If you’re struggling with credit issues and need a vehicle, a solid budget can make good footing for the climb. Don’t let making a budget overwhelm you, there are online tools and calculators available that can help with nearly every number you’ll need.

What to Consider

In order to begin planning, you need to know what goes in to the cost of a new vehicle. Some payments you’ll need to consider include a down payment, the monthly payment amount, and car insurance. Online auto loan calculators are a terrific resource for anyone who's trying to weigh their car buying options. It’s important to know what you can afford – especially if your credit is in poor health – so you can choose the right financing. This'll help you take advantage of the credit building opportunity a car loan offers you.

Take Advantage Of Online Tools

couple budgeting on computerA down payment calculator is an essential tool if you’re planning to save for your purchase. There are many benefits to making a down payment on a vehicle, and a down payment calculator can help you see them. They’re designed to show you what a loan will look like based on how much you put down. To use this tool, enter the purchase price of the vehicle, the loan term, the interest rate, and the sales tax rate. Entering various down payment amounts will show you how it can help you save money in the long run.

Though the amount will vary by dealer, someone needing subprime financing will typically need a down payment between $500 and $1,000 or 10 percent of the vehicle's selling price, whichever is less.

A monthly payment calculator is a simple tool that can help you decide on a loan term. You can adjust the length of a loan with this tool to see how it will impact your budget after putting in your basic purchase information.

Car loan approval calculators allow you to play with your numbers to see different situations. Here, you put in your desired monthly payment, credit type, loan term, sales tax and any down payment you plan on using. The outcome will show you different payment amounts and terms depending on the information you use.

This is a great tool for seeing the overall effects of a loan. For example, entering a larger down payment will result in smaller monthly payments and a lower overall cost. Keep in mind the big picture when you’re preparing your budget, however. A smaller monthly payment may look like a good option, but a longer term will leave you paying more in interest over time.

The Bottom Line

Using the right tools is a good starting point in knowing what to expect for your budget in the car buying process. Remember, these are designed as guidelines. Actual interest rates and loan terms will vary and are always determined by the lender.

If you’re ready to find a dealer to help you, Auto Credit Express is one of the best tools available. We can guide you toward a local special finance dealer with the lenders you need. They can help people in many types of challenging credit situations. What are you waiting for? Simply fill out our free, no-obligation auto loan request form to get started today!