1. What is the Desjardins Auto Loan Calculator?

The Desjardins Auto Loan Calculator helps you estimate your monthly car loan payments based on the loan amount, interest rate, and term. It uses the standard loan payment formula to provide accurate payment estimates.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment (CAD)
• \( P \) — Principal loan amount (CAD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of monthly payments (term)

Explanation: The formula accounts for compound interest over the life of the loan to determine fixed monthly payments.

3. Importance of Auto Loan Calculation

Details: Calculating your monthly payment helps with budgeting and ensures the loan fits your financial situation before committing to a purchase.

4. Using the Calculator

Tips: Enter the total loan amount in CAD, the annual interest rate (as offered by Desjardins), and the loan term in months (typically 24-84 months for auto loans).

5. Frequently Asked Questions (FAQ)

Q1: Does this include taxes and fees?
A: No, this calculates only the principal and interest portion. Additional costs like taxes, registration, or insurance are not included.

Q2: What's a typical Desjardins auto loan rate?
A: Rates vary based on credit score, loan term, and vehicle age. As of 2023, rates typically range from 5% to 15%.

Q3: Can I calculate bi-weekly payments?
A: For bi-weekly payments, divide the monthly amount by 2 and multiply the term by 2.083 (26 payments per year).

Q4: How does down payment affect the calculation?
A: Subtract your down payment from the vehicle price before entering the loan amount.

Q5: Are there prepayment penalties?
A: Desjardins typically allows prepayments without penalty, but check your specific loan agreement.