A loan calculator is very simple-it works with 3 main variables, the amount you will be paying, the interest rates, and of course, how many payments you have to pay. It prevents you from having to do this extra step yourself.

Of course, you generally have to eliminate the down payment amount, and remember, the higher this number is, the lower your monthly installments will be.

However, be wary of blindly believing an online car loan calculator in everything they say, for one simple reason. Quite simply, most websites that offer an online car loan calculator are merely promotions for that particular company, and therefore sometimes the rates you see and what you will actually end up paying are two different things.

That said, however, most online car loan calculators are usually fairly accurate at determining at least a ball park figure of what you will be paying, and are certainly the fastest way to find the best rate among the many lenders on the market.

Obviously, anybody can figure out how to use an online car loan calculator, but how can you use it to find the best loan on the market? The best method is to go online and do some simple research, input numbers from at least 10 or 15 different companies, and find out which offers you the best interest rates.

Once you've done this, now call up the more expensive of those companies, and inform them you are interested in taking out a loan for a used or new car, and that you've found a comparable loan with another company for a cheaper price.

Often times, just doing this simple step will enable you to get a better rate. If you succeed in knocking their price down, then go back to the other loan company, and do the same step.

The exact call script you should use is out of the scope of this article, and you might even consider investing in a negotiation course, because being able to negotiate better terms is the key to getting anything you want in life, not just a good rate for a car loan.

However, the most important factor you always need to remember is be prepared to walk away at all times from a deal. If you come across desperate to get a loan, and they are your only option, you definitely will not get the best rate, as they know they have you in the palm of their hands.

Of course, the only way to first figure out the top 3 or 4 companies is to utilize an online car loan calculator, as this will save you a lot of time and aggravation during this process.