Car loan comparison rate calculator
Working out the best deal you can get for a car loan could be easier than you may think. You can spend time going from dealer to dealer and be offered a range of car loan options, but how do you know you're getting the very best deal? When you go online and start inputting your details into a car loan comparison rate calculator you'll find a wide range of options so you can decide what works best for you and your financial circumstances. A calculator helps you remove the guesswork around the amount you will have to repay in interest over and above the principal sum. It's a smart way to get on top of the financial commitment you're planning to make.
How does a car loan comparison rate calculator work?
When you input a range of details into the calculator, you will get a picture of what you will have to repay on your car loan. You should search a number of lenders so you can make clear comparisons of what is on offer.
You will usually input the following information:
- Loan amount: How much you want to borrow.
- Interest rate: The annual interest rate for each loan you want to compare, and whether it is a fixed or variable rate.
- Loan terms: How long you want to take the loan out for.
- Frequency of repayments: Repayments are usually made monthly but some lenders may offer fortnightly or even weekly terms to repay. This is your own choice and will reflect your budget and circumstances.
- Fees: These refer to any upfront fees you may have to pay, such as application and establishment fees. Some loans may have maintenance fees, and these should be included as part of the comparison process.
Why do people use a car loan comparison rate calculator?
For many people, the details of loans and their costs can be hard to fathom. A calculator removes the need for you to guess what deal is best for you and places hard financial facts at your fingertips so you can make a more informed decision.
What are the main features?
A car loan comparison rate calculator will provide you with all the options you need to make comparisons between any loans that you are considering. It does your calculations for you, but you must ensure you enter all the information accurately.
What are the pros and cons of a car loan comparison rate calculator?
A calculator will enable you to focus on the financial implications of taking one loan out against another, or several others. As long as you input all the data correctly, it puts you in control by helping you decide what works for your budget and circumstances.