Lenders know the value of creating payment options to suit an individual's needs, and that means lenders today will even write biweekly loans for cars. But just how much money can you really save with a biweekly car loan? Our biweekly car loan calculator will show you exactly what you can expect in terms of real savings.
The variables used in our online calculator are defined in detail below, including how to interpret the results.
The car loan amount is the net amount financed after subtracting out trade-in allowances and down payments. This value is used as the basis for the monthly and biweekly car loan payment calculations.
This is the annual interest rate on the automobile loan. This is not the APR, which takes into account other costs associated with the loan.
This is the monthly payment necessary to repay the car loan over its lifetime. This calculator provides the user with two monthly loan payments: one for the standard financing arrangement, and a second for your biweekly loan.
With a biweekly car loan, you are making payments every two weeks. But keep in mind that you are making 26 payments each year, which are more than 2 payments x 12 months. With this type of loan, your biweekly payment will be exactly half of your standard monthly payment.
This is the term, or length, of the standard loan, stated in months.
One of the advantages of biweekly car loan payments is the fact that you are making 26 payments each year, rather than 24. These additional payments will reduce the length of your loan. This portion of the calculator will tell you how long you have to make those biweekly payments before the loan will be paid in full.
This is how many months you save by switching to biweekly loan payments.
This is the total amount paid to the bank, or lending institution, over the life of the car loan. Once again there are two values calculated, one for the standard loan, and one for the biweekly auto loan.
This is the total value that a biweekly automobile loan delivers in terms of total interest charges for this loan. By choosing this type of payback arrangement, you are accelerating payments, shortening the term of the loan, and thereby reducing the borrowing costs.
Biweekly Car Loan Calculator - Copyright © 2005 - 2015 Money-Zine.com (Last Reviewed on January 16, 2015)
Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.