How to use the Car Loan Comparison Calculator
With hundreds of car financing options in the market, comparing car loans can be be a daunting and time consuming task, especially because interest rates are not the only factor you should consider.
One way to make it easier is by using our car loan comparison calculator. This tool can give you estimates on your monthly repayments and help you compare different car loans. All you need to input into the calculator is:
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Loan amount: This refers to the amount you borrow from the lender
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Loam term: The is how long you're car loan term is.
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Interest rate: Charged by the lender, this is the cost of borrowing money.
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Upfront/establishment fees: This is the cost of applying for a car loan.
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Monthly fees: Some lenders will charge monthly fees depending on the car loan you choose.
With the results given from our calculator, you can easily see the difference in costs between car loans, helping you get a hold on which car loan product will fit with your financial needs so you can save money when financing your car purchase.
Why Compare Car Loan Rates?
Car loans are not all equal. They differ in a lot of aspects from their interest rates, fees, repayment frequencies, and other loan conditions. All of these will have an affect on your monthly car loan repayment as well as the overall amount you pay back on your loan.
The car loan interest rate is one of the most important things to look out for in a car loan. Even the slightest difference in rate can have an impact on your repayments. For instance, let's say you take out a $30,000 car loan with an interest rate of 4%, on a 5 year term. Based on this your monthly repayment would be $552.
On the other hand, if you took out the same loan as above but with a 3% interest rate, your monthly repayment would be $539. This would result in a monthly saving of $13, or a $780 saving over the life of the loan.
Comparing car loan rates can be helpful when it comes to choosing the best loan for your budget. This way you will be able to differentiate the car financing options that are available to you, helping you save money on your car loan repayments.
Using our car loan comparison calculator makes comparing loans a lot easier since this gives you a clear breakdown of details between different loans.
*Comparison rates based on a loan of $30,000 for a five-year loan term. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of 11 April 2024.
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Car Loan Comparison FAQs
On average, a car loan usually lasts between one to seven years. Generally, the longer your loan term is, the higher overall amount you will end up paying back, as the interest will be charged for a longer period.
0% car financing usually comes with loan conditions such as higher deposits, shorter loan terms, limited car choice, and stricter lending criteria. This is because money isn't being made on interest.
It can be a good idea to get pre-approved from a lender before going to a dealer. This will give you the option to know how much you can afford to borrow. Giving you an idea on the price range of cars you can afford to buy.
There are two types of car loans available, secured and unsecured loan. A secured car loan means that there is an asset used as collateral just in case you don’t repay the loan. On the other hand, an unsecured car loan, means that there is no collateral used against the loan.