Rather than simply making one payment a month on your vehicle, you would take the total amount owed per month, cut it in half, and then pay that amount every two weeks. But with biweekly payments in place, you would be taking a slightly more aggressive approach to paying down your debt. You might make that payment on, say, the 15th every month and be done with it until the following month. Normally, when you finance a vehicle, you will be asked to make one payment every month in order to pay down the principal on your auto loan as well as the interest on it. We offer financing for all types of credit, and we are here to help you get into the car you need and get trade-in value on your current car.The concept behind biweekly car payments is actually pretty simple to understand. We have a large selection of quality vehicles to choose from at great prices.
If you are in the market for a great deal on a used car, truck, or SUV, come to Wii Auto Sales.
Your Next Vehicle Purchase at Wii Auto Sales You can make bi-weekly payments instead of monthly payments, or make additional principal-only payments on top of your regular monthly payment. Making extra payments on your auto loan can also help you pay off the loan sooner and save money on interest. Keep in mind that you will need to own your car outright or have equity in it to be able to refinance. You can also refinance your auto loan to get a lower interest rate, which will lower your monthly payment and the total interest you pay on the loan. Any trade-in value with your car purchase will also lower the amount of your loan, and therefore the interest you will pay. You can save money on car loans by making a larger down payment, which will reduce the amount of interest you will pay. By using an auto loan calculator, you can find out how much car you can afford and filter your search based on the total loan cost. Remember to include any additional fees, such as sales tax, in your calculation. Now that you know how auto loans are calculated, you can use an online auto loan calculator to estimate your monthly payment. If you got a cash rebate or multiple cash rebates, this will also lower your loan amount and monthly auto loan payments. Next, take the vehicle price and subtract any money you put down as a down payment. The total interest you will pay on the loan can be found by multiplying the vehicle price by the length of the loan in months, and then multiplying that number by the interest rate. If you do not know the interest rate, don’t worry! You can still estimate your monthly payment by using the average interest rate for used cars, which is currently between 4-8%, depending on if it’s a new car or used car and other factors like your financial situation (the main factor is your credit score and credit history). This will give you the amount of interest that will accrue on the loan. Auto Loan Basics: Calculate Your Own Auto Loan Paymentįirst, you take the vehicle price and multiply it by the interest rate. At six percent interest, over five years you’ll pay $1080 in interest for a total monthly payment of just under $400 ($390.80 to be exact). You’ll need to make a down payment of at least ten percent, which in this case is $2000.
#Biweekly car loan calc plus#
This number, plus the principal, is the monthly auto loan payment.įor example: You’re looking to buy a car for $20,000 with a five-year loan and you have a trade-in worth $2000. To calculate your monthly auto loan payment, you divide the total interest you will pay on the loan by the number of months in the loan term.
The amount of money you borrow is called the principal. Or, if you want to do the math yourself, here’s how: How Are Auto Loans Calculated?
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