This used car loan calculator estimates your monthly payment for buying a second hand car through loan, total interest paid and the costs with depreciation & maintenance. There is in depth information on this topic below the form.

Car purchase price:*
Down payment (if the case):
Annual interest rate:*
Auto loan term:*
Monthly maintenance cost:
Years you intent to use the car:

How does this used car loan calculator work?

Planning to buy a used car through loan rather than a new one due to the fact that the last one depreciates at a faster pace? This financial tool can help in estimating your monthly effort associated with this purchase by considering the following details:

  • Car purchase price (CPC) represents how much you have to pay for the second hand vehicle.

  • Down payment (if the case) (DWP) is the amount of cash you have available to deposit

  • Annual interest rate (AIR) expressed a percentage is then transformed in decimal format and at monthly level (AIR/1200).

  • Auto loan term (ALT) that can be either in years or months. It helps in forecasting the monthly payment level (– N from the formulas given below can be either the value the user inputs within this field in case the term is expressed in months or can equal ALT * 12 in case the term is in years)

  • Monthly maintenance cost (MMC) is an optional info that refers to the amount you expect to spent on average month per month with the car.

  • Years you intent to use the car (YYT) which is also not mandatory but can help in the approximation of the costs associated with depreciation and maintenance.

The algorithm behind this used car loan calculator returns the details provided below:

  • Monthly loan payment

  • Total paid for the loan

  • Loan amount borrowed

  • Total interest paid

  • First year car depreciation value

  • Total car depreciation

  • Car worth after depreciation

  • Total maintenance costs

  • Total cost of ownership the car

  • Monthly cost of ownership the car

What to know about new versus used cars

  • Depreciation in case of new cars is higher than in case of used ones.

  • There is no certain rule regarding the maintenance costs. It may vary from one case to another, but there are cases in which the maintenance of a new car exceed the one of a second hand car and the reverse, but that depends on the model, its requirements, viability over time.

  • Usually the car insurance is related to the value of the insured auto, thus in many cases the costs with insurance policies may be higher than in case of a second hand vehicle.

  • Environmental taxes in case of second hand cars are usually higher than in case of new cars as typically the new ones respect the latest regulations.

  • A one year old car is between 10 - 20% cheaper than a new one.

Example of a calculation

Assuming that an individual want to buy an used car model “X” estimated to be worth $10,000 through a loan, while making a down payment of $1,000, over the next 3 years at an interest rate of 5%. The maintenance cost is estimated at $50 per month, while the owner expects to use it over the next 8 years:

Monthly loan payment: $269.74

Total paid for the loan: $9,710.57

Loan amount borrowed: $9,000.00

Total interest paid: $710.57

First year car depreciation value: $1,450.00

Total car depreciation value: $7,144.19

Car worth after depreciation: $2,855.81

Total maintenance costs: $4,800.00

Total cost of ownership the car: $12,654.76

Monthly cost of ownership the car: $131.82

06 Mar, 2015