When it comes to auto finance, Perth consumers often find themselves a little overwhelmed by the choice of available options. This can make the process of choosing a new or used car a little less enjoyable as you browse through the numerous financial options. However, these days many loan companies offer online finance calculators, which can provide you with some basic information to determine the affordability of your finance deal.
Why use a calculator:
Often affordability is the primary consideration when deciding if you should upgrade your vehicle. While there are a great many companies offering auto finance, Perth consumers may not have the time and motivation to spend hours on the phone going through every deal on offer. An online calculator allows you to enter some basic information to determine the cost of your loan in real terms. Many of these calculator models will provide an example of the monthly payment and overall cost of a loan. While this information is subject to your specific credit rating, it can provide the information as to whether it is a feasible financial option.
How to use a calculator:
Many of these calculators work on a very similar format. Generally, you will be asked to fill in the purchase cost, the loan term and the amount of deposit you have available. If you plan on using your current vehicle as a trade in, you will need to calculate the trade in value and put this in the deposit box. Obviously, the larger the deposit, the smaller the amount of loan. This will create a much lower monthly repayment cost. Additionally, increasing the loan term will reduce the monthly payment. However, you will notice on the results screen that the overall cost of the loan will be greater.
Points to consider when using a calculator:
As stated above, many of these calculators are based on the interest rates available for those with perfect credit scores. It may be that you do not qualify for the lowest rate, so your payments and costs would actually be higher. Some calculators allow you to set the interest rate so you can assess the costs at different rates.
You should also ensure that you are using a loan calculator and not an online application form. Most websites will warn you that the form is an application and it will generally have an apply button rather than calculate. You should avoid online applying with different companies as multiple loan applications can raise a red flag with lenders and compromise your credit score.
Using the calculations:
The loan calculator results can provide a great resource for researching a great auto finance deal. You can use the figures to assess whether the deal offered by your loan broker is a good one. Of course, your loan broker will have tailored quotes to your particular credit file. However, the calculator information can assist you in determining the affordability of your purchase and the long term financial implications associated with purchasing your new vehicle.
If you would like help finding a great deal in auto finance Perth consumers should contact us. We have access to a diverse panel of lenders and would be happy to assist you in obtaining the best deal to finance your new vehicle.
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