August 25, 2015 · Finance · (No comments)

Submitted by: William Moore

Choosing a new or used car is a big job. There are countless styles to choose from. Problem is, many people put all of their attentions into choosing a car, and don’t even consider shopping around for a car loan.

Calculating car loans is an important step in borrowing the money you need to purchase a car. This is because a car loan calculation allows you to estimate the monthly payments required to own the car, before you make the final purchase.

There are many factors to consider in calculating car loans. There are three very important questions that you must be able to answer:

– What is the interest rate?

– What is the loan period?

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– What is the loan principal?

A qualified lender will happily provide you the answers you need. This information may also be available online. Once you have the answers you need, you can then begin calculating car loans to help you make the final decision. Your car loan calculations will allow you to estimate your total costs, and confirm how much you’re able to afford based on your income. To fully understand these calculations, you need to know what all of the financial terms mean.

Interest Rate

The interest rate is generally expressed as a percentage. This is the amount of money paid on top of the initial amount borrowed. It’s considered to be the cost of financing. Let’s say you borrow $10,000 to buy a car, but at the end of the term you’ve actually paid $18,000 in monthly payments. The extra $8,000 is the interest, and it’s calculated to reflect the current interest rate. Rates do fluctuate, so shop around to get the best deal.

Loan Period

This is the “life cycle” of the loan. It’s the length of time that the borrower has agreed to take to repay the loan. Most car loans are for periods of two, three or four years. The principal and interest payments are spaced equally throughout the loan period.

Loan Principal

When calculating car loans, the loan principal is the amount of money originally borrowed. Loan principal is a term used in finance that refers to the original amount of the debt, before additional fees or interest. Your total interest charges at the end of the loan period will depend upon the amount of the loan principal, as well as the loan period. With this in mind, it’s easy to see that the loan principal is the foundation of calculating car loans. In some cases, the loan principal is used to refer to the amount of money owing, after the debt has been partially paid. In other words, it’s the outstanding balance. With each monthly payment, this amount slowly and steadily decreases, until eventually the entire balance is paid off.

Don’t be surprised if you check on the principal balance after a few months, and find that it’s barely been touched. That’s because your first few months of car loan payments cover mostly interest, and very little principle. Only a small percentage is used to pay off the balance. This repayment plan is common in amortization loans. After these initial months, your monthly payments will be divided in half, with equal amounts going to pay off the interest and reduce the principal. This trend continues until the remaining principal balance has been paid.

Buying a car takes a lot of research and smart decision-making; and choosing automotive financing should too. Calculating car loans is essential to arranging financial assistance that you can afford, and making your dream of car ownership a reality.

About the Author: William Moore contributes articles to several popular online magazines, on

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February 16, 2015 · Finance · (No comments)

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Why a Payday Cash Advance is Important to Some People


Phoenix Delray

Not everyone will need to use a payday cash advance in their lifetime. For many families, this can be an important lifeline in times of financial need or crisis. For those who are unable to obtain traditional credit, this can sometimes make a real difference in their quality of life.

One of the primary reasons that people need this service is when an emergency happens. The single parent who needs her car to get to work may not have the money to get it repaired. If she cannot get to work, she may be in danger of loosing her job. Being able to get some assistance for this is something many people need. Something as inexpensive as a new tire may not be of much concern for most people. They will have the money in their checking account to pay for it or they will be able to use a credit card. Many lower income households do not have extra money and they do not have access to credit cards or other types of loans. They only thing that they can rely on is payday cash advance loans.

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People may need some money to travel if there is a family emergency of some kind. Many will use money to buy a plane or bus ticket to go home for a parent s illness. Some use them to attend a funeral. Some people will need money for a doctor s visit for themselves. Others may need a new outfit in order to interview for a new, higher paying job. There can be plenty of good reasons why people need to access this type of financial resource.

These products can be accessed several different ways. The ones that most people are familiar with are the types were people walk in to get help. These kinds most usually require that the person show several pay stubs and sometimes a bank statement. These documents will be used to verify that the person is employed. Most payday cash advance lenders will require the person to write a post-dated check for the amount of the loan. They will also have a charge for any fees. The check will be cashed on or around the person s next payday. Should the check bounce, there will be additional fees tacked on by both the lender and the bank so most people are anxious to comply.

While some people do not think the interest rate and fees charged for these loans are fair, the fact is they help people who have no other options. The fees are sometimes high but compared to losing a job because one can t get to work, they really pale in comparison. People should not use them for things like a day at the spa but should only ask for them in true emergencies. Being able to use a payday cash advance can often make a big difference for lower income households.

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