How Do I Calculate My Used Car Auto Loan Payments?

Determining your used car auto loan doesn’t have to be overwhelming. At Roughlock Auto, we’re here to help you through every stage of the pre-owned vehicle purchasing and financing process, so you can focus on picking out your dream car. Learn how to calculate car payments with our experts.

Check Your Credit Score

Your credit score is one of the most important factors to consider when purchasing a vehicle. It tells lenders how reliable you are to lend money to, which is why drivers with higher credit scores typically have more favorable loan term options. You want to check your credit score early on in the purchasing process so you know what kind of vehicles will be available to you, and so you have time to raise it, if possible.

Do Your Research

The more you know about the market, the more confident you’ll be when purchasing a pre-owned vehicle. Research common down payments and monthly costs for pre-owned vehicles and consider your needs. Knowledge will give you more leverage to negotiate for your favorite models.

Use the 20/4/10 Rule

If you don’t know where to start when it comes to vehicle financing, turn to the 20/4/10 rule. It recommends putting down 20% of the vehicle’s value on the day of purchase and paying the vehicle off within four years. With this guideline, you can then work backward to determine your monthly payment. The 20/4/10 rule also recommends spending no more than 10% of your monthly income on transportation costs.

Begin Used Car Financing in Spearfish, SD

At Roughlock Auto, the pre-owned vehicle financing process is made easy. We provide tools and resources you can rely on, like a payment calculator and online financing application. Visit our dealership to take the first step with help from our expert financing team today!