Example:
We can use the example of an individual who is trying to secure $20,000 to purchase a new car in order to better understand how the calculator works. If the first loan they found was to advertise a 12% p.a. rate, with an upfront fee of $500 and monthly maintenance charges of $10, they would be making monthly repayments of $664 over the course of 3 years. The total amount of interest paid over that 3-year period would be $4,774.
If you compare this to a loan with 3-year loan terms, a $1,000 upfront fee, a $20 monthly fee and an interest rate of 10% p.a., you might assume that the lower rate will be cheaper. However, the car loan calculator shows that the better deal is actually the 12% p.a. loan. The lower fees make this loan $178 cheaper over the course of the 3 years despite the higher interest rate.
* This is a fictional, but realistic, example.
Hi,
I have a car loan for last 2 years.. Paying high interest rate > 14%. Thinking of refinancing it. Will that be beneficial?
Thanks
Hi Mayuresh,
Thank you for reaching out to Finder.
Refinancing may be beneficial for you depending on the interest rate of the loan. You can check our car loan refinancing page to learn more about the benefits as well as what you need to do to complete a refinancing. Kindly review and compare your options on the table displaying the available providers. Once you have chosen a particular provider, you may then click on the “Go to site” button and you will be redirected to the provider’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. Hope this helps!
Cheers,
Reggie