Car Finance Calculator
2021 is seeing the motor vehicle industry recovering from the hard hit it took in 2020 due to the global pandemic. This means that people are buying more cars, car finance institutions are called upon more often and making use of the car finance calculator is vital for consumers.
When thinking of buying a new car, you need to figure out if you are able to cover the monthly costs of a new vehicle. It is important that you do research regarding not only the best price on your dream car, but also the best possible finance agreement. While private bankers are costly, try asking your dealer for advice on this; they might be able to get you a better deal. Always bargain for a better deal than the one on the table. Ask for better interest rates and make sure that you understand all the admin fees involved. You do not want to be shocked by hidden fees at the end of the month!
It is important to consider all costs. Use a car finance calculator to help you determine what you will be paying at the end of each month. Keep in mind that these calculations exclude fuel, repairs and insurance costs.
It is important to know what you are getting into financially when buying a car. Monthly instalments, fuel costs, repairs and hidden costs are important factors to consider when upgrading your current vehicle or buying a car for the first time. Many financial institutions assist buyers to determine if they can afford their monthly instalments using a car finance calculator when applying for car finance.
The car finance calculator is used to calculate your monthly car repayments, as well as your total payments and the total interest based on your vehicle.
A car finance calculator generally includes the following information:
- The vehicle price
- The deposit you will be paying
- The deposit percentage (%)
- The interest rate percentage (%)
- The period (in months)
- Whether it includes or excludes a car warranty
- The loan amount
How does the car finance calculator work?
When completing the required fields of the car finance calculator, it determines the estimate of your monthly instalments according to the cost of your car, the deposit you have paid, the interest rate and the instalment period you chose to settle the loan.
Take note the following regarding most online car finance calculators:
- Most banks require you to pay a deposit of 10%.
- The interest rate is never pre-determined and is influenced by the age of your car, your credit history and other factors. The interest rate that will eventually be used for your loan will be verified by your finance provider only on application of your loan.
- All online calculations should only be considered an estimate and will be verified by your finance provider on application of your loan.
- When adding information to the car finance calculator, no other monthly expenses are taken into account, only the loan amount.