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If you’re looking for a car loan, it pays to compare your options. With so many options on offer however, it can be tricky to compare them all. That’s where the car loan calculator comes in. Car loan calculators make it easy to compare how much you will pay in interest on a loan, how much you will pay month-to-month in repayments, and how attractive the loan is overall.
Finding the right car loan calculator
Before you find the best car loan, you need to find the best car loan calculator. There are dozens to choose from, so try out a few and find out which one works best for you. A good calculator will usually let you input the loan amount, the interest rate, the loan term and the repayment frequency. Some may allow you to add in fees and extra payments.
Once you have inputted that information, the calculator should tell you what you need to know about the car loan. This may include your monthly repayment amount, the amount you will pay in interest, and the total amount you will pay back on the loan. It may also include a graph that shows the interest and principal amounts over the length of the loan.
Finding the right car loan
Once you’ve found a car loan calculator that works for you, it’s time to start looking for car loans. To do this, you could speak to your current lender or bank, you could check online for options, or you could use a car loan comparison site. Whatever you choose, be sure to compare each option to find the most affordable and most suitable loan for you.
How to compare car loans with a car loan calculator
When you are comparing car loans, use your car loan calculator to help you choose the right loan.
- Check out which loan charges the lowest amount of interest by inputting the loan details into the calculator. Loans with a lower comparison rate may seem a better deal at first glance, but if they are offered over a longer time, you may end up paying more in interest.
- Using the calculator, you can find out how much the loan will cost overall and how much you will pay back each month. This can help you choose the smartest loan for you and your budget, not just the loan that looks good on paper.
- Think about how much you want to pay back each month, and try to choose a loan offered over the shortest period of time to save on interest.
- Play around with loan repayment options, and find out whether a monthly, fortnightly or weekly repayment schedule works better within your budget.
- Using a car loan calculator, you may also find that you can afford a larger loan, or you may realise you can’t afford as much as you thought. This can prevent problems further down the line.