The Rules
Buying a vehicle is one of the largest purchases for people, and understanding the financial side of that purchase is very important. Buyers choose to finance their vehicle through a bank, credit union, or dealership instead of paying the full price upfront. Financing allows drivers to spread the cost of the vehicle over time through monthly payments, making it easier to afford.
Interest rates have a major role in the total cost of a vehicle loan. When a lender provides financing, they charge interest as the cost of lending money. Even a small interest rate can increase the overall amount paid for a car over time. Because of this, it is important for buyers to understand how interest rates affect the price.
The finance calculator below allows you to estimate the total cost of a vehicle with interest. By entering the price of the car and the interest rate offered by a lender, you can see how much the total is. This will help you know if the vehicle’s price is in your budget after interest.
Interest Calculator
Car Price:Interest Rate (%):