Fancy that beautiful car your neighbor has? Want to enjoy the thrills of driving a car on the highway?
Well, it’s time you stopped just dreaming. You can easily get a car of your choice by applying for a loan.
A car loan calculator can help you go miles in preparing to get a loan for your dream car.
What is a car loan:
Cars have become a must for everyday commuting. What’s more, cars are also considered as a status symbol.
A car says you have ‘arrived’, in terms of financial and social status. What’s more, a car keeps your family together on journeys.
You can drive your spouse or your kids to the mall or the theater in style. You can take a quick weekend getaway with your family or friends.
Cars are thus a source of delight and thrills as well as a highly practical buy for your home and family.
But then, most cars are costly and not all of us can invest huge amounts to buy a car. This is where a loan comes handy. Are you looking for best financial calculators then check it out this url
These are simple finance options provided to you, by various financial institutions, for buying your dream car.
When do loans come in handy:
Loans for the car are not just for new car buyers. They can come in handy in a variety of situations.
Here are some examples of when to seek a loan for your car
- When you need to buy a new car or sell off your old car and need that extra amount to pay for the new car
- When you want to fit important accessories such as safety grills or the audio system that you covet
- When your car has been damaged in an accident and you need to carry out major repairs
- When you need to pay for car insurance or buy an extra warranty for your car
- When you want to paint your car
- When you need to modify your car body and fittings
For corporate and business house or government agencies, car or other vehicle loans can come handy when they want to purchase cars in bulk for their employees or for daily transport services.
These can also be utilized to save on taxes in some countries, especially, when you buy fuel-efficient cars that run on electricity or hydrogen or solar power.
In some cases, loans can be availed to buy cars specifically meant for racing.
Types of vehicle loans:
While a variety of finance schemes are available in the market; not all are suitable for each person.
Every individual’s needs are different and so are the loan plans suitable for him. Before you jump to take a conclusion, do study the types of loans for cars available in the market.
Here are some categories offered by companies, with different promotional names:
- Easy loans that require just a few documents
- Spot loans that require no or little documentation
- Bad credit loans for cars specially meant for people who have faltered in paying any previous loans
- Pre-computed loans where you pay back principal amount and the full accrued over the entire term
- Simple interest loans where you are charged interest per day based on the balance that is remaining
- Used car loans and loans against an old car or other property or mortgage
Thus, you have a huge number of options to choose from.
Most car dealers and financial lenders will negotiate the best deal for you but if you want a guess-estimate of your borrowing capacity and the amount of premium that you can pay back each month, then you must look for specialized calculators to compute their car or vehicle loans.
What is a car loan calculator:
A loan calculator is simply a piece of code that runs on websites.
All you have to do is visit the websites of vehicle loan lenders and enter a few details that help you calculate your loan eligibility.
These calculating programs are available as offline desktop applications besides the web-based versions.
Before you use any such loan computation program, find out information about the bank, dealer or lender and their terms and conditions.
Also, jot down your details about your salary, expected the price of the vehicle, your other loans, and expenditures and yearly savings, etc. to help you identify the best deal using an automated calculator.
Most calculators offer the following features:
- Calculate your total car price along with local taxes
- Calculate interest on vehicle loan payable by you
- Calculate tenure or number of months or years required to pay back the amount borrowed
- Calculate value of any other assets, property or collateral that can help you guarantee the borrowing amount
- Calculate total amount that can be borrowed by you
Advanced versions of these calculators can help you obtain discounts against online payments; calculate service charges, duties, annual depreciation against car value, etc.
Some calculators can also predict prepayment charges or taxes based on your estimated prepayment capacity.
Once you understand the EMIs or equated monthly instalments you need to pay back, look for a reliable money lender for your car loan.
Most car dealers offer good options. Banks, corporate bodies and car companies also offer loans of all kinds. You can also compare results from these calculators from their websites to find the right finance option for you.
Do use a car loan calculator to understand the interest rates and the payback or the EMI you must make every month. Do search for a reliable calculator. Here’s wishing you a speedy car loan.