Buying a new car can be a daunting task as you plan your finances to afford the right vehicle. When you can’t afford to buy a car outright, or don’t want to part with a large amount of your finances at once, you can apply for a loan. Before applying it is important to understand the different components that make up a loan, and the relationships between these components. Many comparison websites will feature a car payment calculator, a tool designed to help you estimate repayments and interest rates on a desired loan before you commit to one. But should you trust the figures from an online car payment calculator? In the below blog we will discuss how this online tool may be able to assist you on your finance journey.
If you are in the market for a great car loan, chat to the finance brokers at Fido Finance by giving us a call on 13 FIDO or access our online form to book an obligation-free quote.
What is a Car Payment Calculator?
The purpose of an auto loan calculator is to help you plan your loan when you are looking to buy a new or used car. Most calculators require you to simply enter the rate, term, engine type, and amount of money you would like to borrow. From there you will be given an estimate of how much you will have to pay back monthly and for how long based on your desired term.
How a Car Payment Calculator Can Help You:
It Helps You Assess Your Options
An auto loan calculator is designed to inform you of the expected loan repayments for the loan you are seeking without having to commit to the loan yet. This can help you consider your options if you are still debating which term option to select for your loan, the frequency of your repayments, or even varying deposit amounts. Being well informed of your options is the best way to find the right deal for you at the cheapest price.
It’s Simple & Saves Time
Using a car payment calculator is often an easy process with clear instructions on which information to enter. It is possible to calculate your repayments without a calculator, but since you must personally and accurately calculate the loan amount, interest rate, loan term, and monthly payments yourself, it can be a difficult process. Using a finance calculator is a simple way to get an approximate repayment and interest rate when you begin to research your options.
Negotiate for the Best Deal
By assessing your options and the different repayment schemes that are available, you will be in a better position to make an informed decision when the time comes to purchase. It helps if you have a good credit score or are willing to pay a bigger down payment, but being aware of your options is handy knowledge to have when trying to negotiate the best deal for your situation.
How the team at Fido Finance Can Help
A car payment calculator may be useful when you begin to research your options, however we recommend engaging a broker when the time comes to apply for a loan. Online tools are useful when determining the repayments you can afford, but without inputting documents to verify your financial details and personal circumstances it will be difficult to enter an accurate interest rate, which may skew your results. The team at Fido Finance are here to act as your personal loan calculator and are committed to finding you the best rate and repayment for your circumstances. You tell us your desired loan amount, what you would like your repayments to be, as well as the term, and we do the rest!
