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Auto Loan Qualifier

Last updated 25th Nov 2022

You can use this auto loan qualifier to figure out how much you can afford to pay for a new or used car. The calculator allows you to enter a desired monthly payment amount, and allowances for trade-ins or down payments. This information is then used to figure out the price you may be able to pay for a new car.

Calculator Definitions

The variables used in our online calculator are defined in detail below, including how to interpret the results.

Desired Monthly Payment ($ / Month)

This is the target monthly car payment you'd like to make on the loan. This calculator does not attempt to figure out if you qualify for this monthly car payment, only the price of a new car that you qualify for based on your monthly payment assumption.

Trade-In Allowance ($)

If you are trading in a car as part of the deal, then enter the trade-in allowance negotiated with the dealership. If you are not trading in a car, then just enter zero.

Down Payment ($)

If you are lowering the amount you're going to finance by providing a cash down payment, then enter that amount here.

Annual Interest Rate (%)

This is the annual interest rate on the auto loan. This is not the APR, which takes into account other costs associated with the loan.

Term of the Loan (Years)

The term of the loan is the number of years over which the loan will be paid. The most common car loan terms are 3, 4, and 5 years.

Sales Tax (%)

This is your state's sales tax rate, if any.

Car Loan Financing ($)

Based on your desired monthly payment, term of the car loan, and annual interest rate, this is the car loan you might expect to get from a lending institution.

Net Cash Up Front ($)

This is the net cash you are willing to pay upfront to buy this car based on trade-in allowances and your down payment.

Total of all Financing ($)

This is the total of all financing you are providing towards the car's purchase. This includes the possible amount financed plus the net cash up front.

State Sales Tax ($)

This is the sales tax due on the purchase of the new car. Sales tax is computed net of the trade-in allowance.

Possible Price of New Car ($)

This is the calculated possible price you can negotiate on a new or used car. This value considers your monthly payment, down payments, trade-in allowance, and state sales taxes (if any).

Auto Loan Qualifier

Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.

Moneyzine Editor

Moneyzine Editor