Cars.com Auto Loan Calculator
The Cars.com Auto Loan Calculator helps potential car buyers calculate the monthly payment for their auto loan based on the vehicle price, down payment, trade-in value, interest rate, loan term, and other key factors. It also allows users to factor in sales tax, title fees, and the amount owed on a trade-in, offering a detailed breakdown of the total loan cost.
In this guide, we will walk through how to use the Cars.com Auto Loan Calculator and explain what each result means for your car financing.
How to Use the Cars.com Auto Loan Calculator
The Cars.com Auto Loan Calculator allows you to input key details of your car purchase, providing you with an accurate monthly payment and other important figures. Here’s how to use it:
Step 1: Enter the Vehicle Price
Start by entering the vehicle price, which is the cost of the car you're looking to buy.
Step 2: Input the Down Payment
Next, input your down payment. This is the amount you’re paying upfront. A higher down payment reduces the amount you need to finance.
Step 3: Enter the Trade-In Value and Amount Owed
If you're trading in your current vehicle, input the trade-in value and the amount owed on trade-in. The net trade-in value will be calculated as the difference between the two.
Step 4: Input the Interest Rate (APR)
Enter the interest rate (Annual Percentage Rate or APR) offered by your lender. This rate determines how much interest you will pay over the life of the loan.
Step 5: Select Your Loan Term
Choose your loan term from the available options (24, 36, 48, 60, 72, or 84 months). The longer the loan term, the lower your monthly payments, but you’ll pay more interest in the long run.
Step 6: Enter the Sales Tax
Input the sales tax percentage for your state or region. This is usually calculated as a percentage of the vehicle price.
Step 7: Include Title, Registration, and Fees
Lastly, input any title, registration, and fees you need to pay for the car purchase.
Step 8: Click "Calculate"
Once you’ve entered all the required details, click the "Calculate" button to see your loan details.
What Does the Cars.com Auto Loan Calculator Show?
Once you click "Calculate", the tool will display several important figures, helping you understand your loan’s breakdown:
1. Monthly Payment
This is the amount you will pay every month for the duration of the loan. It’s calculated based on the loan amount, interest rate, and loan term.
2. Loan Amount
This is the total amount you are borrowing, after accounting for your down payment and trade-in value.
3. Sales Tax Amount
This is the sales tax you will pay based on the vehicle price and the sales tax percentage you entered.
4. Total Interest Paid
The total amount of interest you will pay over the life of the loan. The longer the loan term or higher the interest rate, the higher the total interest.
5. Total Loan Cost
This is the total amount you will pay over the life of the loan, including the principal amount and the total interest.
6. Total Out-of-Pocket
This includes your down payment, trade-in (net trade-in value), and the total cost of the loan, giving you the total out-of-pocket cost for the car.
7. Net Trade-In
This is the net value of your trade-in vehicle, which is calculated by subtracting the amount owed on your trade-in from its trade-in value.
Example Calculation
Let’s look at an example:
- Vehicle Price: $30,000
- Down Payment: $3,000
- Trade-In Value: $10,000
- Amount Owed on Trade-In: $5,000
- Interest Rate (APR): 5%
- Loan Term: 60 months (5 years)
- Sales Tax: 7%
- Title & Fees: $500
After entering these values into the calculator, you would see:
- Monthly Payment: $468.75
- Loan Amount: $25,500
- Sales Tax Amount: $2,100
- Total Interest Paid: $3,125
- Total Loan Cost: $28,625
- Total Out-of-Pocket: $31,625
- Net Trade-In: $5,000
Benefits of Using the Cars.com Auto Loan Calculator
- Accurate Monthly Payment: Helps you determine a precise monthly payment based on your specific loan details, making it easier to plan your budget.
- Better Financial Planning: By including sales tax, title fees, and trade-in values, you can get a complete picture of the total cost of the car.
- Understand the Full Loan Cost: The tool shows you the total interest paid over the life of the loan, which helps you make informed decisions about loan terms and interest rates.
- Easy Comparison: You can use this calculator to compare how different down payments, loan terms, and interest rates affect your loan payments and overall cost.
- Trade-In Value: It accounts for the net value of your trade-in, helping you understand how it will reduce the total amount financed.
Frequently Asked Questions (FAQs)
- How is the monthly payment calculated?
The monthly payment is calculated using the loan amount, interest rate, and loan term, based on standard loan amortization formulas. - What if I don’t have a trade-in?
If you don’t have a trade-in, simply enter 0 for the trade-in value and owed amount. The calculator will adjust accordingly. - Can I adjust the loan term?
Yes, you can select a loan term from 24 to 84 months, and the calculator will adjust your monthly payment based on the term you choose. - How does sales tax affect my loan?
The sales tax is added to the vehicle price, increasing the total amount you’ll need to finance. - What if I don’t have a down payment?
If you don't have a down payment, simply enter 0. The calculator will then base your loan amount on the vehicle price and trade-in value. - What’s the best loan term?
The best loan term depends on your budget. A shorter term means higher monthly payments but lower total interest. A longer term lowers your monthly payment but increases the total interest paid over time. - Can I use this for refinancing?
This tool is designed for new car purchases, but you can use it to estimate payments for a new loan if you’re refinancing a vehicle. - What happens if I pay extra toward my loan?
Paying extra toward your loan principal will reduce the loan balance faster and can lower the total interest paid over the life of the loan.
Conclusion
The Cars.com Auto Loan Calculator is an excellent tool for car buyers who want to understand how their financing options will affect their monthly payments and the total cost of the loan. Whether you’re looking to purchase a new or used car, this calculator provides the necessary tools to plan your loan effectively. Use it to make informed decisions and ensure that your car purchase fits comfortably within your budget.