Calculators can be helpful tools when comparing loans. RateCity provides users with two different car loan calculators to assist in narrowing down their search: a repayment calculator and a borrowing power calculator.
What can a car loan repayment calculator tell me?
A repayment calculator may be able to provide you with an estimate of your potential car loan repayments, based on your ideal loan amount, loan term, and interest rate. Using the information you provide, the car loan calculator estimates your potential weekly, fortnightly, or monthly repayments, as well as the interest payable over the life of the loan.
Once you've calculated the total expenses associated with a prospective car loan and have an estimate of your repayment obligations, you'll be well-equipped with the essential information and research materials to make an informed decision.
Faced with a choice of multiple car loans, you can input various interest rates and loan durations to assess how your repayments may fluctuate in each scenario. This approach may assist you in identifying a car loan that aligns more closely with your financial constraints and objectives.
While our comparison tables enable you to compare the interest rates, fees, and the various terms and conditions attached to car loans, a calculator can take your research one step further by helping you evaluate the overall cost of borrowing for different scenarios. This could help ensure that not only are your monthly repayments manageable, but you're also making a financially prudent decision over the life of the loan.
What can a car loan borrowing power calculator tell me?
A borrowing power calculator assesses your personal financial information to offer a general idea of how much you may be able to borrow.
If you’re searching for a car loan, it’s essential to know that lenders won’t necessarily approve any loan amount you seek. The amount of money you can borrow largely depends on your financial situation, including your income, expenses and credit history.
By examining your credit score and potential interest rate, as well as how much you can afford to repay and at what frequency, the calculator provides an estimate of your “borrowing power”: how much you can borrow and service affordably.
This calculation may come in handy when narrowing down your shortlist of vehicle options, whether online or at a car dealership, as you’ll have a better understanding of the various options you may be able to afford.
Utilising calculators won’t affect your credit score, so use them as many times as you like to compare different loans.