Using a Truck Loan Calculator
Deciding between different used Ford trucks? Tossing up which Ford
Ranger or Transit model to buy? Wondering what options you can afford
to include? Trying to decide if you will buy a new vehicle or a used
Having some idea of what your truck loan payments might be could help
the decision-making process. A truck loan calculator does exactly that
for you, quickly and easily.
Most banks, finance companies, finance brokers and even some vehicle
dealers have set up loan calculators on their websites. They are a
great resource but to get the best out of them, you should be aware of
how to use an online calculator and fully appreciate their
- You’ll see that loan calculators are formatted like most online forms with fields that you need to enter data into and essential information boxes indicated with an asterisk.
- With the loan calculator, you enter the amount you want to borrow first. This can be the full purchase price of your truck, the purchase price less your trade-in or any deposit you choose to pay or the purchase price plus an allowance to cover dealer charges and other delivery expenses.
- You’ll then be asked to enter the loan term. This is how long you want to repay your Ford truck. Some large value truck loans can extend to 7 years/84 months but the average is usually 5 years/60 months.
- You’ll see a field for the interest rate. No, you don’t have to be a financial expert to calculate the current interest rate on truck loans. The website should display the current interest rate they can achieve for most truck loans.
- You’ll also have an option for a balloon/residual/buyback. This is the percentage of the purchase price that you would like deferred for payment at the end of the loan term. After you’ve paid all the monthly repayments.
- Once you’ve entered data (amounts) into all the fields, you simply click the calculate button and up pops the repayment estimate.
- If you’re comparing vehicles, just enter another set of figures and you’ll see how repayments vary.
- If the repayment is too high or too low, just vary the loan term or balloon and you’ll see how that changes the repayments.
BUT….understand the limitations!
There is usually a disclaimer on the site and you should read it. These are generic calculation devices. They don’t know you and they don’t know which lender will offer you a truck loan. So they can’t include fees and charges that may apply to your loan or any other aspects around your individual loan application. The final repayment level that you might be offered may be higher or lower than the estimate. Be mindful, that using a calculator is not an offer of a loan or approval.
If you’d like a truck loan calculator to compare truck loans, get in touch with us as we know where you can source one.