is sold to a bank or other financial institution called an assignee that ultimately services the loan.

Quick Tip 3: Direct lending usually offers more flexibility because there is competition between involved lenders to offer the best interest rates to the borrower, and rates tend to be better. It also provides more leverage for someone to walk into a car dealer with most of the financing done on their terms, as it places further stress on the car dealer to compete with a better rate. Getting pre-approved doesn’t tie car buyers down to any one dealership, and their propensity to simply walk away is much higher. With dealer financing, the potential car buyer has fewer choices, though it’s there for convenience for anyone who doesn’t want to waste time shopping around.

Quick Tip 4: It can be helpful for prospective car buyers to determine how much they can afford to spend on a car and what types of cars are within their budget before actually heading to a dealership. Knowing what kind of vehicle is desired will make it easier to research and find the best deals that suits a buyer’s needs. Once a particular make and model is chosen, it can be important to have some typical going rates in mind to enable effective negotiations with a car dealer. Car dealers, like many businesses, want to make as much money as possible from a sale, but often, given enough negotiation, are willing to sell a car for significantly less than the price they initially offer. Depending on whether a buyer chooses to pay for the vehicle with monthly payments, the “Monthly Payment” tab of our Auto Loan Calculator can be used to calculate the “true” cost of the car. A monthly payment option often ends up being more expensive than buying the car outright. However, if buying the car outright is not an option, it is up to the buyer’s discretion to determine whether the need for a car sooner justifies the additional cost of making monthly payments rather than saving until a later date to avoid said monthly payments. Furthermore, although the allure of a new car is understandable, buying a pre-owned car even if only a few years removed from new can usually result in significant savings, and is an option that prospective car buyers can consider.

Trade-in Value

Don’t expect too much value when trading in old cars to dealerships as credit towards newer car purchases; exchange rates tend to float somewhere akin to auction house levels, way below blue book values. Selling old cars privately beforehand and using the funds for future car purchases tends to result in a more financially-desirable outcome. However, convenience is important for many people and they choose to simply trade them in to dealerships during new car purchases.

Within the states that collect sales tax on auto purchases, most of them collect based on the difference between the new car and trade-in price. For a $25,000 new car purchase with a $10,000 valued trade-in, the tax paid on the new purchase with an 8% tax rate is:

$25,000 – $10,000 = $15,000 8% = $1,200

This is the default method by which the Auto Loan Calculator will calculate sales tax in accordance with Trade-in Value. However, some states do not offer any sales tax reduction with trade-ins, and they are:

Using the same example above, whereas if the new car was purchased in one of the places above without a sales tax reduction for trade-ins, the sales tax would be:

This comes out to be an $800 difference, enticing more people in these places to sell cars to private parties instead.

Vehicle Rebates

Dealers may offer vehicle rebates to further incentivize buyers. When car manufacturers are pressured into getting rid of cars at lower profit margins, it can be inferred that they probably use rebates as a means of doing so.

Depending on the state, they may or may not be taxed accordingly. For example, purchasing a vehicle at $30,000 with a cash rebate of $2,000 will have sales tax calculated based on the original price of $30,000, not $28,000. Luckily, a good portion of states do not do this and don’t tax cash rebates. They are Alaska, Arizona, Delaware, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Utah, Vermont, and Wyoming.

Generally, only purchases of new cars are offered rebates because of how uniform and consistent each new car is. Dealers know exactly to the cent where the breakeven point is and if they are still a wide margin over, they can incentivize a potential car buyer by offering a rebate. While some used car dealers do offer cash rebates, they are a rarity due to the difficulty of arriving at true value.

Quick Tip 5: New cars depreciate as soon as they are driven off the lot, sometimes by more than 10% of their values; this is called off-the-lot depreciation.

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Whilst every effort has been made in building the car loan calculator tool, we are not to be held liable for any special, incidental, indirect or consequential damages or monetary losses of any kind arising out of or in connection with the use of the calculator tools and information derived from the web site. This tool is here purely as a service to you, please use it at your own risk.

The calculations given by the car loan calculator tool are only a guide. Please speak to an independent financial advisor for professional guidance. Read the full disclaimer.

Why take out a car loan?

When it comes to financing a new car, there are a number of options available to you – outright purchase, personal loan, leasing, hire purchase or dealer financing. It’s advisable to read up on the pros and cons of each of these before deciding upon the best one for you. Articles such as this one on What Car’s website may help you make the decision. Should you be considering taking out a different type of loan, give our standard loan calculator a try.

What is the car loan calculator?

Auto loan calc

This calculator helps you fully work out the costs associated with purchasing a car/auto on credit. Once you have entered the amount, the interest rate and the period of the loan, the calculator will produce some important figures, allowing you to assess the loan.

The first key figure given to you will be the total cost for the car loan, including all of the interest. You will then be presented with the regular payments and the total interest that you stand to pay.

As an additional feature, the car loan calculator breaks down the monthly payments, showing you how much of the monthly payment is for the capital and how much is interest, together with the balance remaining at that point in time.

From all of this information you should be able to gauge whether you think it is worthwhile going ahead with the car loan or not.

What is a balloon payment?

A balloon payment is a large, lump-sum payment made at the end of a long-term loan. It is commonly used in car finance loans as a way of reducing monthly repayment figures. Be aware that once you reach the end of your loan period, that balloon amount becomes payable. You can learn more about balloon payments in our article, What is a balloon payment?.

What is the formula for this calculator?

This calculator uses the following formula:

Monthly payment = [rate + rate / ( (1+rate) ^ months -1) ] x principal car loan amount

If you have any problems using this car finance calculation tool then please contact me.

Current Loan Rates, Fidelity Savings and Loan, current auto loan rates.#Current #auto #loan #rates

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Before you judge loan rates, Fidelity Savings would suggest that you consider the following question:

Is comparing APRs the best way to decide which lender has the lowest rates and fees?

The Federal Truth-in-Lending Act requires that all financial institutions disclose the Annual Percentage Rate (APR) when they advertise a rate. The APR is designed to present the actual cost of obtaining financing, by requiring that some of the closing fees charged at the loan settlement and closing be included, in addition to the interest rate, to determine the cost of financing over the full term of the loan.

For Adjustable Rate Mortgages (ARMS), the APR can be complex. Since no one knows exactly what market conditions will be in the future, assumptions must be made regarding future rate adjustments

You can use the APR as a guideline to shop for loans but you should not depend solely on the APR in choosing the loan program that is best for you. Also, the APR does not include all the closing costs. Look at total fees, possible rate adjustments in the future if you are comparing ARMS, and consider the length of time that you plan on having the mortgage financing for your home, etc.

Don t forget that the APR is an effective interest rate not the actual interest rate. Your monthly payments will be based on the actual interest rate, the amount you borrow, and the term of your loan.

Fidelity Savings accessible and experienced loan officers are glad to meet with you, without obligation, to help you evaluate alternative loan products and the financial impact on your monthly income. Fidelity Savings is recognized for its continued customer service both during and after the loan is granted. Fidelity Savings success in its community is seen through helping those with borrowing and deposit needs from today s generation, their parents and their grand-parents before them. Fidelity Savings is recognized for being a banking tradition since 1885. We can make a difference, Let us show you how!

Rates are accurate as of 11/13/2017. All rates are subject to change and are stated as of the date listed above. If you would like current rate information after the rate effective date, please call Fidelity Savings’ experienced Loan Officers at 215-788-0448 for more information on Loan Products, or Contact Us to send your communication to us.

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BarNone was founded in 1995 for the purpose of helping the millions of working people who, because of credit discrepancies, are not able to obtain auto loans to purchase a quality vehicle in a “conventional” manner. BarNone has offices in Michigan and California and maintains a 24-hour call center.

When you’re looking for an auto loan, it pays to shop around. BarNone helps you compare auto loan rates and loan terms from multiple lenders. Compare different types of automobile loans, including new car loans, used car loans, and refinancing options, whether you’re buying from a dealer, or a private seller.

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At Bad Credit Loan Center ™ we believe in second chances. We know that good people do fall on hard times and in this economy it s not easy to find help.

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It takes less than 3 minutes to complete an application and usually with in a couple hours a lender will contact you if you re approved. It doesn t matter if you re looking for bad credit loans or good credit loans we can help you find a lender. Bad Credit Loan Center ™ provides a payday loan matching service only and is not a lender.

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If you re looking for an auto loan, debt consolidation, bad credit personal loans or credit cards please use the navigation bar at the top of this page. For more information about us or loans for bad credit please visit the about link in the footer of this page.

Bad credit loans should be used responsibly. You will be required to repay your loan on time to avoid extra interest or fees. Personal loans for people with bad credit that offer monthly payments may be available please consult your lender.

Loans are not available in all states even if you apply on the internet. All short term lenders have the right to run your credit if they deem it necessary.

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For over 20 years we’ve been telling everyone, auto loans are all we do. Our mission is simple; make it as easy as possible to get a car loan online while being a national leader in online vehicle financing. Since we first went online in 1999, we’ve been Driving Approval across the country with more than 5 million auto loan applications processed. We have a national auto loan network which allows us to get you the best interest rate your credit score will allow. Our no obligation auto loan application is simple, fast, and secure – so there’s never been a better time to get an auto loan and buy a car than today.

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The service we provide at is second to none! We know each customer is unique and has their own hurdles to overcome, but that’s why we’re here. We have been providing our service for so long, each of our vehicle financing experts feels like they’ve seen it all. We know they haven’t seen every situation, but we’re so confident that we can help you overcome those obstacles and get a car loan, we’re willing to stake our reputation on it every single day.

We take care of all the leg work and you get the best possible vehicle financing. Our application is so easy that it takes only minutes to complete. The basic requirements are minimal, there’s no obligation and best of all, it’s a free pre approval. Whether you need a 48, 60 or 72 month auto loan, let us do what we do best – get you an auto loan!

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Everyone like to do as much research as possible before they make any type of large purchase. We understand that at We want to make our years of knowledge avaiable to anyone that likes to do as much research as we do.

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Whatever type of vehicle you need, RBFCU has the right financing options for you. We offer loans on several vehicles including motorcycles, boats (excluding yachts), RVs, ATVs and personal watercrafts. We also offer loans for specialized collateral, like farm equipment, tractors, trailers and more. And, if you want to refinance from another institution, you can take advantage of our low rates.

Just complete the online application in a few simple steps.

Ready to apply for a loan? Here s what you ll need to complete the application:

  • The amount you would like to borrow
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Loans are subject to credit approval. Your specific rate and term will be dependent upon your credit rating and other factors. Rates and terms subject to change without notice. Some restrictions may apply. Contact our Consumer Lender Center for more details.

With high-value products and services, Randolph-Brooks Federal Credit Union (RBFCU) is a trusted financial partner for thousands of members in Texas, as well as around the world. RBFCU offers all the banking services you would expect from a leading credit union, and we’ve also made it our mission to help improve our members’ economic well-being and quality of life. Our commitment to personalized service makes RBFCU membership the smarter banking choice.

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How Refinancing Works: Pros and Cons of New Loans, refinancing auto loan.#Refinancing #auto #loan

Learn About Refinancing: Pros and Cons of Replacing a Loan

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If you have a loan that’s too expensive or too risky to live with, you can often refinance into a better loan. Things may have changed since you borrowed money, and there may be several ways to improve the terms of your loan. Whether you’ve got a home loan, auto loans, or other debt, refinancing allows you to shift the debt to a better place.

What is Refinancing?

Refinancing is the process of replacing an existing loan with a new loan.

The new loan pays off the current debt, so that debt is not eliminated when you refinance. However, the new loan should have better terms or features that improve your finances. The details depend on the type of loan and your lender, but the process typically looks like this:

  1. You have an existing loan that you would like to improve in some way.
  2. You find a lender with better loan terms, and you apply for the new loan.
  3. The new loan pays off the existing debt completely.
  4. You make payments on the new loan until you pay it off or refinance.

Why People and Businesses Refinance

Refinancing is time-consuming, it can be expensive, and a new loan might be missing attractive features that an existing loan offers. So why go through the process? There are several potential benefits to refinancing.

Save money: A common reason for refinancing is to save money on interest costs. To do so, you typically need to refinance into a loan with an interest rate that is lower than your existing interest rate.

Especially with long-term loans and large dollar amounts, lowering the interest rate can result in significant lifetime interest savings.

Lower payments: Refinancing can lead to lower required monthly payments. The result is easier cash flow management and more money available in the budget for other monthly expenses.

When you refinance, you often restart the clock and extend the amount of time you’ll take repay a loan. Since your balance is most likely smaller than your original loan balance and you have more time to repay, the new monthly payment should decrease.

A lower interest rate (with all other things staying the same) can also lead to lower monthly payments. However, simply extending the life of a loan can actually mean you’ll pay more for the loan over the long term. To see how interest rates and your loan term affect cash monthly flow, see how to calculate loan payments.

Shorten the loan term: Instead of extending repayment, you can also refinance into a shorter term loan. For example, you might have a 30-year home loan, and that loan can be refinanced into a 15-year home loan. That move might make sense if you want to make larger payments to get rid of the debt more quickly. Of course, you can also just make extra payments without refinancing. Making larger payments without refinancing would help you avoid paying closing costs and keep some flexibility (you can pay more than the minimum, but you don’t have to if something comes up).

Consolidate debts: If you have multiple loans, it might make sense to consolidate those loans into one single loan—especially if you can get a lower interest rate.

It’ll be easier to keep track of payments and loans, but consolidating can cause problems (see below).

Change your loan type: Even if you don’t lower your interest rate or monthly payment, it can make sense to refinance for other reasons. For example, if you have a variable-rate loan, you might prefer to switch to a loan with a fixed rate. A fixed interest rate could offer protection if rates are currently low, but expected to rise.

Pay off a loan that’s due: Some loans, particularly balloon loans, have to be repaid on a specific date. But you might not have the funds available a large lump-sum payment. In those cases, it might make sense to refinance the loan—using a new loan to fund the balloon payment—and take more time to pay off the debt.

For example, some business loans are due after just a few years, but they can be refinanced into longer-term debt after the business has established itself and shown a history of making on-time payments.

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Disadvantages of Refinancing a Loan

Refinancing is not always a wise move. Even if you secure a lower interest rate or lower monthly payment, it could be a mistake to get rid of existing loans. Evaluate the pros and cons carefully before you move forward.

Transaction costs: Refinancing can be expensive. Especially with loans like home loans, you’ll pay closing costs which can add up to thousands of dollars. You want to make sure you’ll more than break even before you pay those costs. Other types of loans, including loans from online lenders, can include processing and origination fees.

Higher interest costs: Refinancing can backfire. When you stretch out loan payments over an extended period, you pay more interest on your debt. You might enjoy lower monthly payments, but that benefit can be offset by the higher lifetime cost of borrowing. Run some numbers to see how much it really costs you to refinance. Do a quick loan amortization to see how your interest costs change with different loans.

Lost benefits: Some loans have useful features that will be eliminated if you refinance. For example, federal student loans are more flexible than private student loans if you fall on hard times. Plus, federal loans might be forgiven if your career involves public service. Likewise, keeping a fixed-rate loan might be ideal if interest rates skyrocket—even though you’d temporarily get a lower rate with a variable rate loan.

What Doesn’t Change

When you refinance, some things change, and some things don’t.

Debt: Your loan balance will not change. You’ll still have the same amount—unless you take on more debt while refinancing. It’s possible to do cash-out refinancing or roll your closing costs into your loan, but that just increases your debt burden.

Collateral: If you used collateral for the loan, that collateral will probably still be at stake (and required) for the new loan. For example, refinancing your home loan means you could still lose the home in foreclosure if you don’t make payments. Likewise, your car can be repossessed with most auto loans. Unless you refinance into a personal unsecured loan, the collateral is at risk. In some cases, you can actually increase the risk to your collateral when you refinance. Some states allow non-recourse home loans to become recourse loans after refinancing.

Payments: You still have to make payments, but in most cases, your monthly payment will change when you refinance. You’ve got a brand new loan, and the payments are calculated with that loan balance, term, and interest rate. To avoid getting caught by surprise, learn how to model a loan yourself (it’s easy with free online spreadsheets).