Car budget calculators. These tools can be a helpful asset for digging into one’s finances and supporting financial health. Especially when used before you purchase your next vehicle. The car budget calculators, or auto finance calculators, in the Learning Center at Â鶹ֱ˛Ą Consumer USA’s website can help you understand just how much car you can buy.

Types of Auto Finance Calculators

In the Learning Center, you will find three finance calculators:

• Affordability. This calculator will help you determine how much you could finance, based on your desired monthly payment, term, annual percentage rate (APR) and down payment.
• Early payoff. Adding to your monthly payment can shorten your financing term and save money. See how in the Â鶹ֱ˛Ą Consumer USA payoff calculator.
• Monthly payment. Here’s how much your monthly payment would be based on the vehicle purchase price, financing term and down payment.

Why You Should Use an Auto Finance Calculator

An auto finance calculator, or car budget calculator, can help keep your finances organized and give a good snapshot of how not to go over your monthly budget. When you map out where all your money is going – housing, food, clothing, gas, entertainment, etc. ­– it’s easier to determine how much car you can afford to fit into your finances. Additionally, understanding such things as loan terms, budget management and doing comparisons of loan options, also can help you avoid added financial stress.

How to Calculate Auto Loan Interest and Payments

We’ve put together a few examples to show you how plugging numbers into the auto finance calculators can be quite helpful in figuring out a budget.

Based on the Â鶹ֱ˛Ą Consumer USA affordability calculator, for a desired monthly payment of $500, with a down payment of $1,000, you could finance about $22,300 – the remainder for a $23,300 vehicle – over 48 months at a 6% APR.

°Őłó±đĚýmonthly payment calculator confirms that a vehicle costing $23,300 with a $1,000 down payment and financing $22,300 would result in about a $500 monthly payment.

For more information about the difference between interest rate and APR, see this article.

The numbers you use may differ from those we have in the above example, but the three auto finance calculators should help you stay financially healthy after getting your car.

It’s a worthwhile calculation.

These statements are informational suggestions only and should not be construed as legal, accounting or professional advice, nor are they intended as a substitute for legal or professional guidance.

Â鶹ֱ˛Ą Consumer USA is not a credit counseling service and makes no representation about the responsible use or restoration of consumer credit.

The referenced calculators are meant for educational and illustrative purposes only. The calculators estimate amounts solely based on the information you provide. We do not guarantee the availability of the illustrated terms or your eligibility for any product referenced. The estimated amounts generated from the calculators do not constitute a finance offer.

The post Use auto finance calculators before you buy your next car appeared first on Â鶹ֱ˛Ą Consumer USA.

Financing a vehicle purchase offers a convenient and affordable way for many people to get on the road. In return for those benefits, there are some borrowing costs involved and two of the most important are interest rate and annual percentage rate (APR). Knowing the difference between them and how they affect a loan can help you make both an informed and budget-friendly buy.

Interest rate and APR

Interest rate: The cost of borrowing money from a lender. An interest rate is charged on the principal loan amount, which is the sum you borrow to finance a vehicle.

APR: This is the overall cost of borrowing including the interest rate and additional fees charged with the financing, such as the origination and documentation fees.

Is it better to have a lower interest rate or APR?

It’s a case of the lower the better for the interest rate as well as APR because, together, they affect how much you will spend on your purchase. However, by taking into account added fees, APR provides the most accurate expression of your financing costs.

If you’re checking out the costs of different loan options, remember to compare interest rate to interest rate and APR to APR, rather than comparing the interest rate for one to the APR of another, so that you make a proper comparison.

How to get a lower rate

A lender will offer a qualified loan applicant an interest rate based, in part, on the risk involved in lending to them. Here are some approaches to help lower the risk and get a favorable rate.

Improve your credit scores

Credit scores, based on credit history, are a key factor in most lending decisions. Higher scores are associated with lower rates and there are several ways to improve your credit habits and potentially raise your scores. The Consumer Financial Protection Bureau recommends:

• Paying your bills on time, every time
• Using no more than 30% of your total credit limit
• Disputing and correcting any errors on your credit reports
• Only applying for the credit you need
• Maintaining good credit habits over time

Make a down payment

Any money you can put down, including the value of a trade-in, will reduce the amount you need to borrow and, in turn, lower the risk for a lender.

Consider a vehicle’s age

Financing for new vehicles tends to offer buyers lower rates than for used ones. Why is that? Should you fail to make your car payments and the lender attempts to repossess and then resell the vehicle to recoup the money it’s owed, a vehicle that was bought new will have a more predictable resale value.

Think about loan duration

Longer loans generally come with higher interest rates than shorter loans as the lender will have a lengthier wait to get their money back.

Team up with a co-applicant

Remember that you don’t have to go it alone. If your credit scores are low, for example, you may want to apply for financing with a creditworthy co-applicant to improve your borrowing position.

Shop real rates and payments

When you’re ready to purchase a new or used vehicle, see if you with ¶Ů°ůľ±±ą±đ®, by Â鶹ֱ˛ĄÂ®. Pre-qualification is quick and easy, there’s no impact on your credit scores and it’s a smart way to set your expectations before completing a full financing application.

If you pre-qualify, you can use the to learn more about your financing options and shop for a vehicle that fits your budget. Then, if all your details check out at the dealership, you’ll receive the exact terms in your pre-qualification.

The post Understanding APR vs. interest rate for auto loans appeared first on Â鶹ֱ˛Ą Consumer USA.

Take a look at these opportunities before you search for a deal.

End of the month

Dealership staff who are trying to meet their month’s sales goal in the closing stages of the month may be more willing to negotiate on the price of a vehicle as a result.

To avoid rushing the buying process in this period, consider doing your research and preparation, such as taking a test drive, finding out the value of your trade-in, if you have one, and getting for financing in advance. You’ll then be able to focus on making your purchase at month’s end.

End of the model year

As new model-year vehicles arrive at dealerships there’s generally a need for dealers to make way for them by clearing previous model-year stock from their lots, which can lead to deals.

While automakers are now introducing new model-year vehicles more consistently throughout the year, August and September are still the months when these arrivals are most noticeable, says Edmunds.

End of the calendar year

The end of the year is one of the best times to buy a vehicle for several reasons. In a similar scenario to end-of-the-month sales, dealerships are looking to hit annual sales goals which can be accompanied by a readiness to offer a better deal as the year ends.

Good deals at this time may also be affected by dealers wanting to sell and move out any remaining previous model-year vehicles. Plus, holiday sales events get underway. Black Friday kicks off a season of sales events that last through the new year in which many automakers and dealerships offer discounts and incentives to boost sales.

Best month to buy a car

December has generally been the best month to buy a car based on the highest discount on a manufacturer’s suggested retail price (MSRP), according to Edmunds, but that trend disappeared for a number of years due to disruption caused by the COVID-19 pandemic. Data for 2023, however, shows that December once again provided the highest level of discounts on vehicle MSRPs.

The post When is the best time to buy a car? appeared first on Â鶹ֱ˛Ą Consumer USA.

Orange is apparently not the new black.

At least when it comes to vehicle paint schemes.

While both may seem appropriate as we ready for Halloween 2024, black is by far more popular, with about 20% of car shoppers choosing it, according to a study by Edmunds.com.

And orange cars? Only .06% of car buyers – less than 1 percent – don’t find an orange vehicle scary. So, orange is limited to just a few models befitting its frightfully low popularity, right?

Surprise!

At this year’s North Texas Auto Show, we were thrilled to find several different orange-colored models. An October-fest of oranges, if you will.

These latest models follow in the fright steps of orange examples from current and previous years ranging from the aptly named Punk’n Metallic 2020 Jeep Gladiator, 2020 Pumpkin Orange Lamborghini Huracan and 2022 Lava Orange Porsche 911 Carrera.

The list also includes the Sunset Orange 2019 Hyundai Veloster, at one time the best-selling orange vehicle, based on CarMax sales.

That means the car color world may be changing – at least a little.

While shades of orange and black, not to mention pumpkin spice, are prominent across store shelves this time of year, the trend of orange-hued vehicles remained as pointed out by Chevrolet when relating to their Sonic model. “Inferno Orange is the second-most requested color for Chevrolet Sonic hatchbacks, accounting for nearly one in five dealer orders and signaling a new color trend in the subcompact market. Its popularity trails only the ever-popular black hatchback.”

“Chevy design experts predict orange will remain a color trend in the future, transitioning from the bright, chic tint of today to a more burnt, coppery finish in the years to come.”

The orange advantage

While buying an orange vehicle may be on trend, there could be another advantage for owners.

“The more unusual colors such as orange, yellow and green are not as readily available, yet they are popular with enough car buyers to create a demand that directly affects their resale value,” iSeeCars.com reported in the most recent study we could find.

Orange vehicles, in fact, depreciated an average of 21.6% over the first three years of ownership, according to iSeeCars.com, making it the color that held its value best.

The analysis of 1.6 million vehicles by the website revealed an average depreciation of 29.8%.

Wildest, craziest, hottest

In a recent article, Car and Driver identified several vehicles among The Wildest, Craziest Paint Colors Available in 2024. An earlier version of this article included the Thermal Orange Pearl Acura NSX, which was, “in our humble opinion, the best-looking orange offered today.”

Others making the C&D online list were the Dragon Orange Metallic Audi Q8, Pulse Orange Audi Q3, Sunset Orange Metallic BMW M2, 8-series, Autumn Metallic Cadillac XT4, Sebring Orange Tintcoat Chevrolet Corvette, Go Mango Dodge ChallengerĚý˛ą˛Ô»ĺĚýCharger, Orange Fury Honda Fit, Madagascar Orange Jaguar F-type and the aforementioned Punk’n Metallic Gladiator.

Ford may offer the most orange models with at least nine – depending on how you count the trucks – perhaps the most outrageous being the 2020 Twister Orange Metallic Ford Shelby Mustang GT500.

And the hottest orange?

How about the Lava Orange Hyundai Santa Fe, Fire Orange Kia Forte, Classic Ignition Orange Ram 1500 … or the Habanero Orange Metallic Volkswagen Tiguan.

Decorating your car for Halloween

With Halloween happening this month, you may be wondering about decorating your own vehicle for the holiday, orange-colored car or not.

One easy, homemade way to turn your car into a ghost is to use a white sheet or car cover and draw or use stickers to create eyes. Having a vehicle like this in the driveway greeting trick-or-treaters is sure to add to the festivities of the season.
There are also additions you can make to the front of your vehicle, like vampire teeth that attach to your front grille or bumper to make for a scary scene as your car approaches.

Decorating a steering wheel or car seat cover can also provide extra festive accents to get you and your passengers in the Halloween spirit when driving. If you’re attending a trunk-or-treat event, parking with your trunk open and decorating the inside, maybe adding a few cobwebs with a fake spider along for the ride, can make for a creepy car decoration as well.

In the end, orange or black vehicle, decorated or not, we hope you enjoy the fall season and have a fun and safe Halloween.

The post Scream-worthy orange cars to light up Halloween appeared first on Â鶹ֱ˛Ą Consumer USA.

It’s easy to jump in the car and just drive, but when you’re taking a road trip or even starting a new commute, a little planning goes a long way.

Calculating the gas cost of your trip is a smart trick to budget travel expenses and there are a couple of routes you can take.

One is doing it by hand, which can be completed in a few simple steps and gives you some know-how, while the other is using a gas cost calculator. For that, you’ll need a few basic details about your vehicle.

Route A – Take 4 simple steps

Calculate your vehicle’s gas mileage

Fill up your gas tank and set the trip odometer to zero then drive as needed until it’s time to stop for gas again. When you next refuel, note the trip odometer reading to get the number of miles you’ve driven.

Alternatively, you can get this figure by writing down the overall odometer reading the first time you fill up and again the second time, with the difference being your miles driven.

Next, divide the mileage by the number of gallons of fuel you pumped during the second gas stop to find out your miles per gallon (mpg).

Know before you go: As you’re in the process of budgeting, keep in mind that driving habits and a vehicle’s condition affect gas mileage. Check out the suggestions at the end of this article to improve your mpg.

Work out the total distance of your trip

Whether you’re going point-to-point or taking a round trip, a quick look at your navigation app or online map resources will tell you how many miles the journey will be. Select your preferred route, consider traffic hot spots to avoid and, if you’re planning a road trip, think about any sights and detours you want to build into the trip.

Check the current price of gas

You may remember the price of gas from your last fill-up but prices can fluctuate a lot over time and by region, so that might not be a good guide. View the current national and regional gas prices provided by AAA to get an idea of what the price of gas will be for your journey, and where you’re likely to fill up.

Calculate the total gas cost of your trip

With miles per gallon, trip distance and the price of gas at your fingertips, calculate the gas cost for your trip as follows.

1. Divide the trip distance by your vehicle’s miles per gallon to discover how many gallons of gas you will need.

2. Multiply the number of gallons by the price of gas.

Gas cost formula:

(Total trip distance / mpg) x current price of gas = total gas cost

Example:

Let’s say you’re taking a 200-mile road trip, you’ve worked out your gas mileage to be 30 mpg and the current gas price is $3.25. Putting these figures into the formula shows the total gas cost to be:

(200 miles / 30 mpg) x $3.25 = $21.67

Route B – Use a gas cost calculator

Taking a different approach, there are a number of useful calculators that will give you the cost of a trip and even directions and information for savings on gas. The government’s energy department offers a fuel economy website that enables you to select your vehicle year, make, model and engine type, enter your start and finish points and any stopping-off places on the way, plus the percentage of city driving for the trip. Click to calculate and you’ll receive your fuel cost estimate, a map of the journey and directions. You can also enter additional vehicles to compare costs.

GasBuddy is another popular option. Type in your starting location, destination, a stop-off if you have one, and select whether you want to calculate a one-way or round-trip. Then select your vehicle’s year, make, model and engine type along with the fuel you use – regular, midgrade, premium or diesel. GasBuddy will give you the trip cost, distance and projected gallons used, as well as where to fill up and your potential savings from using recommended gas stations.

Other trip expenses to consider

Whichever option you choose, calculating the gas cost of a trip is a handy way to plan for your expenses and, while it is an estimate rather than an exact figure, it will help you to avoid an unexpected fuel bill at the end.

Remember that there are often other expenses, too. They include the likes of toll fees and, for longer journeys, meal breaks and accommodation, while unforeseen events like accidents and delays may crop up, adding miles and gas to your journey.

How to save on fuel costs

Good driving habits along with taking care of your vehicle can improve fuel economy, reduce the amount of gas going into your car and keep more dollars in your pocket. The government recommends a few ways to do just that, below.

Drive sensibly – Speeding, rapid acceleration and braking can lower gas mileage by 33% at highway speeds and 5% in towns, so anticipate traffic situations, keep an adequate distance from the vehicle in front and accelerate smoothly.

Remove excess weight – Avoid keeping unnecessary items in your vehicle, particularly heavy objects.

Avoid excess idling – Turning off the engine when parked will save a quarter to half a gallon of gas per hour depending on the vehicle and use of air conditioning.

Keep to the speed limit – This is also part of driving sensibly and safely. It’s useful to know that fuel economy generally reduces quickly at speeds above 50 mph.

Go for cruise control – In most cases, cruise control on the highway helps to achieve a steady speed and save gas.

Take off the roof rack – Removing a roof rack and using the trunk to carry items will improve a vehicle’s aerodynamics and reduce drag.

Use overdrive gears – Overdrive gearing, which provides a high-gear mode, lowers engine speed and reduces gas consumption.

Look after your vehicle – Solid vehicle maintenance helps to reduce gas costs by keeping a vehicle running smoothly. Making sure the engine is tuned and the tires are properly inflated, using the manufacturer’s recommended engine oil and replacing the air filter if it becomes clogged all contribute to proper maintenance.

The road to more resources

If you’d like to know more about managing your auto expenses, explore the tools, videos and further articles across our Learning Center.

The post How to calculate the gas cost of a trip appeared first on Â鶹ֱ˛Ą Consumer USA.

You may also be aware that factors to get financing in both homes and cars rely in some part on a credit score, or FICO Score. According to the Fair Isaac Corporation (FICO), which calculates these scores, “90% of top lenders use FICO Scores” in their lending process.

While the overall FICO Credit Score numbers typically range from 300 to 850, when it comes to buying a car, you may wonder what the minimum score is to get an automobile loan. And like many things, that answer can vary based on different information.

According to Car and Driver, “Most used auto loans go to borrowers with minimum credit scores of at least 675. For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments.”

How credit scores affect car loans

Auto finance lenders use a credit score and credit data in your credit report, plus other sources and factors, to evaluate loan applications. Things such as previous payment history, income and employment history all can play a part in determining credit availability.

The credit score and these reports play a big role in determining whether a consumer is approved for an auto loan, and, if so, what interest rate they will receive. Typically, the higher the credit score, the better the interest rate.

However, since every person’s situation is unique, one’s specific credit score and credit reports can affect car loans in vastly different ways.

Car loan rates by credit scores

So just how are auto loan interest rates tied to credit scores and where do the numbers come into play? According to ·ˇłć±č±đ°ůľ±˛ą˛Ô’s State of the Automotive Finance Market Report, close to a third of borrowers fall in the super prime credit category, while over 17% fall in the subprime and deep subprime categories.

The chart below shows the average Annual Percentage Rate (APR) for new and used vehicles in relation to the credit score category. (Rates as of Q1 2024, published May 30, 2024.)

Steps to improve your credit score before applying for a car loan

If you currently have a low credit score, the good news is that there are ways that can potentially improve your number before you apply for an auto loan.

These include:

• Paying bills on time
• Checking your credit reports and clearing up past-due amounts
• Disputing any errors found on your credit reports
• Applying only for the credit you need
• Leaving unused credit cards open
• Keeping credit card balances low and paying down debt

Keeping a close eye on your credit score and personal finances can go a long way in possibly setting you up for loans in the future. And how do you keep up with your credit score? We’re glad you asked.

How to check your credit score for free

To find out your current credit score and see if there are any past-due amounts or errors that need addressing (as mentioned above), you can check your score through the three credit reporting bureaus — Equifax, Experian and TransUnion. You are entitled to request your credit reports from each of these free of charge once a year.

To request your reports, call 877-322-8228, go online at www.annualcreditreport.com.

For more information on when you should check your credit report, read the article here.

How to get a car loan with subprime credit

If you currently have a deep subprime score (range 300-500) and little time to improve your credit before needing a new vehicle, there are some things that may help you get a car loan.

A few things that can help in the process are:

• Put more money down to lower your loan amount.
• Trade in a vehicle to put toward the new one.
• Involve a co-applicant to go in on the loan with you. Applying with a co-applicant who has a prime credit score, if approved, can possibly help get a car loan with better terms.
• Consider buying a used over new vehicle and an older model rather than later one.

Can I repair my credit and boost my credit score?

If you do have a subprime credit score, one way that can lift the score and repair any past credit hits that have occurred can be through credit repair companies. As this article on What is credit repair and how does it work? explains, “Credit repair companies offer coaching for debtors looking to improve their credit by providing guidance on how to pay off their debts, along with their aims for positive impact on their credit scores.”

Make sure you do your research on a potential credit repair company, including what charges they may assess, and read their reviews to gain more insight. Good places to start are Google reviews or the Better Business Bureau (BBB).

We’re here to help

No matter your credit score, when you’re ready to see if you pre-qualify for a new vehicle, our team at can help you. The process takes two minutes and gives you real-time rates.

And speaking of credit scores, using the Drive pre-qualify process has no impact to your credit score, so feel free to get started today.

*The statements in this article are informational only and should not be construed as legal, financial, tax or other professional advice.

The post What’s the minimum credit score to get a car loan? appeared first on Â鶹ֱ˛Ą Consumer USA.