More Information about our online Car Loan Calculator
Our online car loan calculator is a good tool to get a basic understanding of your personal budget in regards to how much you may want to borrow and how many years you would like to do the loan over.
You must ensure though, that you treat these calculators as a tool only, as lot of broker websites are also using these calculators as a tool for marketing purposes. The best online calculators are the ones that allow you to adjust all the relevant fields and should not be any less than borrow amount, interest rate, term of the loan and balloon or residual payment.
If there is anything less than those fields, what you may find is that the website will quote the lowest interest rate available, which is most likely unachievable and with a balloon repayment which may not be something you want, or something that may not be available on the type of car you are looking to purchase.
You may also find that due to the repayments being much cheaper than you expected, you may be more than happy to hand over your information for one of their consultants to ring you back and the marketing purpose of the online calculator has done its duty without giving you what you were really looking for.
Once they ring you back, they will then advise that the car loan repayments quoted doesn’t apply to your circumstances for various reasons and start the sales process. I know of websites that if you calculate the weekly payment over the term of the loan, it doesn’t even pay back the car purchase price, so it will definitely be way cheaper than what anyone else has advised and a cheeky way of extracting your information. They do this by applying massive balloon or residual payments that most likely wouldn’t qualify for approval by any lender and put this in the fine print disclaimer.
Car loan calculators will never take into account many factors, such as any setup or ongoing costs to establish the loan, or the vehicle you are purchasing, such as age, private sale or dealership sale and also which lenders would approve your loan, so you should always speak to a professional to get something that is accurate and tailored to your personal situation and proposed vehicle purchase. This can usually be done obligation free with companies such as CarLoans.com.au and they can also advice on many other considerations in regards to affordability and loan terms based on vehicle type and age.