By: Apurva Shree
Your dream of driving down a freeway without a road map is not too far in the distant future thanks to best auto loans and the car loan calculator. If you think you are being confused and misled by financial institutions, you need to stop worrying and start using the loan calculator.
What Is A Loan Calculator
Loan calculator is a smart tool that gives you a fair estimate of the expected monthly repayment amount for any available car loan. All you need to do is feed in the responses to the queries relating to the following:
- The amount you want to borrow
- The loan repayment period
- Your total household income
- And finally your personal circumstances
Once these details have been filled in, based on its findings the calculator displays the various types of available loans and their estimated monthly installments. With such valuable data in hand, it should not be difficult for you to choose the best available new car loan.
If you are also looking for payment protection insurance or PPI, that amount could also be plugged into the calculator along with the rest of your data. In case of a bad credit new car loan, the calculator will ensure that it does not display names of lenders who do not approve of lending to persons with bad credit history.
The exceptional feature in a loan calculator is that it is also able to calculate the estimated amount of depreciation. You can also calculate the actual purchase price, inclusive of the amount before taxes and fees and the annual percentage rate.
Where Do I Find A Loan Calculator
New car loan calculators are usually displayed online by most websites providing auto loans. These calculators can be used free of cost.
Benefits Of Loan Calculator
The most obvious and most helpful benefit of the loan calculator is that:
- Free of cost
- Gives you a fair idea of your financial standing for the next couple of years in case of a loan
- Helps you compare car loan rates offered by the different lending agencies and finally select the best suited for you
Word Of Caution
While the benefits and advantages derived out of the features of the calculator seem impressive, you need to act with caution. Online calculators are usually available on the website that offers loans. There will, therefore, be a bias towards loans by that specific company. You will have to either calculate loan rates on different calculators or use logic and work out the odds yourself.
The car loan calculator is a good guide, so make the best use of it and be sure you get a good valued car loan.