Car loan rates are well worth considering when you decide to buy a new car. It is important to compare the rates provided by different car loan companies so that you can get the best car loans deal available rather than just taking the first you are offered and then regret your choice later.
Two major factors will affect your car loan rates: the amount of money you wish to borrow and the length of time that you will take to repay the loan. Although these seem obvious things to consider before choosing a car loan, the process of calculating how much you should apply for and the repayments that you will pay can present you with a few problems. This is where a car finance calculator comes in handy.
Car Finance Calculator
A car finance calculator is an online calculator that you can use to calculate your regular payments for a specific loan amount over a specific period of time. Our calculator has an easy-to-use interface where you input data and it automatically does your calculations. At its simplest, enter the sum borrowed, the period of the loan and the interest rate and it will provide you with your monthly payment.
Secured and Unsecured Car Loans
If you are buying a used car, the car loan rates might be slightly different than those for buying a new car. Also, the rates differs for secured loans and personal unsecured loans. Personal unsecured loans are charged much higher interest rates than secured loans. If you decide to go for a secured loan due to its lower rate, you have to have car insurance.
You will also have to repay the loan immediately if you sell your car, and some bank car loans do not offer finance or limit the term for vehicles that are over 7 years old. The normal repayment period for an auto loan is usually between 3 and 5 years, and you can choose which you can best afford from the car loan rates you are offered.
That might depend on your dealer, since many lenders do not offer-lower interest secured loans for imported vehicles. Keep in mind that a secured loan in the context of cars means that the car is the security – fail to pay and you lose the car.
Car Loans Interest Rates
When it’s time to choose a car loan rate, the banks and the traditional lending firms are not always the best option for a cheap car loan, because they price their loans and usually arrive at their car loans interest rates based on different factors. For example your rates could depend upon :
- The age of the car,
- The strength of the application,
- If it is a consumer or commercial,
- The amount you wish to borrow,
- Your credit rating,
- The strength of your finance application.
Sometimes it will be more beneficial for you to refer to a car loan broker knowledgeable in car finance options and the prevailing market rates. You should then be offered a comparison of car loan rates with recommendations of your best options. Your choice of broker could determine your overall success in securing the loan you want at a price you can afford. They could also recommend the best bank for your circumstances.