There are a few different things that can be referred to as a credit or payment calculator, and I’m talking about those that calculate your monthly payments when you’re purchasing a new vehicle. In this post, I’ll break down how credit calculators work, and how to get the best deal out there no matter what your credit score is.
Online credit calculators work best in an ideal world. They use a standardized set of guidelines to estimate monthly or bi-weekly payments based on the data that you provide to them. The thing that I always tell people to keep in mind is just that: it’s ideal. Calculators are a great tool to give you a rough idea of what you might be getting into for a specific car, but there are other important considerations.
While each calculator for each dealership and each vehicle will work slightly differently, they all take most of the same major items into consideration:
To keep it easy, calculators take the amount that you will owe towards the vehicle after a deposit/down payment, calculate the interest you will owe (interest can be calculated a few different ways, so we’ll leave that for the specifics), then breaks it down into payments based on your preferred repayment schedule. Your credit score isn’t considered in most online calculators, but it plays a big role in what your interest rate will be, and can also impact the length of loans available to you.
As with many things in life, credit and repayment often come with more than meets the eye. You don’t want to work with a finance representative that doesn’t have your best interests in mind. Otherwise, you may end up having someone run your credit (a hard credit check blemishes your credit) multiple times from multiple lenders just to see what rates are the best.
When you work with an experienced finance professional (such as myself), you can rest easy knowing that your credit won’t be pushed through again and again. From my many years of experience finding auto loans for people from all over Newfoundland, and my long-term relationships with our financial partners, I know which lenders to assess when submitting a credit application.
Our online car loan payment calculator is upfront and easy to use. Because we know how daunting the internet can be, we have included specific details in our calculator that explain how we calculate payments. We also have a clear and simple disclaimer explaining that our calculator is a tool to use for estimates and may be different from what your exact payments will be.
I'll always be sure to go through every step of the financing and payment process with you to ensure that you understand your terms.
The most important tip is to always remember that every situation is different! Always be sure that you’re working with vendors and numbers that you trust. If you’re looking for a great deal on a used car or truck, we can help. Still wondering about financing a vehicle? A full library of helpful posts can be found here, or you can contact me directly with questions!