One of the most common discussions we have with customers deals with matching the right car to a given budget. It can be tough! We’ve seen cars that cost less than $10k, one car that cost $138k, and thousands of cars in between.
To help you better calibrate your car budget and get a better sense for the Shift inventory that matches it, we’ve created a quick and easy car loan calculator.
Calculate max price or monthly payment
We generally have two types of financing conversations with customers. The first is when they have a max price in mind and are trying to figure out what their loan terms will look like. The other is when they have a specific amount budgeted for their monthly payment and are trying to figure out what cars they should be looking at.
With our new car loan calculator, you can easily calculate for either scenario. Just use the “calculate max price” or “calculate monthly payment” tabs and input your down payment, interest rate, and loan length and let the calculator do the rest.
View available inventory based on your budget
Once you’ve calculated either your max payment or total price, we make it easy to see exactly how many cars in our inventory match your budgeting criteria. This will give you a total price, so remember to factor in tax and extras like warranties or gap insurance.
You’ll never need to spend mental energy filtering out cars that aren’t in your price range again.
Answers to financing FAQs
We also wanted to use this car loan calculator as an opportunity to answer the questions we’re most commonly asked:
What’s a good interest rate?
The interest rate you’re offered from a bank depends on your credit score, annual income, and monthly expenses. Use our slider to see some typical APRs for various FICO credit bands.
Other factors, such as down payment and loan length, will also affect your rate. Rates are slightly higher for used cars than for new cars due to higher inherent risk with used cars.
How much should my down payment be?
Putting at least 20% down will unlock lower interest rates and make it less likely that you’ll end up owing more than what the car is worth.
For people with normal credit, every $1,000 down saves you $20 on your monthly payment. Plus, making regular payments on financing helps your credit hygiene.
What’s a good loan length?
Keep in mind that loan terms longer than 60 months will cost you more in the long run. While the monthly payments may be lower, you’ll end up paying more in interest over time. Our loan calculator will show you the total interest paid for varying loan lengths.