Check out the auto loan calculator? The car loan calculator is a quick and easy tool to estimate your Canadian auto loan payments. Enter the vehicle price, down payment, interest rate and trade in below. The car financing calculator will tell you your estimated payment in Canadian dollars.
Use the sliders or input your own values for estimates.
Price of your new vehicle
Value of your trade-in vehicle
Your existing vehicle loan balance
Your down payment
Duration of your loan
Provincial sales tax
Expected interest rate
Your total amount to be financed will be
|Payment Frequency||Payment Amount||Total Interest to be Paid over the Duration of the Loan|
This estimate is an approximation and is not guaranteed. Actual payments may change from the amount provided above.
Because of the high purchase price of today’s vehicles, most people choose to finance their new or used car in Edmonton and across Canada. Trying to calculate car loans can be tricky if you have no experience calculating auto loans. There are several values that need to be taken into consideration such as vehicle cost, financing term, trade-in value, cash down payment, and interest rate. If the car is below a certain value such as $7500, many lenders and banks will not offer financing at all, so calculating your car loan is usually on amounts that are a bit higher. Our car loan calculator is designed to calculate monthly and bi-weekly car payments. These calculations are car loan payment estimations and may not reflect exact car loan payment amounts. Some lenders and banks will even offer semi monthly payments or even weekly payments. The car loan calculator below will give you very good estimates on the most common options chosen by people in Edmonton and across Canada.
If you’re planning on financing a new or used vehicle, a monthly or bi-weekly budget is most likely the information you are considering most important to you. Using the auto loan calculator can help you to determine the what price of a vehicle is in the budget, how much of your own cash you would like to put as a down payment, whether to trade in your vehicle or sell it privately, and how long you might want to finance a vehicle for. Calculating car loan terms usually depends on the year of the vehicle being financed. For example while a brand new vehicle qualifies for up to 96 months, but car loan calculations for used vehicles are less, and as the vehicles age increases the term of loan will typically decrease. Calculating a car loan is not always an exact science either, because different lenders may offer slightly different terms based on year, and kilometers of the vehicle. For example a 1or 2 year old vehicle typically qualifies for up to 84 month terms. 3 to 5 years old up to 72 months. 4 and 5 years up to 60 months, 7 and 8 years up to 48 months, 9 to 11 years 24 and 12 months. Kilometers may also play a role in calculating or estimating the vehicle payments. Typically 20,000 kms per year is about average. The more kilometers on the vehicle the shorter the term is offered. Some lenders will not offer financing on vehicles with more than 180,000 kms.
The auto loan calculator will show the overall price including financing fees and taxes. The longer you choose to finance the vehicle the lower. Although a longer term might reflect a lower payment, you will most likely pay more interest over the course of the loan.
Interest rates are calculated on an annual basis and added to the cost of the vehicle every year. Typically the longer the term and the higher the interest rate, the more you will spend on the cost of borrowing. Interest rates usually vary between 0% and 29.9% depending on how good the credit is. If you are rebuilding your credit or have a slightly higher interest rate, purchasing a lower cost vehicle might make more sense for the short term.
Consider how much your vehicle is worth if you’re trading it in. If you’re trading in a vehicle that’s worth $10000 and you’re buying a vehicle that’s worth $25,000, then you will only have to take an auto loan out for at least $15,000 providing you do not owe money on it still. If you still owe money, you still can trade the vehicle in as long as you do not owe a lot more money than the vehicle is worth. Calculating a car loan with when there is money owing on it still can be tricky, but our auto loan calculator does it all for you. For example, if your vehicle is worth $5000, but you still owe $10,000 then an additional $5,000 needs to be added onto your new loan. So if you are buying a vehicle for $25,000, then the new price becomes $30,000. As you can see, there are a number of calculations and factors that determine what your final payment will be. Here is a breakdown of all the components the auto loan calculator uses. Would you like to get some real number? Get prequalified here and find out now. Yes all trade ins are accepted regardless of amount owing.
What are the components or parts that make up an auto loan, and used in our auto loan calculator? Check out the car loan categories below for explanations of how these can affect the car loan calculations in Edmonton Alberta and Canada wide
This is the agreed purchase price of the vehicle after any discounts, taxes, rebates, administration, or bank fees. The purchase price may be the one advertised online or one that has been reduced. The additional amount added on is calculated into your final payment and is usually quoted with everything included.
The down payment is usually money that comes out of pocket, or equity that comes from your trade in vehicle. Down payment will reduce the overall amount to finance. Check out the auto calculator with different amounts of cash down payment to see how your payment reflects this. You can also check out the calculator with or without your trade-in vehicle to see the difference between trading in, and choosing to sell it privately. There would need to be equity in the trade in vehicle for it to count as down payment. Equity is when the value of the vehicle is more than the trade in allowance given by the dealer.
The trade in value is the amount of money the dealership will pay or allows for the trade in. The trade in value is usually based on fair market value using tools such as Canadian Black Book, Auto Trader, Kijiji, Facebook Market Place, ADESA Auctions, and other places vehicles are sold both retail and wholesale. The calculated trade in value may be adjusted slightly higher if there is more money owing on the vehicle than its current value. The banks and lenders will only allow a percentage of negative equity to be absorbed into the new vehicle.
The amount owed on your trade-In is the total buyout from the previous loan. The total amount owning calculated may or may not be above or below the market value of the vehicle. If you owe $5,000 dollars and the vehicle has a fair market value of $15,000, then you are in a positive equity position, but If you owe $20,000 dollars and the vehicle has a fair market value of only $15,000, then you are in a negative equity position, referred to in the industry as being upside down on your trade in value. Don’t worry this is very common and you can still trade your vehicle in. Apply now to find out more.
Sales taxes vary across Canada, deepening on the province you live in. Here in Edmonton and Alberta wide the sales tax is 5%, Saskatchewan & Manitoba 11%, NWT, Yukon, and Nunavut; 11%Saskatchewan; 12% in BC; 12% in Manitoba and Ontario; and 15% in Quebec, PEI, Nova Scotia, New Brunswick, and Newfoundland.
Trading in your vehicle can save you some money when it comes to sales taxes, because you only pay taxes on the difference calculated. When you trade in your vehicle, the amount you are taxed on is only on the amount remaining after the trade in value. You only need to pay tax on that reduced amount of the sale. It can also reduce your payments in the long term if you are financing. Example, you are trading in an old car and upgrading to a luxury car. In Edmonton Alberta and Alberta wide you will be saving the 5% sales tax. See below example.
The annual interest rate is calculated on the principal per year. Try a few different numbers in the calculator to that you feel might be an interest rate you would get based on your current credit situation. If you are calculating a new car rate it could be as low as 0%. Used vehicle interest rates are usually from at least 3.99% or more for perfect credit and up to about 9.9% for decent credit. If you are trying to rebuild your credit but uncertain about the interest rate, just try some rates between 9.9% and 14.9% to see how this can affect the payment. If you would like to get prequalified and find out what interest rate you can get apply here now.
The loan term is the time in months your will take to pay off your new vehicle. Loan terms can vary and most people in Edmonton Alberta and Canada will use a longer term to calculate their car loan payment. The longer the term usually reflects a lower payment. Loan terms may vary on the year of the vehicle as well. Older cars may only qualify for 12-24 months, and later model cars fall in the 36-to-84-month range. Try the Canada car loan calculator with different scenarios and see what works best for you.
Payment frequency depends a lot on how you prefer your cash flow to work. Maybe you get paid bi weekly, semi monthly or even monthly? You can adjust the auto loan calculator to reflect your budget and financing habits. The more payments you make over the set time, the less interest you will be paying over the term of the loan. If you choose to make payments bi weekly for example, the payments per year would be 26, compared to monthly at only 12 payments. Not only do you get a bit lower payment with bi weekly, but the interest over the loan is slightly less as well.