How to Calculate Truck Financing

Purchasing a truck is a major financial investment that involves a significant amount of preparation. The decision of how to finance a truck involves several key steps and will require you to do a fair amount of research to prepare for your purchase. To calculate truck financing, you must establish the cost of the truck, decide on how much you will pay as a down payment, explore loan options and make a decision that best fits your personal wants and needs.

Instructions

How to Calculate Truck Financing

1

Determine the cost of the truck. You should identify the truck you want to buy and locate a detailer where you can purchase your vehicle. You should shop around to ensure you have the best possible price for the truck you want to buy. Once you have identified where you will purchase the truck, you should negotiate a price. Once you have the price set, you can begin to explore various ways to finance the purchase.

2

Decide on what kind of down payment you can afford. You should examine your personal finances and establish a cash amount that will be placed directly towards the total cost of the truck. If your truck costs $20,000 and you can make a $5,000 down payment, you will have $15,000 left to finance through a loan from a financial institution.

3

Examine loan options. Just as different businesses will have varying prices on a specific truck, different banks may offer varying interest rates and fees on automobile loans. You should speak with several banks in your area and inquire about interest rates, fees and repayment periods. If you have $15,000 remaining to pay for a truck, you should examine financing options for that total remaining amount. Automobile dealers may also offer financing options. You should look for a low interest rate, little or no additional fees and a repayment term that fits your personal needs and budget.

4

Calculate your expenses over time. This calculation can be done very easily by using an online lease calculator, such as the one provided by Cars.com or Edmunds. You will need to input the information you gathered in the previous steps such as the price of the car, the interest rate and the repayment term. This will yield a calculation that will illustrate your total monthly payment, as well as the total cost of financing.

5

Choose the best option. Once you have identified the pros and cons of the financing options available to you, you must make a decision as to your best option. The best option is usually the least expensive option that best fits your needs. If you decided to take out a loan through a financial institution or an automobile dealer, you must apply for the loan. If you are approved, you can use the funds to purchase the truck. Your payments will begin immediately.