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When you're planning on taking out a car loan, it's important that you understand how much you can afford to borrow. Understanding your borrowing limits will help make sure you get the loan that is right for you and avoid costly interest repayments. Use our car loan repayment calculator on the table below to see what repayments will be on actual products from a range of lenders. You can also use our calculator tool and input your own loan information.
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A low rate loan to finance new vehicles or cars up to two years old. Borrow up to $75,000.
The table below features an automatic payment calculator. Simply pop your details in and you'll be able to
Don't let the graph put you off, the car loan repayment calculator is easy to use. Just follow these simple steps:
Now you've got the basics of how to use the car loan repayment calculator, it's time to learn how to really use the calculator. Let's say Jane is looking at taking out a $5,000 car loan at an interest rate of 7.80% p.a. for a five year loan term. She's planning to make monthly principal and interest repayments for the duration of her loan.
Jane will be making a monthly repayment of just over $100 and incur $1,054.24 in interest payments over the life of her loan. Jane decides that she can afford to put more than $100.90 a month towards her car and she wants to save herself some money on interest.
Here's what happens when she tweaks her loan term in the car loan calculator:
As you can see, by choosing a four year loan term instead of a five year loan term, Jane only increases her repayments by about $20 a month (only $5 extra a week) and she saves herself $217.64 over the life of the loan. Not to mention she pays off her loan one year earlier.
After using the car loan calculator and getting that result, Jane decides that she wants to reduce her repayments and also save herself money on interest. Have a look at what happens when she decides to make weekly repayments instead of monthly:
By making her repayments weekly instead of monthly, Jane saves herself $2 over the life of her loan. Also, the monthly amount is around $112, rather than $122. Not much, but it's something.
Like Jane, see how much money you can save on your loan by using the car loan calculator. If you want to compare your car loan options, you can use the table above.
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 were 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 three years. The total amount of interest paid over that three-year period would be $4,774.
If you compare this loan to one with three-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 three years despite the higher interest rate.
Some questions that we get asked frequently include:
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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