• How to Use a Car Loan Refinance Calculator

    The advantage of using a car loan refinance calculator is that you will have a realistic idea of how the loan will work, and the interest you are likely to pay. A calculator is an online data form which allows you to input the amount you wish to borrow to finance your car. You can then choose the length of payment terms depending on the specific website or form you are using.

    Step 1 – Input

    When using an online car refinance calculator you will probably be asked for the amount you wish to borrow. Input the figure in full US dollars, such as $9,000. You will then be asked to input the length of the loan. Choices vary from company to company, and you may have a few to decide between, such as 12 months, 24 months, 36 months or more. Choose your required term and input it. If you are refinancing, it may also ask for your current principal balance, which you must also input. You may also be asked for your credit rating, but this is not always the case.

    Step 2 – Calculations

    Your personal calculation will be based specifically on your input of data and once you have completed those steps, the calculator will assess the information. You may need to wait a few seconds for the calculator to adjust the costs for your own needs. It will also reveal the car loan interest rate applicable to you according to your credit rating. Again, this will vary between online companies.

    Step 3 – Decision

    You can make your decision as to whether you proceed, based on the calculation results. If you like the price and the terms, then you can choose to proceed. If not, just close the window and start over elsewhere.