Car Loan Calculator the Benefits Explained

The many and varied loan options available for consumers today have enabled people from all walks of life and income levels the to purchase their dream car. For most people who make plans to own a new or used car, the possibility is endless because of the availability of car loans in the car market today. However if you are serious about financing a new car, and you need to understand your options, then you could try using one of the many car loan calculators.

A car loan calculator helps you find out an approximation of your monthly payments including the financing company’s interest rates, among others. In a lot of cases this is not an exact loan quote but something that will help you prepare for the payment that you need to make and how you will divide your monthly income between paying your mortgage, loans and home-related expenses such as food, clothing, education, etc.

But there is now a car loan calculator with a difference, provided as part of a new website that has been designed especially for the UK motor finance market. Car Loan Adviser has brought a breath of fresh air to the industry. This new site has been developed by Carlyle Finance who have been providing finance to the UK car buyer for nearly forty years. Backed by the First Rand Banking Group they are one of the fastest growing Car Finance providers in the UK today and are constantly striving to improve their relations with both the customer and their 3000 plus dealers.

The ability to get the best deal on car finance has always been to make use of thorough research; and the internet and on-site financing companies and comparison websites has only made this easier. Car Loan Adviser however does it slightly different, through the use of cutting edge technology and video. Carlyle Finance has produced a tool that compares the different methods of financing your new motor car against that of their dealer finance; you can even utilise the technology in many of their associated dealers showrooms while you are looking at the cars themselves.

So what’s so different? Car Loan Adviser looks at the options you have as an individual for financing your purchase, so it could be a loan from the bank, advance on a mortgage, secured loan, credit card or even your good old savings account. Taking each method on its own merit, they then explain the benefits and savings that could be made when choosing to use dealer finance over any of these options. The videos use real people to explain the benefits in easily understood terms, allowing you to compare each option quickly and with minimum input. This provides you with real calculations and figures for payment, interest rates and costs per month.

As the dealer finance rates are always maintained and updated, you have peace of mind that the figures provided are accurate. It’s never been easier or clearer as to how much money you can save than by using the benefits provided by Car Loan Adviser and the car loan calculator.

What to Look For in a Car Loan

If you want to learn how to get the best car loan. you should take an hour out of your day and spend some time performing some online research. It could be an hour that will repay you with hundreds of dollars in savings.

In the aftermath of the global financial crisis many lenders and finance companies withdrew from the market leaving borrowers with little choice. As the credit market begins to thaw however, there is an increase in competitiveness beginning to emerge again and is now possible to find some really competitive deals.

If you know what you are looking for the choice can be an easy one but for the unwary borrower there are still traps and pitfalls that can cost you hundreds, maybe thousands, of dollars.

Let’s take a look at some of the things to look out for.

  • Interest rates do not tell the full story. It is important to remember that the interest rate quoted by a lender is not necessarily a good way to compare loans. This is because there are other fees attached to car loans that must be factored into your calculations. Take the following example. A $15,000 car loan over four years at an interest rate of 11% will cost $384.16 per month. If you add on the application fee of $150 and the monthly service fee charged at $5 per month, the total repayments made over the four years comes to $18,829.75. However, the same loan at an interest rate of 11.5% with no application fees or ongoing charges will cost a total of $18,605.78. A seemingly more expensive loan is actually $223.97 cheaper!
  • Some loans can also attract an early repayment fee. This means that if you come into some money and are in a position to pay the loan out before the loan term expires you may be charged a fee. Sometimes this fee can be hundreds of dollars and can certainly leave you with a sour taste in your mouth. If you think you might be in a position to be able to pay the loan out sooner than expected, make sure you take into account the earlier payment fees which may apply. What you should be looking for is flexibility that allows you to make extra payments without penalty.
  • Car loans that are provided at car dealerships may be an easy option given the ease with which finance can be obtained at the time you are purchasing your vehicle. But when you think about it, the dealership is acting on behalf of a finance company and will be paid a commission for arranging the finance. This commission is passed on to you as the consumer which means that you will be paying for the convenience. It is a much better idea to obtain a preapproval before you even enter the dealership and use this as a negotiating tool to get a better price on the car you want.

These simple steps should convince you to obtain a preapproved car finance before you start negotiating the final price for your vehicle.

Calculate Payments on a Car Loan for Free

Those people who love to play around with figures will be able to easily find out the formula that is used to figure out their car loan repayments. However, most people looking to take out car finance want a quick and easy way to calculate payments on a car loan without having to undertake the time consuming task of finding formulas and doing the long calculations that go with these. These days it is easy to work out how much your auto finance will cost you as there are a large number of auto loan calculators available online. What’s more these tools can be accessed for free!

One of the most important things that you can do before you even begin considering purchasing a car is to calculate payments on a car loan. This will not only ensure that you finance is affordable, but it will help you set a budget when it comes time for you to shop for your new vehicle. Getting finance approval is easy when you are applying for a loan amount that fits within budget, and when you take the time to calculate payments on a car loan prior to applying for one, it will increase your chances of your loan application being successful.

Using an online calculator to calculate payments on a car loan is quick and simple. You will have to enter some information regarding your finance, such as the amount you intend to borrow, the interest that will be applied to your loan and the length of time you would like to take your loan over. However, you can adjust any of these figures to see how these factors will effect your repayments at any time making it easy to compare different finance packages and options so that you can find the one that best suits you.

You can find an online calculator to help you calculate payments on a car loan quite easily. If you go onto almost any auto loan website you will generally be able to access an auto loan calculator as most companies offer these tools to their customers. You will also be able to find a number of them by carrying out a simple internet search. There is only one formula that lenders use to calculate payments on a car loan and all of the online loan calculators are set up to use this one formula. This means that the results you obtain through these tools are not only consistent, but they will also provide you with accurate figures.

Perhaps the best thing about using online loan calculators to calculate payments on a car loan is that it enables you to easily compare the different finance companies you may be considering. This will help you significantly when it comes to finding the cheapest auto loan options available to you. Shopping around for finance is one of the most important things that you can do when it comes to getting auto finance and comparing the cost of your loan is simple when you use these convenient and free online resources.